Case Law Details
Institute of Chartered Accountants of India Vs Competition Commission of India (Delhi High Court)
Delhi High Court held that it is outside the jurisdiction of the Competition Commission of India (CCI) to compel a statutory body (ICAI) to outsource organization of CPE seminars, workshop or conferences.
Facts- The Institute of Chartered Accountants of India (ICAI) has filed the present petition, inter alia, impugning an order dated 28.02.2014 (the impugned order) passed by the Competition Commission of India (the CCI) u/s. 26(1) of the Competition Act, 2002 (the Competition Act), whereby the CCI has directed the Director General (DG) to conduct an investigation into the matter relating to the Continuing Professional Education (CPE) program being conducted by ICAI. ICAI, as a part of its functions, has framed the CPE program, which requires its members to continue to keep themselves abreast of professional developments and skills by participating in educational activities related to the profession on a continuous basis.
Conclusion- It is important to note that the CCI’s power is for regulating of markets; it does not extend to addressing any grievance regarding arbitrary action by any statutory authority. In the present case, the CCI has proceeded on the basis that there is a relevant market “for organising recognised CP Seminars/Workshops/ Conferences”. Clearly, the said view is erroneous. There is no market for organising CPE seminars, workshop or conferences. As noticed above, ICAI is charged with the function of maintaining professional standards and it conducts the educational program for structured CPE Credits, in-house or through its organs. Thus, in essence, the Informant seeks that the said function be outsourced. Such outsourcing would create a market as the other entities would be entitled to participate as market players in that market.
This Court is unable to accept that the jurisdiction of the CCI extends to compelling a statutory body to outsource functions that it performs in discharge of its statutory duties notwithstanding that the same may fall within the sphere of economic activity. It would be erroneous to assume that if any activity falls within the broad definition of economic activity, it would be necessary to create an open market for the same. This Court is unable to accept that the CCI can compel an organisation or an enterprise to outsource its activities.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
