NATIONAL COMPANY LAW APPELLATE TRIBUNAL (NCLAT)

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Context

• The National Company Law Appellate Tribunal (NCLAT) upheld the ₹1,337 crore fine imposed on Google by the Competition Commission of India (CCI).

What did the NCLAT find Google guilty of?

• NCLAT’s order has largely confirmed CCI’s other findings from October 2022 that said Google abused its market dominance in the Android ecosystem.
• It held that mandating pre-installation of its entire Google Mobile Suite (GMS) – a family of key Google apps and services such as Google search, Chrome browser, YouTube, Google Maps, and Gmail – amounted to an abuse of dominant position” by the company.
• NCLAT held that the CCI in its order against Google did not violate the principles of “natural justice” and based it on relevant material submitted to it. Note: NCLAT had imposed a fine of ₹1,337 crores on Google.

IMPORTANT ARTICLE:

COMPETITION (AMENDMENT) BILL, 2022: https://www.iasgyan.in/daily-current-affairs/the-competition-amendment-bill-2022

Competition Commission of India (CCI)

About

• The Competition Commission of India(CCI) is the chief national competition regulator in India.

Establishment

• The commission was established on 14 October 2003. It became fully functional in May 2009.

Ministry

• It is a statutory body within the Ministry of Corporate Affairs and is responsible for enforcing the Competition Act, 2002.

Aim and Objective

• It aims to promote competition and prevent activities that have an appreciable adverse effect on competition in India.

Mandate

 It is a quasi-judicial body tasked with the following duties:

1. Prevent practices that have a negative effect on competition.
2. Encourage and maintain market competition.
3. Safeguard the interests of all consumers.
4. Safeguard commercial liberty.
5. Investigate problems related to or ancillary to trade.

Read all about NCLT: https://www.iasgyan.in/daily-current-affairs/national-company-law-tribunal

Read all about IBC: https://www.iasgyan.in/daily-current-affairs/insolvency-and-bankruptcy-code-ibc-2016

National Company Law Appellate Tribunal (NCLAT)

About

• NCLAT is the Appellate Tribunal to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India (CCI).

Establishment

• The tribunal was formed as appellate authority to the aggrieved persons against the orders of National Company Law Tribunal which were passed under Section 61 of the Insolvency and Bankruptcy Code, 2016.
• National Company Law Appellate Tribunal was formed on 1 June 2016 by the Central Government under Companies Act'2013.

Ministry

• The NCLAT was formed as a body with an appellate jurisdiction at the same time when NCLT was established as a major reform as per powers granted to the Ministry of Corporate Affairsin India.

Mandate

• The tribunal is responsible for hearing appeals from the orders of National Company Law Tribunal(s) (NCLT), starting on 1 June 2016.
• The tribunal also hears appeals from orders issued by the Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.
• It also hears appeals from any direction issued, decision made, or order passed by the Competition Commission of India(CCI) and the National Financial Reporting Authority (NFRA).

Benches

• National Company Law Appellate Tribunal has principle bench in Delhi and other one in Chennai.

Second Appeal

• The decisions of National Company Law Appellate Tribunal are appealable in Supreme Court of India.

Structure of NCLAT

• The NCLAT includes a Chairperson, 3 judicial members, and 2 technical members.
• It consists of a total of not more than eleven members.

Qualifications for Judicial member at National Company Law Appellate Tribunal:

• Should be of 50 years old.
• Served at least 5 years as District Judge or High Court Judge or has a minimum 10 years’ experience serving in any judicial authority.

Qualifications for Technical member at National Company Law Appellate Tribunal:

• Should be of 50 years old.
• Any person practicing as a chartered Accountant, cost accountant or company secretary for a period of 15 years.
• Any person holding the rank of Secretary or Additional Secretary to the central government and is a member of the Indian Corporate Law Service or Indian Legal Service for more than 15 years.

Powers and functions

Following are the powers and functions of National Company Law Appellate Tribunal.

• Hear appeals against orders issued by Competition Commission of India (CCI).
• Hear appeals against orders issued by Insolvency and Bankruptcy Board of India.

PRELIMS PRACTICE QUESTION Q. Which of the following statements are correct with reference to NCLT and NCLAT? a)       National Company Law Tribunal is a quasi-judicial body that adjudicates issues relating to Indian companies and it was formed on the recommendations of Kelkar committee. b)      The decisions of National Company Law Appellate Tribunal are appealable in the Supreme Court of India. c)       The NCLAT was formed as a body with an appellate jurisdiction at the same time when NCLT was established as a major reform as per powers granted to the Finance Ministry in India. d)      NCLAT hears appeals from any direction issued, decision made, or order passed by the Competition Commission of India (CCI) and the National Financial Reporting Authority (NFRA). 1. a and b 2. b and d 3. a, b and d 4. b, c and d Correct Answer: 2

 

https://indianexpress.com/article/explained/explained-sci-tech/nclat-penalty-google-cci-case-explained-8527495/