CAUSETITLE:
INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA V THE COMPETITION COMMISSION OF INDIA AND ORS.
DATE OF ORDER:
02-06-2023
JUDGE(S):.
MR JUSTICE VIBHU BAKHRU
PARTIES:
Petitioner:Institute Of Chartered Accountants Of India
Respondent:The Competition Commission Of India And Ors
Subject
The Delhi High Court ruled that the Competition Commission of India's authority is restricted to market regulation and does not extend to reviewing judgments made by statutory regulators in the exercise of their statutory powers.
Facts
The Institute of Chartered Accountants of India (hereafter 'ICAI') has filed the present petition, inter alia, to challenge an order dated 28.02.2014 (hereafter 'the impugned order') passed by the Competition Commission of India (hereafter 'the CCI') under Section 26(1) of the Competition Act, 2002 (hereafter 'the Competition Act'), in which the CCI directed the Director General (hereafter 'DG') to conduct an As part of its functions, the ICAI has developed the CPE program, which requires its members to stay current on professional innovations and abilities by participating in educational events relating to the profession regularly.
Analysis of court
- It is important to note that the jurisdiction does not extend to "addressing any grievance" over arbitrary conduct by any statutory authority:
- "The CCI has broad powers under the Competition Act, but this Courorganizationsept that those powers extend to examining all decisions made by statutory organisations or foreign governments that are unrelated to the Government's sovereign function." The investigation's scope must be restricted to only those economic activities that affect the market and involve businesses engaged in trade and commerce.
- The observations were made while setting aside an order issued by the CCI on February 28, 2014, instructing the Director General to launch an investigation into the matter relating to the Institute of Chartered Accountants of India's Continuing Professional Education (CPE) program.
- The court granted the ICAI's petition but rejected the CCI's assertion that it can compel an organization or firm to outsource its functions.
- The court ruled that ICAI's decision to create the CPE Programme to ensure professional standards could not be regarded as an abuse of its dominant position.
- The ICAI, which is responsible for upholding professional standards, runs the educational programme for structured CPE Credits either internally or through its organs, as was previously stated. The Informant essentially wants to contract out the aforementioned task. According to the court, "such outsourcing would result in a market because the other entities would be entitled to participate as market players in that market."
- The Competition Act does not authorize the CCI to operate as an appellate court or a grievance redressal body for decisions made by statutory regulators in the exercise of their statutory powers that are not related to trade or commerce.
- "A statutory body may make decisions involving trade and commerce in the course of its functions." As an example, the concerned entity could buy equipment and consumables or hire professionals. There is little doubt that any decision in this regard if it violates the terms of the Competition Act, will be reviewed by the CCI," the court stated.
- It further stated that the ICAI meets the criteria of statutory authority under Clause (w) of Section 2 of the Competition Act.
- "As a statutory body charged with making decisions regarding the conduct of the CPE program for enrolling as a chartered accountant as well as maintaining the profession's standards, the ICAI's decisions in this regard cannot be reviewed by the CCI." Such rulings have no application in any trade or commerce market. "Such decisions have no application in any market of trade and commerce," the court noted.
