Sections 59A to 62 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 59A of the Competition Act, 2002 is a new section inserted by the Competition (Amendment) Act, 2023. It allows certain offences under the Act to be compounded by the Appellate Tribunal or by a court. Sections 60, 61 and 62, which the 2023 Act does not touch, say that the Act overrides inconsistent laws, that civil courts cannot decide matters assigned to the Commission or the Tribunal, and that the Act adds to, and does not displace, other laws.
An offence punishable under the Act can be compounded, before or after proceedings begin, by the Appellate Tribunal or by the court where the proceeding is pending, but not an offence punishable with imprisonment only or with imprisonment and also fine. The Act has overriding effect over inconsistent laws, civil courts have no jurisdiction over matters the Commission or the Tribunal can decide, and the Act is in addition to other laws.
How this article reads the Act
This article follows the consolidated text of the Act published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023. Section 59A has no counterpart in the consolidated text; it is written from the section inserted by clause 42 of the amending Act, "after section 59". The gazette does not print a chapter heading; read it as placed after Section 59. Sections 60 to 62 are as printed. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked. No commencement date is given. The Code of Criminal Procedure, 1973 is named in Section 59A as printed; check the current law for the corresponding provision. If you face a prosecution under the Act, our legal dispute resolution team can advise.
Section 59A: compounding of certain offences
The heading in the gazette is "Compounding of certain offences". The text reads: "Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence punishable under this Act, not being an offence punishable with imprisonment only or imprisonment and also with fine, may either before or after the institution of any proceeding, be compounded by the Appellate Tribunal or a court before which such proceeding is pending."
Reading the sentence in parts:
- "Notwithstanding anything contained in the Code of Criminal Procedure, 1973" means Section 59A applies despite what that Code says about compounding. The sources do not say what the Code provides, and none is explained here.
- "any offence punishable under this Act" is the general class.
- "not being an offence punishable with imprisonment only or imprisonment and also with fine" is the exclusion. An offence of those two kinds cannot be compounded.
- "either before or after the institution of any proceeding" means compounding may happen early or late.
- "by the Appellate Tribunal or a court before which such proceeding is pending" names who can compound. The Appellate Tribunal is the first named.
Which offences are caught?
The sources do not list the offences that can be compounded under this section, and the gazette text does not say how the exclusion applies to each offence. The Act's offences with a custodial limb include Section 42(3), which provides for imprisonment "or" fine "or" both before the Chief Metropolitan Magistrate, Delhi (see Sections 42 and 42A). Whether that sub-section falls inside or outside the exclusion is not answered by the text, and this article does not guess. Anyone relying on Section 59A should check the position for the specific offence.
The procedure
Section 59A does not say who may apply, what fee, what the Tribunal must consider, or what effect compounding has on the offence. The sources do not contain rules on compounding under this Act. For the general idea of compounding versus adjudication, see our guide on compounding versus adjudication of offences, which is general and does not describe this section.
Section 60: overriding effect
"The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force." Where the Act conflicts with another law, the Act prevails. The sources do not list those laws.
Section 61: exclusion of jurisdiction of civil courts
"No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Commission or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act." The printed footnote shows that "Commission or the Appellate Tribunal" replaced "Commission" in 2007; we do not go into the earlier text.
Two limbs matter. First, a civil court cannot take up a suit or proceeding on a matter that the Commission or the Tribunal can determine. Second, no court or other authority can grant an injunction against any action taken or to be taken under a power in the Act. Appeals go through the Appellate Tribunal and the Supreme Court: see Section 53B and Section 53T.
Section 62: application of other laws not barred
"The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force." Section 62 and Section 60 sit side by side: Section 60 gives priority to the Act where there is inconsistency, and Section 62 says the Act does not cancel other laws that can operate alongside it.
| Section | Effect | Changed in 2023? |
|---|---|---|
| 59A | Compounding of certain offences by the Appellate Tribunal or the court where the proceeding is pending | New |
| 60 | Overriding effect over inconsistent laws | No |
| 61 | Civil courts barred; no injunction against action under the Act | No |
| 62 | Act in addition to other laws | No |
What the 2023 Amendment Act changed
Section 59A is new, so there is no earlier text to compare. The consolidated text of the Act had no compounding provision. Sections 60, 61 and 62 are unchanged.
Practical example
An executive of Quartz Fabrics Ltd (invented) is prosecuted for an offence under the Act. If the offence is not one punishable with imprisonment only or with imprisonment and also with fine, the parties may ask the Tribunal or the court where the proceeding is pending to compound it, before or after proceedings begin. Separately, if Quartz Fabrics files a civil suit seeking to stop a Commission inquiry, Section 61 bars the suit and any injunction against the action; its route is through the Tribunal and the Supreme Court.
Need help with a prosecution or a civil claim?
Whether an offence can be compounded and whether a civil court can hear a claim are questions to settle early. Our legal dispute resolution team can read the charge and the facts and advise on the route. For the overall structure of enforcement, see CCI powers and procedure.
Key takeaways
- Section 59A allows compounding by the Appellate Tribunal or the court where the proceeding is pending, before or after proceedings begin.
- Offences punishable with imprisonment only, or with imprisonment and also fine, are excluded.
- The sources do not list the offences or the procedure for compounding.
- The Act overrides inconsistent laws (Section 60) but is in addition to other laws (Section 62).
- Civil courts have no jurisdiction over matters for the Commission or the Tribunal, and no injunction lies against action under the Act (Section 61).
Read next
- Sections 57 to 59: confidentiality, public servants and good faith
- Section 63: power of the Central Government to make rules
- Sections 42 and 42A: non-compliance with Commission orders
- What changed in the 2023 amendment
Disclaimer: Based on the consolidated text of the Competition Act, 2002 published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023, and on the regulations and guidelines of the Commission as notified in 2024, as consulted on 2 October 2026. Commencement notifications, notified thresholds, rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.