NOTIFICATION

GENERAL RULES CONCERNING PROCEEDINGS BEFORE THE COMMISSION

Proceedings before the Commission :

8. The Commission may, from time to time, hold hearings, meetings, discussions, deliberations, consultation and make enquires and investigations as it may consider appropriate in discharge of its functions under the Act.

Authority to represent :

9. A petitioner/respondent may authorise an advocate or a member of the Institute of Chartered Accountants of India or of the Institute of Cost and Works Accountants of India or such other professional bodies, as the Commission may from time to time specify, to represent such party and to act and plead on his behalf before the Commission. A party may appear himself or with the permission of the Commission may authorise any office employees or an agent to appear before the Commission, to act and plead on his behalf.

Initiation of proceedings :

10. (1) The Commission may initiate any proceeding suo-motu or on a petition filed by any affected or interested person.

(2) The notice of initiation of the proceedings may be issued by the Commission, and it may give such orders or directions as may be deemed necessary for service of notices to the concerned parties, the filing of reply and rejoinder in opposition or in support of the petition in such form as it may direct. The Commission may, if it considers appropriate, issue orders for advertisement of the petition inviting comments from interested parties, on the issues involved in the proceedings in such form as the Commission may direct.

(3) While issuing the notice of inquiry, the Commission may, in appropriate cases, designate an officer of the Commission or any other person whom the Commission considers appropriate to present the matter in the capacity of a petitioner in the case.

Petitions and pleadings before the Commission :

11. All petitions to be filed before the Commission shall be type written, cyclostyled or printed neatly and legibly on one side of white paper and every page shall be consecutively numbered. The Commission may, in addition permit the petitions to be filed in a computer disk, on such terms and conditions, as the Commission may specify. The contents of the petition should be divided appropriately into separate paragraphs, which shall be numbered serially. The petition shall be accompanied by such documents, supporting data and statements as the Commission may specify.

General headings:

12. The general headings in all petitions before the Commission and in all advertisements and notices shall be in Form-1

Affidavit in support :

13. Petitions filed may be verified by an affidavit, and every such affidavit shall be in Form-2

14. In accordance with Section 193 of the Indian Penal Code, 1860, whoever intentionally gives false evidence in any proceedings of the Commission or fabricates false evidence for the purpose of being used in any proceedings, shall be punishable with imprisonment of either description for a term which may extend to seven years and shall also be liable to fine.

Presentation and security of the pleadings, etc :

15. All petitions shall be filed in four copies and additional copies depending upon number of respondents. Each set of the petition shall be complete in all respects. The fee of Rs.250/-(Rs.Two hundred fifty only) shall be payable with the petition.

16. All petitions shall be presented in person or by any duly authorized agent or representative at the headquarters or such other filing center or centers as may notified by the Commission from time to time and during the time notified. The petitions may also be sent by registered post acknowledgement due to the Commission at the places mentioned above. The Vakalatnama in favour of the advocate and, in the event the petitions are presented by an authorized agent or representative, the document authorising the agent or representative shall be filed along with the petition, if not already filed on the record of the case.

17. Upon the receipt of the petitions, the receiving officer (the officer of the Commission designated for the purpose), shall acknowledge the receipt by stamping and endorsing the date of its receipt/presentation and shall issue an acknowledgment. In case the petition is received by registered post, the date on which the petition is actually received at the office of the Commission shall be taken as the date of the presentation of the petition.

18. The presentation and the receipt of the petition shall be duly entered in the register maintained for the purpose by the office of the Commission . After scrutiny, the receiving officer shall register the petition for consideration of the Commission.

19. The receiving officer may decline to register any petition which does not conform to the provisions of the Act or the Regulations or directions given by the Commission or is otherwise defective or which is presented otherwise than in accordance with the Regulations or directions of the Commission :
Provided, however, no petition shall be declined to be registered for defect in the pleadings or in the presentation, without giving an opportunity to the person filing the petition to rectify the defect within the time which may be granted for the purpose. The receiving officer shall advise in writing the petitioner of the defects in the petition filed.

20. A person aggrieved by the advice of the receiving officer in regard to the registration of the petition may request the matter to be placed before the Secretary of the Commission for appropriate orders.

