Section 42 of CA, 2002 : Section 42: Contravention Of Orders Of Commission

Explanation using Example

Imagine a company, XYZ Corp, has been investigated by the Competition Commission of India (CCI) for engaging in anti-competitive practices such as price-fixing. After the investigation, the CCI orders XYZ Corp to cease these practices and imposes certain measures to ensure fair competition in the market. Despite the order, XYZ Corp continues with its price-fixing activities.

The CCI discovers the non-compliance during a follow-up inquiry and decides to enforce Section 42 of the Competition Act, 2002. XYZ Corp is now facing a daily fine of up to one lakh rupees for each day the non-compliance continues, with a maximum penalty of ten crore rupees. If XYZ Corp still does not comply and fails to pay the fine, the Chief Metropolitan Magistrate of Delhi may take further action, which could include imprisonment of XYZ Corp's responsible officials for up to three years, an additional fine of up to twenty-five crore rupees, or both.