Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2002 Competition Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Competition Act, 2002 – ss. 2(i), 2(u), 3, 4, 19(1)(a) & 26 – Lotteries (Regulation) Act, 1998 – Mizoram Lotteries (Regulation) Rules, 2011 – Jurisdiction of Competition Commission of India – State of Mizoram issued an Invitation for Expression of Interest (EOI), inviting bids for appointment of lotteries distributors and selling agents for State lotteries – In pursuance of EOI, bids were received and four companies were selected as distributors – Respondent No.4 made a complaint to the CCI, seeking investigation in respect of State lottery – Respondent alleged that the bidders had cartelised and entered into a collusive agreement that had an appreciable adverse effect on competition in the lottery business – CCI and Director General (DG) found prima facie evidence of cartelization and bid rigging by the bidders – However, CCI opined that no prima facie case was made out against the State and rejected the complaint – DG did make some observations against Director, IF&SL and the State of Mizoram to the effect that they ought to have been more vigilant in stopping unfair trade practices – High Court in writ petition filed by the State, held that lottery business being in the nature of res extra commercium could not be covered by the Competition Act – Consequently CCI did not have jurisdiction to entertain the complaint – On appeal, held: State, under a misconception, approached the High Court, possibly in an endeavour to defend one of its officers, respondent No. 2 whose conduct has not been very favourably commented on by the DG – Lotteries may be a regulated commodity and may even be res extra commercium – That would not takeaway the aspect of something which is anti-competition in the context of the business related to lotteries – The lottery business can continue to be regulated by the Regulation Act, however, if in the tendering process there is an element of anti-competition which would require investigation by the CCI, that cannot be prevented under the pretext of the lottery business being res extra commercium, more so when the State Government decides to deal in lotteries – There was really no need for the High Court to proceed in the manner and in the direction it sought to proceed – The correct approach, more so once the statement was made on behalf of the CCI, would have been to close the proceedings filed by the State Government and let the private parties face the ultimate decision of the CCI. |
Judge | Hon'ble Mr. Justice Sanjay Kishan Kaul |
Neutral Citation | 2022 INSC 64 |
Petitioner | Competition Commission Of India |
Respondent | State Of Mizoram & Ors. |
SCR | [2022] 13 S.C.R. 876 |
Judgement Date | 2022-01-19 |
Case Number | 10820 |
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