21. As soon as the petition and all necessary documents are lodged and the defects and objections, if any, are removed, and the petition has been scrutinised and registered, the petition shall be put up before the Commission for preliminary hearing and admission.

22. The Commission may admit the petition for hearing without requiring the attendance of the party. The Commission shall not, pass an order refusing admission without giving the party concerned an opportunity of being heard. The Commission may also desire to hear the respondents.

23. If the Commission admits the petitions, it may give such orders and directions, as may be deemed necessary, for service of notices to the respondents and other affected or interested parties for the filing of replies and rejoinder in opposition or in support of the petition.

Service of notices and processes issued by the Commission :

24. Any notice or process to be issued by the Commission may be served under any one or more of the following modes as may be directed by the Commission:-

(a) service by any of the parties to the proceedings as may be directed by the Commission ;

(b) by hand delivery through a messenger ;

(c) by registered post with acknowledgement due ; and

(d) by advertisement in newspaper in cases where the Commission is satisfied that it is not reasonably practicable to serve the notices, processes, etc., on any person in the manner mentioned above.

25. Every notice or process required to be served on or delivered to any person, may be sent to the person or his agent empowered to accept service at the address furnished by him or at the place where the person or his agent ordinarily resides or carries on business or personally works for gain.

26. In the event, when any matter is pending before the Commission and the person to be served has authorized an agent or representative to appear for or represent him in the matter, such agent or representative shall be deemed to be duly empowered to take service of the notices and processes on behalf of the party concerned in all matters and the service on such agent or representative shall be taken as due service on the person to be served.

27. Where a notice is served by a party to the proceedings either in person or through registered post, an affidavit of service shall be filed by such party with the Commission giving details of the date and manner of service of notices and processes.

28. Save as otherwise provided in the Act or in the Regulations and subject to any direction which the Commission or the Secretary or the officer designated for the purpose may issue, the petitioners, the applicant or any other person whom the Commission makes responsible, shall arrange service of all notices, summons, and other processes and for advertisement and publication of notices and processes required to be served. The Commission may also effect service or issue directions for effecting service in any other manner, it considers appropriate. The Commission shall, however, be entitled to decide in each case the person(s) who shall bear the cost of such service and publications.

29. In default of compliance with the requirements of the Regulations or directions of the Commission as regards the service of notices, summons or processes or the advertisement and publication thereof, the Commission may either dismiss the petition or give such other directions as it thinks fit.

30. No service or publication required to be made shall be deemed invalid by reason of any defect in the name or description of a person provided that the Commission is satisfied that such service is in the other respects sufficient, and no, proceeding shall be invalidated by reason of any defect or irregularity unless the Commission, on an objection taken, is of the opinion that substantial injustice has been caused by such defect or irregularity or there are otherwise sufficient reason for doing so.

Filing of reply, opposition, objection, etc :

31. Each person, whom the notice of inquiry or of the petition is issued (hereinafter the respondent) who intends to oppose or support the petition shall file the reply and the documents relied upon within such period and in such number of copies as may be required under these Regulations. In the reply filed, the respondent shall specifically admit, deny or explain the facts stated in the notice of enquiry or of the petition and may also state such additional facts as considered necessary for just decision of the case. The reply shall be signed and verified and supported by affidavit in the same manner as in the case of the Petition.

32. The respondent shall serve a copy of the reply along with the documents duly attested to be true copies on the petitioner or his authorized representative and file proof of such service with the office of the Commission at the time of filing the reply.

33. Where the respondent states additional facts as may be necessary for the just decision of the case, the Commission may allow the petitioner to file a rejoinder to the reply filed by the respondent. The procedure mentioned above for filing of the reply shall apply mutatis mutandis to the filing of the rejoinder.

34. Every person who intends to file objection or comments in a matter pending before the Commission, pursuant to the advertisement and publication issued for the purpose (other than the persons to whom notices, processes, etc. have been issued calling for reply) shall deliver, to the receiving officer, the statement of the objections or comments with copies of the documents and evidence in support thereof within the time fixed for the purpose.

Hearing of the matters :

35. The Commission may determine the stages, manner, the place, the date and the time of the hearing of the matter as it considers appropriate.

36. (i) The Commission may decide the matter on the pleadings of the parties or may call for the evidence from the parties by way of affidavit or may require production of oral evidence in support of their case.

