Power of CCI to regulate legal representation: Delhi HC issues notice in challenge

The Delhi High Court has issued notice in a petition by Tranter India Private Limited, challenging the constitutional validity of Regulations 46, 46A of CCI (General) Regulations, 2009 which empower the Competition Commission of India to regulate legal representation and also debar legal representatives for ‘misconduct’..The Petition also challenges the constitutional validity of Section 48 of the Competition Act, 2002, pursuant to which penalties on directors/officers of the erring companies are being imposed by the Competition Commission..Proviso to Regulation 37(1), which states that the inspection of ‘internal documents’ shall not be allowed to a party, has also been challenged in the writ petition..Notice was issued to the Central Government and the Competition Commission of India by a Division Bench of Chief Justice DN Patel and C Hari Shankar..Tranter India Private Limited (Petitioner) moved the High Court after it was denied legal representation before the Director General and was also refused access to documents relied upon by the Director General under Regulation 20(4) of the CCI (General) Regulations, 2009..The Petitioner’s grievance is also directed against the initiation of Section 48 proceedings against its directors..The Petitioner has submitted that Section 48 was being used by CCI to impose monetary penalties on personal income tax returns of directors, officers of a company, if such company is found to be in violation of the Competition Act. .The Petitioner has contended that Section 48 is inter-alia vague and arbitrary and therefore, should be struck-down..As far as Regulations 46 and 46A of the CCI General Regulations are concerned, the Petitioner has assailed them on the ground that a statutory authority like CCI that did not have the power to regulate ‘advocates’ under its parent statute and thus, could not arrogate to itself such a power by way of a regulation framed by it..It is added that since the conduct/misconduct of advocates including right of legal representation is governed by the Advocates Act, 1961, Regulations 46 and 46A of CCI General Regulations are ultra vires the Competition Act and are liable to be struck down..The Court has granted four weeks’ time to the Centre and CCI to file its response to the petition..The Petitioner was represented by Senior Advocate Krishnan Venugopal with Indus Law Partners Rahul Goel, Anu Monga and Advocates Ankush Walia, Parnimita Pal..CCI was represented by Advocates Samar Bansal, Devahuti Pathak..Centre was represented by ASG Maninder Acharya with Standing Counsel Harish Vaidyanathan Shankar and Advocate Viplav Acharya..The matter would be heard next on May 5..Read the Order: