Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2002: ss.6(2) and 43A Competition Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Competition Act, 2002 (12 of 2003) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Competition Act, 2002:ss.6(2) and 43A – Imposition of penalty u/s.43A for non-compliance of provision u/s.6(2) – Propriety of – The threerespondent companies decided about de-merger/amalgamation –Share Subscription Agreement (SSA), Share Purchase Agreement(SPA), Open Offer and Market Purchases were also part of thetransaction – Respondents sent Notice u/s. 6(2) to appellant-Commission notifying only ‘Demerger’ and ‘Amalgamation’ and notother transactions – Other transactions were, however, disclosedwhile claiming exemption u/s. 5 – Appellant-Commission imposedpenalty u/s.43A of Rs. one crore for not notifying other transactionsin terms of s.6(2) – Competition Appellate Tribunal allowed theappeal against the order of Commission – On appeal, held: All thetransactions were part of the same transaction – All the transactionsare intrinsically connected with and interdependent on each otherand form one viable part of business transaction – Regulation 94of 2011 Regulations acknowledges the possibility of businesstransaction being interconnected or interdependent steps of suchtransactions – Technical interpretation of isolate two different stepsof transactions of a composite combination would be against thesprit and provision of the Act – Regulation 9(4) cannot be interpretedto enable consummation by a composite combination before givingnotice to the Commission – By applying the ultimate objective testalso, it is apparent that market purchases were within view of thescheme that was framed – There was no requirement of mens rea orintentional breach as an essential element for levy of penalty u/s.43A – Mens rea assumes importance in case of criminal and quasicriminal liability – Penalty u/s. 43A is on account of breach of acivil obligation and proceedings are neither criminal nor quasi-criminal – Imposition of penalty u/s.43A by the Commission was just and proper – Competition Commission of India (Procedure inRegard to the Transaction of Business Relating to Combinations)Regulations, 2011 – Regulation 9(4). |
Judge | Hon'ble Mr. Justice Arun Mishra |
Neutral Citation | 2018 INSC 352 |
Petitioner | Competition Commission Of India |
Respondent | Thomas Cook (india) Ltd. & Anr. |
SCR | [2018] 3 S.C.R. 391 |
Judgement Date | 2018-04-17 |
Case Number | 13578 |
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