Real judgements, distilled

Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

Competition LawSupreme Court of India

Competition Commission of India vs Kerala Film Exhibitors Federation and Others

Not available · 2025 INSC 1167Decided 26 Sept 2025
Not available
Justice Manoj Misra · Justice K.V. Viswanathan

Background

Crown Theatre complained to the Competition Commission of India that the Kerala Film Exhibitors Federation (KFEF) and its office-bearers, its President and General Secretary, were boycotting film distributors who dealt with Crown Theatre, threatening that their films would not be screened in KFEF member cinemas. After investigation, the Commission found KFEF in contravention of the Competition Act's anti-competitive conduct provisions and penalised not just the Federation but also its two individual office-bearers, and issued behavioural directions restricting them from associating with the Federation's affairs. The Competition Appellate Tribunal (COMPAT) upheld the penalty against the Federation but set aside the penalty and directions against the two individual office-bearers, prompting the Commission's appeal to the Supreme Court.

Decision Breakdown

The Supreme Court held that under Section 48 of the Competition Act, individuals in charge of and responsible for a company or association's affairs at the time of a contravention are deemed liable along with the entity itself, and that no second show-cause notice specifying the proposed punishment is legally required beyond sharing the investigation report to satisfy natural justice. The Court found that the office-bearers had been given adequate notice and opportunity, and rejected the argument that the restrictions violated their constitutional right to form associations, since that right is subject to reasonable restrictions. The Court allowed the Commission's appeal, restored the full findings and penalties against the office-bearers, with the behavioural restriction on their association with the Federation's management to run for two years from December 2025.

Lesson Learnt

Office-bearers of a trade body cannot escape personal liability for anti-competitive conduct by hiding behind the entity's corporate structure. If they were in charge of and responsible for the organisation's affairs when the violation occurred, the law holds them individually accountable too.

Competition Commission of India vs Kerala Film Exhibitors Federation and Others – Legal Case Shots | LegalAware