Competition Commission of India Vs Steel Authority of India Ltd. & Anr. (Supreme Court of India)
Background and Statutory Scheme
The appeal before the Supreme Court arose under the Competition Act, 2002, enacted after India’s economic liberalisation to promote fair competition, prevent anti-competitive agreements and abuse of dominant position, regulate combinations, and protect consumer interests. The judgment traces the evolution of competition law in India and abroad, referring to developments in the United States, the United Kingdom and other jurisdictions, before explaining the legislative intent behind the enactment of the Competition Act, 2002.
The Court noted that the Competition Commission of India (CCI) is vested with inquisitorial, investigative, regulatory, adjudicatory and limited advisory functions. Under the statutory framework, the Commission investigates alleged contraventions relating to anti-competitive agreements, abuse of dominant position and combinations having an appreciable adverse effect on competition. The Director General functions as the specialised investigative wing of the Commission. The Court emphasised that the Act contemplates expeditious disposal of proceedings so that delays do not frustrate the objective of maintaining free and fair competition in the market.
Material Facts
Jindal Steel & Power Ltd. (the informant) filed information before the Competition Commission under Sections 19 and 26(1) of the Competition Act alleging that Steel Authority of India Ltd. (SAIL) had entered into an exclusive supply arrangement with Indian Railways for supply of rails. According to the informant, SAIL had abused its dominant position and acted contrary to Sections 3(4) and 4(1) of the Competition Act.
