2022 (9) TMI 1610 - HC - Indian Laws

Rejection of prayer for being impleaded as an informant in proceedings before the Commission - Section 26(1) of the Competition Act, 2002 - HELD THAT - The Court firstly bears in mind the undisputed fact that upon conclusion of investigation, the Director General has already submitted a report which is to be taken up by the Commission for consideration on 28 September 2022. Viewed in that light it is evident that the prayer of the petitioner to the extent that it sought to be impleaded in the investigation proceedings has rendered infructuous. The Court also notes that while rejecting the application for impleadment which was made on 07 December 2021 the Commission had taken into consideration the fact that the proceedings before the Director General were at an advanced stage of investigation . It was in that backdrop that the Commission had declined the request made by the petitioner here. The Court also notes that the petitioner cannot, strictly speaking, claim to have a direct interest in the investigation process especially when it only stood in the shoes of an informant. Both Regulations 21 as well as 25 provide an opportunity to parties to address all submissions before the Commission for its consideration. In view of the above, the Court finds that not only would it be open for the petitioner to apply to the Commission in terms of Regulation 25 and to seek a right to address submissions, it could also, if so chosen and advised, address a prayer for being provided a copy of the investigation report or the extracts thereof - the Court finds no justification to issue any peremptory directions except to observe that it would be open to the petitioner to move the Commission under Regulation 25 and to address all issues before the said body. Petition disposed off.

Issues Involved:
1. Impleadment of the petitioner as an informant in the ongoing investigation.
2. Right to receive a copy of the investigation report.
3. Alleged delay in raising the challenge by the petitioner.
4. Petitioner's right to participate in proceedings before the Commission.

Detailed Analysis:

1. Impleadment of the Petitioner as an Informant in the Ongoing Investigation:
The Builders Association of India approached the Court challenging the Competition Commission of India's (CCI) order dated 29 December 2021, which rejected its request to be impleaded as an informant in the ongoing investigation. The CCI noted that the investigation had commenced based on an order dated 01 July 2019 under Section 26(1) of the Competition Act, 2002, and the petitioner's application was made only on 07 December 2021, at an advanced stage of the investigation. The Court observed that the petitioner could not strictly claim a direct interest in the investigation process as it stood only as an informant. The CCI's decision to reject the impleadment was justified given the advanced stage of the investigation and the petitioner's lack of direct interest.

2. Right to Receive a Copy of the Investigation Report:
The petitioner argued that under Section 26(4) of the Act, the CCI is obliged to forward a copy of the Director General's report to the "parties concerned." The petitioner contended that without being impleaded, it would be deprived of the right to receive the investigation report and refute or challenge its findings. The Court noted that upon conclusion of the investigation, the Director General's report would be considered by the CCI, and it would be open to any party with a substantial interest to seek a right of audience before the Commission under Regulation 25 of the Competition Commission of India (General) Regulations, 2009.

3. Alleged Delay in Raising the Challenge by the Petitioner:
The respondent argued that the petitioner was guilty of inordinate delay, as the investigation had commenced in July 2019, and the petitioner sought intervention only in December 2021. The Court acknowledged the delay but noted that the petitioner's challenge was rendered infructuous as the investigation had already concluded, and the report was placed before the CCI for consideration.

4. Petitioner's Right to Participate in Proceedings Before the Commission:
The petitioner claimed that it had a right to participate in the proceedings before the CCI as an information provider. The Court referred to Regulation 25, which allows any person or enterprise with a substantial interest in the outcome of the proceedings to present their opinion and participate in further proceedings. The Court observed that the petitioner could still apply to the CCI under Regulation 25 to seek a right to address submissions and request a copy of the investigation report. The Court found no justification to issue peremptory directions but allowed the petitioner to move the CCI under Regulation 25.

Conclusion:
The Court disposed of the writ petition, reserving the petitioner's liberty to apply to the CCI under Regulation 25 before the next scheduled hearing on 28 September 2022. The CCI was directed to consider any such application in accordance with the law. All contentions of the respective parties on merits were kept open to be addressed before the Commission.

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