Competition Act Case
Competition act case
MONDAY, 13 SEPTEMBER 2010
CCI v SAIL: Supreme Court Gets it Right!
In a telling judgement, the Supreme Court of India, on Sep. 9, 2010, has effectively and judiciously circumscribed the boundaries of exercise of power by both the Competition Commission of India (CCI/Commission) and the Competition Appellate Tribunal (“the Tribunal”) while delivering its verdict in the much awaited case Competition Commission of India v. Steel Authority of India Ltd. This Note captures the highlights of the decision for readers of this Blog!
Background:
The Court was hearing an appeal by the CCI against the order dated Feb. 15, 2010 of the Tribunal in Steel Authority of India Ltd. v. Jindal Steel & Power Ltd. Jindal Steel had filed a complaint before CCI alleging anti-competitive practices and abusive behaviour by SAIL while it entered into an exclusive supply agreement with Indian Railways. Upon receipt of the complaint/information, CCI issued notice to SAIL to furnish certain information for within two weeks from the date of receipt of such notice. SAIL requested for an extension of time upto six weeks to file the required information. CCI in its meting deliberated on the request and decided not to grant any further extension. In the said meeting CCI also formed a prima facie opinion on the existence of the case and directed the Director General (DG) to inquire into the matter pursuant to its powers under Section 26(1) of the Competition Act, 2002 (“the Act”). SAIL challenged this direction before the Tribunal claiming that CCI could not have formed a prima facie opinion without hearing it first. SAIL also contended that CCI has not recorded any reasons while forming the prima facie opinion and that the time provided by CCI to file information was grossly inadequate. While filing the appeal before Tribunal, SAIL did not implead CCI as a party. CCI thus filed an application before Tribunal for impleading itself as a necessary and proper party and also
MONDAY, 13 SEPTEMBER 2010
CCI v SAIL: Supreme Court Gets it Right!
In a telling judgement, the Supreme Court of India, on Sep. 9, 2010, has effectively and judiciously circumscribed the boundaries of exercise of power by both the Competition Commission of India (CCI/Commission) and the Competition Appellate Tribunal (“the Tribunal”) while delivering its verdict in the much awaited case Competition Commission of India v. Steel Authority of India Ltd. This Note captures the highlights of the decision for readers of this Blog!
Background:
The Court was hearing an appeal by the CCI against the order dated Feb. 15, 2010 of the Tribunal in Steel Authority of India Ltd. v. Jindal Steel & Power Ltd. Jindal Steel had filed a complaint before CCI alleging anti-competitive practices and abusive behaviour by SAIL while it entered into an exclusive supply agreement with Indian Railways. Upon receipt of the complaint/information, CCI issued notice to SAIL to furnish certain information for within two weeks from the date of receipt of such notice. SAIL requested for an extension of time upto six weeks to file the required information. CCI in its meting deliberated on the request and decided not to grant any further extension. In the said meeting CCI also formed a prima facie opinion on the existence of the case and directed the Director General (DG) to inquire into the matter pursuant to its powers under Section 26(1) of the Competition Act, 2002 (“the Act”). SAIL challenged this direction before the Tribunal claiming that CCI could not have formed a prima facie opinion without hearing it first. SAIL also contended that CCI has not recorded any reasons while forming the prima facie opinion and that the time provided by CCI to file information was grossly inadequate. While filing the appeal before Tribunal, SAIL did not implead CCI as a party. CCI thus filed an application before Tribunal for impleading itself as a necessary and proper party and also