(ii) If the Commission decides to receive the evidence of a party on affidavit, the Commission may, if it considers necessary or expedient, grant an opportunity to the other party to cross examine the deponent.

(iii) The Commission may, if it considers necessary or expedient, direct that the evidence of any of the parties be recorded by an officer or person designated for the purpose by the Commission.

(iv) The Commission may direct the parties to file their written note or arguments or submissions in the matter.

Powers of Commission to call for further information, evidence, etc:

37. The Commission may, at any time before passing orders an any matter, require the parties or any one or more of them or any other person whom the Commission considers appropriate, to produce such documentary or other evidence as the Commission may consider necessary for the purpose of enabling it to pass orders.

38. The Commission may direct the summoning of the witnesses, discovery and production of any document or other material objects producible in evidence, to requisition any public record from any office, to get the examination by an officer of the Commission of the Books, accounts or other documents or information in the custody or control of any person ; which the Commission considers relevant for the matter.

39. In accordance with Section 228 of the Indian Penal Code, 1860, whoever intentionally offers any insult or causes any interruption in any of the proceedings of the Commission, shall be punishable with simple imprisonment for a term which may extend to six moths or with fine which may extend to Rs.1000/- or both.

Reference of issues for advice or opinion :

40. (i) At any stage of the proceedings, the Commission shall be entitled to refer such issue or issues involved in the matter, as it considers appropriate to persons including, but not limited to, the officers and consultants of the Commission whom the Commission considers qualified to give expert advice or opinion.

(ii) The Commission may nominate from time to time any person including, but not limited to the officers and consultants to visit any place or places for inspection and to report on the existence or status of the place or about facilities therein.

(iii) The Commission, if it thinks fit, may direct the parties to appear before the persons designated in sub-clause (i) or (ii) above to present their respective views on the issues or matters referred to.

(iv) The report or the opinion received from such person shall form part of the record of the case and the parties shall be given the copies of such report or opinion, on payment of a fee to be fixed by the Commission. The parties shall be entitled to file their version either in support or in opposition to the report or the opinion.

(v) The Commission shall duly take into account the report or the opinion given by such above stated or the nominated person, the reply filed by the parties while deciding the matter and if considered necessary, examine the person giving the report or the opinion: Provided however, the Commission shall not be bound by the report or the opinion given.

Procedure to be followed where any party does not appear:

41. Where, on the date of hearing or on any other date to which such hearing may be adjourned, any party or his authorized agent or representative does not appear when the matter is called for hearing, the Commission may, in its discretion, either dismiss the petition for default or proceed ex-parte against the party in default and hear and decide the petition.

42. Where a petition is dismissed in default or is decided ex-parte, the person aggrieved may file an application within 30 days from the date of such order or of being proceeded ex-parte, for recall of the order passed, and the Commission may recall the order on such terms as it thinks fit, if the Commission is satisfied that there was sufficient cause for the non-appearance when the petition was called for hearing.

Orders of the Commission :

43. The Commission shall pass order on the petition and the Chairperson and the Members of the Commission who hear the matter and vote on the decision, shall sign the order.

44. The reasons given by the Commission in support of the order including those by the descenting Member, if any, shall form a part of the order and shall be available for inspection and supply of copies in accordance with these Regulations. If no date for passing of the order is fixed, the intimation of passing of the order by the Commission shall be sent to the parties/their representative/counsel. Inspection of records and supply of certified copies:

45. Records of all proceedings, except of those parts which, for reasons specified by the Commissions, are confidential or privileged or otherwise not to be disclosed to any person, shall be open to inspection by all the parties to the proceedings either during the proceedings with the permission of the Commission or after the orders have been passed, subject to such person complying with such terms as the Commission may direct from time to time and also with regard to time, place, and manner of inspection and payment of fees. Inspection as above shall be available to any person other than parties to the proceedings, only after final orders are passed in the matter.

46. Any person shall be entitled to obtain certified copies of the orders, directions, decisions and reasons in support thereof given by the Commission as well as the pleadings, papers and other parts of the records of the Commission to which he is entitled to inspect, subject to payment of fees and complying with other terms which the Commission may direct.

Interim orders:

47. The Commission may pass such interim orders, as it may consider appropriate at any stage of the proceedings.