Govt bound to ensure fair competition: CJI J S Khehar

He said the issue was not of private or public enterprise. “The extension of benefits to all constitutional principles is the duty of the governing political party.This has to be done without infringing fundamental and constitutional limits.” He said that was why the Competition Act, 2002, defines enterprise to mean a person or government.

Khehar referred to various Supreme Court judgements in cases like SEBI-Sahara, BCCI, Unitech and T N Godavarman matter, which dealt with environmental matters. He said these verdicts have “shown that Constitutional remedies are clearly available specially when the actions are adverse to public interest regardless of the legal form in which the business is carried on makes it private or public sector business”.

“The twin goals with the fundamental rights of fair, just and reasonable state conduct in management of political economy constitute boundaries of a host of laws including the control of monopolies and restrictive business practices.’’ Khehar outline the evolution of the Competition Act of 2002. “As with things human… economic development in India gave rise to an economic belief, working to the deterrent of development itself. India brought in the controlling legislation of MRTPC Act, 1969…The feeble markets of the 1950s had by the 1990 become major income and wealth production markets.”

He added this also gave rise to serious problems of non-transparent political management of resources. “There was a necessity to check on competition… to enable the fulfillment of the twin constitutional goals of subserving the common good and preventing common detriment. The answer was to replace the controls of Monopolies and Restrictive Trade Practices Act of 1969 by the Competition Regulation Act, 2002.’’