Indian Railways under the purview of Competition Act

A single bench of the Delhi High Court has recently ruled that Indian Railways would come under the purview of Competiton Act, 2002. In Union of India v. Competition Commission of India, Ministry of Railways challenged an order by the CCI holding that Railways came within the ambit of Competition Act, 2002. It is interesting to note that Railways did not approach Competition Apppellate Tribunal, the statutory appellate authority, instead decided to apprach the Delhi High Court under article 226 of the Constituion. ASG Mr. Mohan Parasaran, who lead the railway side argued that Railways is not an enterprise under s. 2(h) of the Act as it is exercising sovereign functions. This contention was rejected by the Court on the basis of a plethora of decided cases mainly from the industrial law. The railways have already filed an appeal before the Division bench. The single bench decision is accessible at the Delhi High Court website.