Supreme Court Restores Debarment of Office-Bearers in Kerala Film Exhibitors Case

On 26 September 2025, the Supreme Court upheld the CCI decision to impose penalties and behavioural remedies on the Kerala Film Exhibitors Federation (KFEF), a trade association of cinema hall owners in Kerala, and two of its office-bearers, President P.V. Basheer Ahmed and General Secretary M.C. Bobby. The case arose from a complaint by Crown Theatre (Crown), which alleged that KFEF and its leadership had threatened film distributors against supplying movies to Crown, following its resignation from the association. The CCI found that KFEF had orchestrated a collective boycott of Crown to restrict market access and held the two individuals responsible for their direct involvement in implementing the scheme.

Apart from monetary penalties, the CCI directed that the two office bearers must not associate with KFEF in any administrative or governance role for two years. The CCI order was challenged before the erstwhile Competition Appellate Tribunal (COMPAT), which partially upheld the findings but set aside the directions relating to the individuals, holding that no specific notice was issued proposing their debarment.

The Supreme Court reversed COMPAT’s finding, holding that the notice accompanying the Director General CCI’s (DG) investigation report- identifying the anti-competitive conduct and the role of the individuals, was sufficient. It clarified that the Competition Act does not envisage a second show-cause notice before imposing penalties or behavioural remedies on either enterprises or individuals. The Court acknowledged that behavioural measures are typically imposed on companies, but affirmed that they may extend to individuals where their conduct is central to the anti-competitive scheme.

Business Takeaway: Debarment is a serious consequence for an individual, and while this case relates to association office-bearers, the same principles would apply to companies. Businesses should ensure key decision-makers and employees are trained in competition compliance, and that internal governance structures are in place to detect and prevent anti-competitive conduct, especially for entities that have faced prior proceedings before the CCI.