In Brief
The Supreme Court held that the Competition Commission need not issue a second show cause notice specifying the quantum of penalty before imposing penalties under the Competition Act. Furnishing the Director General's investigation report to parties and giving them an opportunity to file replies and be heard constitutes sufficient notice. The Court upheld penalties imposed on individuals in charge of the Kerala Film Exhibitors Federation for anti-competitive conduct (threatening film distributors not to supply films to a competing cinema). The Court emphasized that behavioural remedies on enterprises can include corollary directions barring individuals from management for a set period, and that proportionality—not prior notification of penalty—is the governing principle. The Court rejected claims that these penalties violated Article 19(1)(c), holding that the right to form associations is not absolute.
The lawyer headnote and full judgment text are available to registered users.