Contravention by companies
Section 48 of the Competition Act, 2002 deals with contravention by companies. [48. Contravention by companies.]--(1) Where a person committing contravention of any of the provisions of this Act or of any rule, regulation, order made or direction issued thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible The Act came into force on 31 Mar 2003.
1[48. Contravention by companies.]--(1) Where a person committing contravention of any of the provisions of this Act or of any rule, regulation, order made or direction issued thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be in contravention of this Act and unless otherwise provided in this Act, the Commission may impose such penalty on such persons, as it may deem fit which shall not be more than ten per cent. of the average of the income for the last three preceding financial years:
Provided that in case any agreement referred to in sub-section (3) of section 3 has been entered into by a cartel, the Commission may unless otherwise provided in this Act, impose upon such persons referred to in sub-section (1), a penalty of up to ten per cent. of the income for each year of the continuance of such agreement.
(2) Nothing contained in sub-section (1) shall render any such person liable to any penalty if he proves that the contravention was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such contravention.
(3) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, regulation, order made or direction issued thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officers of the company, such director, manager, secretary or other officers shall also be deemed to be in contravention of the provisions of this Act and unless otherwise provided in this Act, the Commission may impose such penalty on such persons, as it may deem fit which shall not be more than ten per cent. of the average of the income for the last three preceding financial years:
Provided that in case any agreement referred to in sub-section (3) of section 3 has been entered into by a cartel, the Commission may, unless otherwise provided under this Act, impose upon such person a penalty as it may deem fit which shall not exceed ten per cent. of the income for each year of the continuance of such agreement.
Explanation.--For the purposes of this section,--
(a) "company" means a body corporate and includes a firm or other association of individuals;
(b) "director", in relation to a firm, means a partner in the firm;
(c) "income", in relation to a person, shall be determined in such manner as may be specified by regulations].
Section 48, The Competition Act, 2002 (Act 12 of 2003).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 2
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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National Engineering Industries Limited vs Competition Commission of India, ANR
Court's Decision & Legal Precedent
The Court set aside a Section 48 notice and the order refusing to recall it, holding that where neither the Director General's main report nor the supplementary report contains any adverse finding against the noticee, the CCI could not even have reached a prima facie conclusion that the person violated the Act or was liable to be proceeded against under Section 48; the paragraph relied on merely recorded a commercial relationship.
On this section: Fixes the evidentiary threshold for a Section 48 show-cause notice: the CCI must point to material in the DG's report supporting a prima facie finding against that particular person, and a notice issued without it is amenable to Article 226 relief.
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Anurag Rastogi Prinicipal Secretary, Irrigation, Government of Haryana, Ors. vs Competition Commission of India, Anr.
Court's Decision & Legal Precedent
Following the Division Bench in Cadila Healthcare Ltd. v. CCI (LPA 160/2018), the Court refused to accept that proceedings against individuals under Section 48 can only follow a final order under Section 27, and declined to stay the CCI's investigation into the role of the officers or its direction that they produce their income-tax returns, leaving all contentions open for the final order stage.
On this section: Holds that the CCI may investigate an individual's role under Section 48 before any final Section 27 finding is recorded against the enterprise, and expressly doubts the view that Section 48 cannot be invoked against public servants.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… the respondent no. 1 was pleased to order further investigation on the Suo Moto Case No. 07(2) of 2014 alleging cartelisation in the supply of Bearings (Automotive and Industrial) to the Original Equipment Manufacturers (OEMs). By the Impugned Order dated 29.08.2019, the respondent no. 1 issued notice under Section 48 of the Competition Act, 2002 ('Act') inter alia against the petitioner purportedly based on the Reports submitted by the Director General, directing the petitioner to furnish their financial statements for the Financial Years 2009-2010 till 2011- 2012. 4. By the Impugned Order dated 28.11.2019, the respondent …
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… The petitioner being a public servant, in any event, is required to maintain transparency regarding their financial affairs. 7. Mr Gaggar, learned counsel appearing for the petitioner states that the CCI, in other matters, has taken a view that proceedings under Section 48 of the Competition Act, 2002 are not required to be taken against public servants. This Court has certain reservations regarding the said proposition. However, it is not necessary to examine the same in this petition as it is open for the petitioners to advance the said contention before the CCI. 8. In view of …
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
Questions about Section 48
What have the courts held on Section 48 of the Competition Act?
National Engineering Industries Limited vs Competition Commission of India, ANR (25 Feb 2020) is the leading judgment on this section among those set out below: Fixes the evidentiary threshold for a Section 48 show-cause notice: the CCI must point to material in the DG's report supporting a prima facie finding against that particular person, and a notice issued without it is amenable to Article 226 relief. Another 1 judgment on this section is set out below. They run from 2019 to 2020.
How do I find court cases under Section 48 of the Competition Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Competition Act 48, section 48 Competition Act, section 48 of the Competition Act. People searching for it also type section 48a competition act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with National Engineering Industries Limited vs Competition Commission of India, ANR (25 Feb 2020).
What should I read with Section 48 of the Competition Act, and has it changed?
Its own text turns on section 3 (Anti-competitive agreements), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. 2 instruments name it without being made under it, most recently The Competition Commission of India (Lesser Penalty) Amendment Regulations, 2017 (2017), then CCI (Lesser Penalty) Regulations, 2009 (No. 4 of 2009) (2009).
When did Section 48 of the Competition Act come into force?
Section 48 of the Competition Act, cited as Competition Act 48, came into force on 31 Mar 2003, having been enacted on 13 Jan 2003. It is in force as at the date shown on this page.
Other sections of this Act
- 66. Repeal and saving1683 words
- 2. Definitions1390 words
- 5. Combination1317 words
- 6. Regulation of combinations920 words
- 3. Anti-competitive agreements850 words
- 26. Procedure for inquiry under section 19788 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 19 Oct 2026. This page is not a substitute for legal advice.