Section 53N of CA, 2002 : Section 53N: Awarding Compensation

Explanation using Example

Imagine a scenario where a large corporation has been found guilty by the Competition Commission of India (CCI) for engaging in anti-competitive practices such as price fixing. As a result, several small businesses have suffered losses because they were unable to compete with the artificially low prices set by the corporation.

One of the affected small business owners learns about the decision of the CCI and believes they are entitled to compensation for the losses incurred due to the corporation's illegal activities. They decide to apply for compensation under Section 53N of the Competition Act, 2002.

The small business owner gathers all necessary documents, including the findings of the CCI that confirm the corporation's contravention of Chapter II of the Act. They then file an application with the prescribed fee to the Appellate Tribunal, seeking compensation for the damage suffered.

The Appellate Tribunal reviews the application and conducts an inquiry into the allegations. After considering the extent of the losses and the impact of the anti-competitive behavior on the small business, the Tribunal orders the corporation to pay a specified amount as compensation to the small business owner.

This example illustrates how Section 53N of the Competition Act, 2002, enables victims of anti-competitive practices to seek and potentially receive compensation for the harm they have endured.