I.D.
END TERM EXAMINATION, NOVEMBER 2017
B.A.LL.B. (HONS.)
SEMESTER-VII IX
Competition Law (Optional-I)
Max. Marks: 60 Time Allowed: 3:00 Hrs.
Note: Answer five questions including Question No. 1 which is compulsory. The number of marks carried by
each question is indicated at the end of the question.
1. Answer the following (each answer should be in approximately 100 words): (Marks 2×10=20)
Give a brief note on the following:
a. There are 10 firms in a market with unequal market shares as:
Firm 1 2 3 4 5 6 7 8 9 10
Market
Share
10 25 5 8 7 5 10 15 5 10
Calculate the Herfindahl-Hirschman Index and identify the market in terms of
concentration.
b. Discuss Resale Price Maintenance and its relevance
c. Define Predatory Pricing
d. Discuss the penalty in contravention of orders of commission as provided under section 42
of the Competition Act, 2002
e. 'Consumer' under the Competition Act, 2002
f. Application of 'Rule of Reason' under Indian Competition Law
g. Leniency provision under the Competition Act, 2002.
h. 'Exclusive Supply Agreements' under the Competition Act, 2002
i. Principle of Counterfactual
j. Doctrine of 'Cease and desist' under Competition Law
2. The model of perfect competition is based on assumptions unlikely to be observed in practice.
Discuss.
Discuss the Efficiency as one of the basic objective of Competition Law. (Marks
3. "Principles of competition law have a long history since the Roman Empire and middle ages when
cartels, the so-called guilds, were formed in most European cities. It was also demonstrated in
19th century in U.S. antitrust law, U.K. Competition Law, EC Competition Law. A first prohibition
of contracts that restrain trade can be traced to English common law of the early fifteenth century.
The development of competition law has been started in Europe in the late 19th century as Canada
was the first country to formulate and adopt a competition policy in 1889 even before the Sherman
Act of the US but the Sherman Act of 1890 (US antitrust Legislation) is the oldest and perhaps
most important federal statute."
In the light of abovementioned paragraph discuss in detail the evolution of competition law in
United States and EU only. (Marks 10)
PTO
4. The Informant Western Coalfields Limited is one of the eight subsidiary companies of Coal India
Limited and has been conferred 'Miniratna' status. It has mining operations spread over the States
of Maharashtra (Nagpur, Chandrapur and Yeotmal districts) and Madhya Pradesh (Betul and
Chhindawara districts). It is a major supplier of coal to industries located in the States of
Maharashtra, Madhya Pradesh, Gujarat, Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. A
large number of power houses i.e. Electricity Boards in Maharashtra, Madhya Pradesh, Gujarat,
Karnataka, Punjab and Uttar Pradesh are the major customers of the Informant Western Coalfields
Limited along with cement, steel, chemical, fertilizers, paper and brick industries. The Opposite
Parties SSV Coal Carriers Pvt. Ltd, Bimal Kumar Khandelwal, Pravin Transport,
Khandelwal Transport, Khandelwal Earth Movers, Khanduja Coal Transport Co, Punya Coal Road
Lines, B Himmatlal Agrawal, Punjab Transport Co and Avaneesh Logistics Pvt. Ltd are engaged
in the business of providing ancillary services in colliery areas including of sand and coal
transportation in the areas of operation of the Informant. The instant information was filed
pursuant to four tenders floated by the Informant for coal and sand transportation. In these tenders,
bids were called in two parts: Part I for general eligibility criteria and Part II for price bids which
was to be opened only for bidders who qualify and were found eligible after scrutiny of their
respective Part I bid documents. For ease of reference, the details of the rates quoted by the OPs in
the abovementioned four impugned tenders are produced in a tabular form below:
Table No. Details of price quoted in Tender No. 1
Bidder
Rates Quoted (Rs. per cum.)
Job No. 1 Job No. 2 Job No. 3 Job No. 4
OP-1 173 168 29 25
OP-2 173 168 29 25
OP-3 Disqualified Disqualified Disqualified Disqualified
OP-4 173 168 29 25
Table No. Details of price quoted in Tender NO. 2
Bidder
Rates Quoted (Rs. per cum.)
Job No. 1 Job No. 1 Job No. 2
OP-1 175 175 35
OP-2 171 171 31
OP-3 171 171 31
OP-4 171 171 31
Table No. Details of price quoted in Tender No. 3
Bidder
Rates Quoted (Rs. per Te.)
Job No. 1 Job No. 2 Job No. 3 Job No. 4 Job No. 5
OP-5 26 25.70 39 45 8.35
OP-7 26 25.70 39 45 8.35
OP-8 26.51 26 40.46 46 9
OP-9 26 25.70 39 45 8.35
OP-10 26 25.70 39 45 8.35
Table No. Details of price quoted in Tender No. 4
Bidder
Rates Quoted (Rs. per Te.)
Job No. 1 Job No. 2 Job No. 3
OP-5 20 8.75 8.75
OP-6 20 8.75 8.75
OP-7 20 8.75 8.75
OP-8 21 9 9
The information in the present case was filed by the Informant under Section19 of the
Competition Act, 2002 against the Ops alleging contravention of the provisions of Section 3 of
the Act. The CCI had ordered a probe by its investigation arm Director General and the
report was submitted wherein it was concluded that the entities had indulged in anti-competitive agreement. Being the regulator identify if there is any contravention of Section 3 of the Competition Act, 2002? If yes, then on the basis of above-mentioned data only decide the matter with your reasoning. (Marks 10)

5. What do you understand by Abuse of Dominant Position? Discuss in the light of the Competition Act, 2002. Also explain the procedure for inquiry laid down in the Competition Act, 2002 in the cases of Abuse of Dominant Position with the relevant order which can be passed by the CCI in the contravention of Section 4 of the Competition Act, 2002. (Marks 10)

6. Competition is the best means of ensuring that the 'Common Man' or 'Aam Aadmi' has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. The objectives of the Act are sought to be achieved through the Competition Commission of India which has been established by the Central Government with effect from 14th October 2003.(http://www.cci.gov.in/about-cci) Analyze the above-mentioned paragraph and explain the establishment and composition of CCI and also mention the powers given to CCI under the Competition Act, 2002, to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India. (Marks 10)

7. Write a note on the following:- (Marks a. Regulation of combination as provided under Section 6 of the Competition Act, 2002 b. Briefly discuss the establishment of Competition Appellate Tribunal (COMPAT)