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TMI Blog2018 (11) TMI 1969X X X X Extracts X X X X X X X X Extracts X X X X ..... ieved / affected parties cannot claim a right to notice or hearing at this stage. The subject provision does not contemplate any adjudicatory action on the part of the Commission. The Commission is not expected to give notice to the parties and hear them at length. It is of a very preliminary nature. There are no merit in the appeal, and the same is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of the appellant before the learned Single Judge that it was incumbent upon the CCI to exercise such powers and form a prima facie view after conducting due enquiry. 4. Suffice it to state that the learned Single Judge has in paras 7 and 8 held as under to dismiss the writ petition: "7. This Court is not persuaded to accept any of the contentions advanced by the learned counsel on behalf of the petitioner. As explained by the Supreme Court in Competition Commission of India v. Steel Authority of India Ltd. and Anr.: (2010) 10 SCC 744, the order passed by the CCI under Section 26(1) is, essentially, an administrative order and akin to a direction from one wing of the department to another. Under Section 26(1) of the Act, CCI can at best direct investigation and this does not amount to an adjudicatory function. The court had further observed as under: "92....The investigation is directed with dual purpose: (a) to collect material and verify the information, as may be, directed by the Commission, (b) to enable the Commission to examine the report upon its submission by the Director General and to pass appropriate orders after hearing the parties concerned. No inquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmission, upon receiving any information alleging violation of the Act, must first satisfy itself and express an opinion that a prima facie violation exists, from the record produced before it, and thereafter pass a direction to the Director General to cause an investigation to be made into the matter. It is his submission that the judgement relied upon by the learned Single Judge itself makes it manifestly clear that the Commission must first apply its mind to the material on record, ascertaining the authenticity and accuracy of the material supplied along with the information/reference, before forming a prima facie opinion. According to him, formation of a prima facie opinion is sine qua non for directing the Director General to conduct an investigation. 8. We are not in agreement with the submissions made by Mr. Sethi. On a perusal of the judgment of the Supreme Court in Competition Commission of India (supra), the Supreme Court in paras 21, 38 and 91, has held as under: "21. The informant, i.e. the person who wishes to complain to the Commission constituted under section 1 of the Act, would make such information available in writing to the Commission. Of course, such informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application of audi alteram partem is not called for. Formation of a prima facie opinion departmentally (Director General, being appointed by the Central Government to assist the Commission, is one of the wings of the Commission itself) does not amount to an adjudicatory function but is merely of administrative nature. At best, it can direct the investigation to be conducted and report to be submitted to the Commission itself or close the case in terms of Section 26(2) of the Act, which order itself is appealable before the Tribunal and only after this stage, there is a specific right of notice and hearing available to the aggrieved/affected party. Thus, keeping in mind the nature of the functions required to be performed by the Commission in terms of Section 26(1), we are of the considered view that the right of notice of hearing is not contemplated under the provisions of Section 26(1) of the Act." 9. From the reading of the aforesaid the following position of law emerges: 1. Upon receiving the information from any person including Central Government, State Government, Statutory Authority or on its own knowledge under Section 19 (1)(a) of the Act, the commission is expected t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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