Competition Appellate Tribunal

The Competition Appellate Tribunal is a statutory organization established under the provisions of the Competition Act, 2002 to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India under sub-sections (2) and (6) of section 26, section 27, section 28, section 31, section 32, section 33, section 38, section 39, section 43, section 43A, section 44, section 45 or section 46 of the Competition Act, 2002. The Appellate Tribunal shall also adjudicate on claim for compensation that may arise from the findings of the Competition Commission of India or the orders of the Appellate Tribunal in an appeal against any findings of the Competition Commission of India or under section 42A or under sub-section (2) of section 53Q of the Act and pass orders for the recovery of compensation under section 53N of the Act.

The Central Government has set up the Appellate Tribunal on 15th May, 2009 having its Headquarter at New Delhi. Hon’ble Dr. Justice Arijit Pasayat, former Judge of Supreme Court, has been appointed as the First Chairperson of the Appellate Tribunal. Besides, the Chairperson, the Appellate Tribunal shall consist of not more than two Members to be appointed by the Central Government. The Chairperson of the Appellate Tribunal shall be a person, who is, or has been a Judge of the Supreme Court or the Chief Justice of a High Court. A Member of the Appellate Tribunal shall be a person of ability, integrity and standing having special knowledge of, and professional experience of not less than twenty-five years in, competition matters, including competition law and policy, international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs, administration or in any other matter which in the opinion of the Central Government, may be useful to the Appellate Tribunal. The Chairperson or a Member of the Appellate Tribunal shall hold office for a term of five years and shall be eligible for re-appointment. Provided that no Chairperson or other Member of the Appellate Tribunal shall hold office after he has attained the age of sixty-eight years or sixty-five years respectively.

Every appeal shall be filed within a period of 60 days from the date on which a copy of the direction or decision or order made by the Competition Commission of India is received and it shall be in the prescribed form and be accompanied by the prescribed fees. The Appellate Tribunal may entertain an appeal after the expiry of the period of 60 days if it is satisfied that there was sufficient cause for not filing it within that period.

The Appellate Tribunal shall not be bound by the procedure laid down in the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules made by the Central Government. The Appellate Tribunal shall have, for the purposes of discharging its functions under the Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908). Every order made by the Appellate Tribunal shall be enforced by it in the same manner as if it were a decree made by a court in a suit pending therein. If any person contravenes, without any reasonable ground, any order of the Appellate Tribunal, he shall be liable for a penalty of not exceeding rupees one crore or imprisonment for a term up to three years or with both as the Chief Metropolitan Magistrate, Delhi may deem fit.

Competition Appellate Tribunal (COMPAT)

Prior to 2007, if a party was not satisfied with the decision of the Competition Commission of India (CCI), It had to file an appeal in the Supreme Court of India, thereby increasing the pendency of cases in the Court. However, after the Competition (Amendment) Act, 2007, the Competition Appellate Tribunal (COMPAT) was established. It provided the provided the parties with a proper channel for appeal and changed the hierarchy of appeal. After the establishment of the Competition Appellate Tribunal (COMPAT), the appeal from Competition Commission of India lies in front of the Appellate Tribunal and a further appeal goes to the Supreme Court.

National Company Law Appellate Tribunal (NCLAT)

However, the establishment of Competition Appellate Tribunal (COMPAT) was found not to be as effective as it was hoped would be. There were a number of conflicts between CCI and COMPAT related to their sharing of power. The result of this conflict was that in 2017 an amendment was made through which the provision of Part XIV of Chapter VI of the Finance Act, 2017 came into operation. After such amendment the Competition Appellate Tribunal (COMPAT) ceased to exist. In place if it the National Company Law Appellate Tribunal (NCLAT) was constituted.  Accordingly, Sections 2(ba) and 53A of the Competition Act and Section 410 of the Companies Act, 2013 have been appropriately amended and various other provisions of the Competition Act dealing with the Competition Appellate Tribunal (COMPAT) have been omitted.

Previously, all appeals against specified orders of the Competition Commission of India (CCI) would lie to the Competition Appellate Tribunal (COMPAT) whereas the National Competition Law Appellate Tribunal (NCLAT) dealt with, inter alia, appeals arising out of orders of the National Company Law Tribunal (NCLT) under the Companies Act, 2013 as well as the Insolvency and Bankruptcy Board of India (IBBI) under the Insolvency and Bankruptcy Code, 2016.

Filing an appeal

The Section 53B of the Competition Act, 2002 provides for ‘Appeal to Appellate Tribunal’.

Clause 1 of Section 53B

Section 53B(1) states that:

“The Central Government or the State Government or a local authority or enterprise or any person, aggrieved by any direction, decision or order referred to in clause (a) of section 53A may prefer an appeal to the Appellate Tribunal.”

This clause of Section 53B provides for the persons who can file an appeal before the Appellate Tribunal. According to it, when any direction, decision or order is passed as per Section 53A of the Act, the Central Government or the State Government or a local authority or enterprise or any person, if aggrieved, can file an appeal before the Appellate Tribunal.

Clause 2 of Section 53B

Section 53B(2) states that:

“Every appeal under Sub-section (1) shall be filed within a period of sixty days from the date on which a copy of the direction or decision or order made by the Commission is received by the Central Government or the State Government or a local authority or enterprise or any person referred to in that sub-section and it shall be in such form and be accompanied by such fee as may be prescribed:

Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of sixty days if it is satisfied that there was sufficient cause for not filing it within that period.”

This clause of Section 53B provides for the time limit within which the appeal shall be filed. According to this section, every appeal shall be filed within a period of sixty days from the date on which a copy of the direction or decision or order made by the commission is received by specified parties. It is also provided that the Appellate Tribunal if satisfied that the applicant was prevented by sufficient cause from filing the appeal shall be allowed to file the appeal after the expiry of the said period i.e., 60 (sixty) days.