Palak Jain 09 March 2021
Ishaan 09 March 2021
Section 2(H) of the competition act 2002 define the term enterprise.
"enterprise” means a person or a department of the Government, who or which is, or has been, engaged in any activity, relating to the production, storage, supply, distribution, acquisition or control of articles or goods, or the provision of services, of any kind, or in investment, or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate, either directly or through one or more of its units or divisions or subsidiaries, whether such unit or division or subsidiary is located at the same place where the enterprise is located or at a different place or at different places, but does not include any activity of the Government relatable to the sovereign functions of the Government including all activities carried on by the departments of the Central Government dealing with atomic energy, currency, defence and space.
The High court of Delhi recently held that the Indian railways is an 'enterprise' and the competition Commission of India (CCI) is empowered to hear complaints against it for alleged abuse of its dominant position in goods transport sector.
It was argued that the petitioner (ministry of railways) is also carrying out an activity of running the railways, which has a commercial angle and is capable of being carried out by entities other than the state as is the case in various developed countries. The court also held in the case that - “The exemption under the Competition Act could be granted in relation to the activities relatable to sovereign functions of the government, and not in relation to all the activities of such an enterprise."
Case - M/S Mineral Enterprises Limited vs Ministry Of Railways, Union Of India
(Case No. 47 of 2012) of CCI
Kevin Moses Paul 09 March 2021
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