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CCI need not hear accused party before DG probe: HC

The Delhi High Court has held that the Competition Commission of India (CCI) does not have to issue a notice or give hearing to a party

The Delhi High Court has held that the Competition Commission of India (CCI) does not have to issue a notice or give hearing to a party against whom information or reference is received and an investigation has been initiated by the

Director-General.

Holding that a person against whom information is received cannot be placed on a higher footing than that of an accused in a criminal trial, Justice VK Jain said that an order of the CCI directing further investigation against a person does not ?visit the person with any civil consequences nor does it in any manner impair any legal right of such a person?.

“I find no merit in the contention that the procedure adopted by the commission would be rendered unfair or unreasonable or arbitrary in case no notice or hearing to the affected party is given before directing further investigation under subsection (7) of Section 26 of the Competition Act. In fact, even an accused in a criminal case is not entitled to a hearing before a magistrate passes an order for further investigation in exercise of the powers conferred upon him,” the judge said.

These observations were made by the High Court after South Asia LPG company moved it seeking to set aside an earlier order of the CCI.

As per the order, CCI had directed the DG to allow the informant company, East India Petroleum, to cross-question the witnesses of South Asia LPG.

South Asia LPG argued that it should remand the matter back to the CCI and both the parties should be heard before the commission takes a view.

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First published on: 05-09-2013 at 05:56 IST
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