The Competition Act, 2002 · IV — DUTIES, POWERS AND FUNCTIONS OF COMMISSION

Section 21. Reference by statutory authority

In force · As amended up to 2026-08

21. Reference by statutory authority. —(1) Where in the course of a proceeding before any statutory authority an issue is raised by any party that any decision which such statutory authority has taken or proposes to take, is or would be, contrary to any of the provisions of this Act, then such statutory authority may make a reference in respect of such issue to the Commission: 1[Provided that any statutory authority, may, suo motu , make a reference to the Commission on any issue that involves any provision of this Act or is related to promoting the objectives of this Act, as the case may be.] 2[(2) On receipt of a reference under sub-section (1), the Commission shall give its opinion, within sixty days of receipt of such reference, to such statutory authority which shall consider the opinion of the Commission and thereafter, give its findings recording reasons therefor on the issues referred to in the said opinion.] 3[21A. Reference by Commission. —(1) Where in the course of a proceeding before the Commission an issue is raised by any party that any decision which, the Commission has taken during such proceeding or proposes to take, is or would be contrary to any provision of[4] [an Act] whose implementation is entrusted to a statutory authority, then the Commission may make a reference in respect of such issue to the statutory authority: 5[Provided that the Commission, may, suo motu , make a reference to a statutory authority on any issue that involves provisions of an Act whose implementation is entrusted to that statutory authority.] (2) On receipt of a reference under sub-section (1), the statutory authority shall give its opinion, within sixty days of receipt of such reference, to the Commission which shall consider the opinion of the statutory authority, and thereafter give its findings recording reasons therefor on the issues referred to in the said opinion.] 6[22. Meetings of Commission. —(1) The Commission shall meet at such times and such places, and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be provided by regulations. (2) The Chairperson, if for any reason, is unable to attend a meeting of the Commission, the senior-most Member present at the meeting, shall preside at the meeting. 1. Subs. by Act 9 of 2023, s. 16, for the proviso (w.e.f. 18-5-2023). 2. Subs. by Act 39 of 2007, s. 15, for sub-section (2) (w.e.f. 20-5-2009). 3. Ins. by s. 16, ibid . (w.e.f. 20-5-2009). 4. Subs. by Act 9 of 2023, s. 17, for "this Act" (w.e.f. 18-5-2023). 5. Subs. by s. 17, ibid ., for the proviso (w.e.f. 18-5-2023). 6. Subs. by Act 39 of 2007, s. 17, for section 22 (w.e.f. 12-10-2007). (3) All questions which come up before any meeting of the Commission shall be decided by a majority of the Members present and voting,[1] *: Provided that the quorum for such meeting shall be three Members.] 23 . [ Distribution of business of Commission amongst Benches .] Omitted by the Competition (Amendment) Act , 2007 (39 of 2007), s . 18 ( w.e.f. 12-10-2007)]. 24 . [ Procedure for deciding a case where Members of a Bench differ .] Omitted by s . 18, ibid. ( w.e.f. 12-10-2007)]. 25 . [ Jurisdiction of Bench . ] Omitted by s . 18, ibid. ( w.e.f. 12-10-2007)]. 2[ 26 . Procedure for inquiry under section 19. —(1) On receipt of a reference from the Central Government or a State Government or a statutory authority or on its own knowledge or information received under section 19, if the Commission is of the opinion that there exists a prima facie case, it shall direct the Director General to cause an investigation to be made into the matter: Provided that if the subject matter of an information received is, in the opinion of the Commission, substantially the same as or has been covered by any previous information received, then the new information may be clubbed with the previous information. (2) Where on receipt of a reference from the Central Government or a State Government or a statutory authority or information received under section 19, the Commission is of the opinion that there exists no prima facie case, it shall close the matter forthwith and pass such orders as it deems fit and send a copy of its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be. 3[(2A) The Commission may not inquire into agreement referred to in section 3 or conduct of an enterprise or group under section 4, if the same or substantially the same facts and issues raised in the information received under section 19 or reference from the Central Government or a State Government or a statutory authority has already been decided by the Commission in its previous order.] (3) The Director General shall, on receipt of direction under sub-section (1), submit a report on his findings within such period as may be specified by the Commission. 3[(3A) If, after consideration of the report of the Director General referred to in sub-section (3), the Commission is of the opinion that further investigation is required, it may direct the Director General to investigate further into the matter. (3B) The Director General shall, on receipt of direction under sub-section (3A), investigate the matter and submit a supplementary report on his findings within such period as may be specified by the Commission.] (4) The Commission may forward a copy of the report referred to in[4] [sub-sections (3) and (3B)] to the parties concerned: Provided that in case the investigation is caused to be made based on reference received from the Central Government or the State Government or the statutory authority, the Commission shall forward a copy of the report referred to in[4] [sub-sections (3) and (3B)] to the Central Government or the State Government or the statutory authority, as the case may be. (5) If the report of the Director General referred to in[4] [sub-sections (3) and (3B)] recommends that there is no contravention of the provisions of this Act, the Commission shall invite objections or suggestions from the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be, on such report of the Director General. (6) If, after consideration of the objections or suggestions referred to in sub-section (5), if any, the Commission agrees with the recommendation of the Director General, it shall close the matter forthwith and pass such orders as it deems fit and communicate its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be. 1. The words "and in the event of equality of votes, the Chairperson or in his absence, the Member presiding, shall have a second or casting vote" omitted by Act 9 of 2023, s. 18 (w.e.f. 18-5-2023). 2. Subs. by Act 39 of 2007, s. 19, for section 26 (w.e.f. 20-5-2009). 3. Ins. by Act 9 of 2023, s. 19 (w.e.f. 18-5-2023). 4. Subs. by s. 19, ibid ., for "sub-section (3)" (w.e.f. 18-5-2023). (7) If, after consideration of the objections or suggestions referred to in sub-section (5), if any, the Commission is of the opinion that further investigation is called for, it may direct further investigation in the matter by the Director General or cause further inquiry to be made in the matter or itself proceed with further inquiry in the matter in accordance with the provisions of this Act. (8) If the report of the Director General referred to in[1] [sub-sections (3) and (3B)] recommends that there is contravention of any of the provisions of this Act, and the Commission is of the opinion that further inquiry is called for, it shall inquire into such contravention in accordance with the provisions of this Act.] 2[(9) Upon completion of the investigation or inquiry under sub-section (7) or sub-section (8), as the case may be, the Commission may pass an order closing the matter or pass an order under section 27, and send a copy of its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be: Provided that before passing such order, the Commission shall issue a show-cause notice indicating the contraventions alleged to have been committed and such other details as may be specified by regulations and give a reasonable opportunity of being heard to the parties concerned.]

Source: India Code