Delhi High Court Order in DLF v CCI: Another Boost-up for CCI

In another significant order, the Delhi High Court has dismissed the bunch of writ petitions filed by DLF Ltd. and its related entities against the orders of CCI under Sections 26(1) and 33 of the Competition Act. Pursuant to the judgement of Supreme Court in CCI v SAIL, an order of CCI under section 26(1) directing the Director General to cause an investigation into a matter cannot be appealed before the Appellate Tribunal. Therefore, interested parties seek to challenge such order under Section 26(1) of the Competition Act before writ courts under Article 226 of the Constitution.

As with any new regulator, CCI is facing opposition from all quarters in establishing its authority by way of legal challenges against its actions and jurisdictional powers. While it may be frustating for CCI and proponents of free and fair competition, it is also gradually crystallizing the authority of CCI in the legal space. The recent order of Justice S Muralidhar is another feather in the cap for CCI. The Court dismissed the plea of the petitioner that order of CCI forming prima facie opinion is inconsistent with the requirements of law. Since, the interim order of CCI under Section 33 has been already appealed before the Appellate Tribunal, the Court, rightly, abstained from entertaining the issue.

The final order of CCI in DLF case is much awaited. As per some reports in media, it seems that the Director General has found DLF's actions against the provisions of the Competition Act. This blog is closely watching all these developments. It would be interesting to see how CCI treats the report of the Director General and findings against DLF!