Amalgamation of companies

Querist : Anonymous (Querist) 13 August 2011 This query is : Resolved
amalgamation of companies is carried out under sec 391 and 394 of the companies act

but under the competition act 2002 amalgamations which would adversely affect the market are void so companies have to get their scheme of amalgamation ratified by the competition commmision.

if the commisison rejects the scheme of amalgamation can the hc carry forward with it on the basis that it is superior to the competetion commision and can overrule its descisions or does it not have jurisdiction to do so?

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R.Ramachandran (Expert) 13 August 2011
All the amalgamation and mergers are not under the CCI scanner.
Only those amalgamations and mergers, which cross the threshold limits prescribed, and which in the considered view of the CCI would get hit. Even here, CCI would be giving opportunity to the parties to present their case. It is only after going through the reply of the parties that the CCI would give a decision. If the CCI's decision is not in favour one can definitely can make an appeal to the other judicial fora like HC / SC as the case may be.
Thus, the judicial review of the decision of the CCI cannot be taken away altogether under any circumstances.

Raj Kumar Makkad (Expert) 13 August 2011
Ramachandran has rightly advised.

Querist : Anonymous (Querist) 14 August 2011
But the competition act under VIII provides for a competition appellate tribunal whose decision can be appealed to in the SC so shouldn't that be the first forum for appeal from the council?

R.Ramachandran (Expert) 14 August 2011
Exactly that is what I said, "If the CCI's decision is not in favour one can definitely can make an appeal to the other judicial fora like HC / SC as the case may be."
If the other judicial fora is Competition Appellate Tribunal and then SC, so be it.

In short, the answer to your question "can the hc carry forward with it on the basis that it is superior to the competetion commision and can overrule its descisions or does it not have jurisdiction to do so", the answer is a simple "NO".

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