Draconian law

23 Nov, 2009

There has been a constant debate on the Competition Commission in the media recently. In a published letter a senior lawyer has said that:
"The competition law in its current form is simply draconian. This is not the appropriate forum to delve into the legal lacunae of this ordinance, nevertheless, it is important to point out that if this ordinance is passed into an act by the parliament, it will result in gross injustice."
It is quite obvious that the competition commission is a semi-judicial body, but it is being appointed by the bureaucracy without consultation or approval of the higher judiciary. In most countries, the Chairman and members of competition commission are appointed by a committee headed by the Chief Justice of Pakistan. The present competition ordinance provides for an appeal against the order of a single member of the commission before a tribunal consisting of two members of the commission itself. It will be judicious if all appeals are heard by a Chief Justice of High Court or a Judge of Supreme Court.
The competition commission has been constituted to protect the interests of the consumers and economy of the country. As already suggested by me that it is a semi-judicial body but it will be surprise for many to learn that the commission meets its expenditure from a fund known as CCP Fund.
The section 20(1) of the ordinance reads:
"There shall be established a fund to be known as the "CCP Fund", which shall vest in the Commission and shall be utilised by the Commission to meet charges in connection with the functioning of the Commission including payment of salaries and other remuneration to the Chairman, members, officers, officials, experts, advisers, and consultants of the Commission."
The fines and penalties are therefore a source of income of the commission to meet its expenditure including salaries of Chairman and members. No judicial or semi-judicial body is financed by penalties levied and realise from the business community.

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