Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Competition Act 2002: ss. 3(3)(a) 3(3}(b) and 3(3)(d) rlw. s. 3(1) and ss. 26(1) 27(b) - Complaint by Food Corporation of India (FCI) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Competition Act, 2002: ss. 3(3)(a), 3(3}(b) and 3(3)(d) rlw. s. 3(1) and ss. 26(1),27(b) - Complaint by Food Corporation of India (FCI) - c Alleging that the three appellant companies and one more company had arrived at anti-competitive agreement in relation to tenders issued by FCI for Aluminium Phosphide Tablets (APT) between the years 2007 and 2009 - Competition Commission of India (CCI) directed investigation - Director General (DG) gave report giving D prima facie .finding affirming the allegations - CCI concluded that the appellant-companies entered into anti-competitive agreement in a concerted manner thereby offending the provisions of s.3 and imposed penalties on all the three appellants at 9% of average 3 years turnover - Competition Appellate Tribunal confirmed the finding of CCI - However, reduced the penalty holding that the E penalty at 9% cannot be on the 'total turnover' and has to be restricted to 9% of the 'relevant turnover' - On appeal questions whether s. 3 was applicable in respect of tender issued prior to coming into force of s. 3; whether CCI was barred from investigating the matter pertaining to tender floated in 20 JI as there was no F complaint about that tender; whether .finding as regards collusive bidding was justified and whether the penalty has to be on 'total turnover' or only on the 'relevant turnover' of the offending company - Held: Section 3 would be applicable in respect of the tender issued prior to coming into force of s. 3 as well because the anti-competitive conduct of the offending companies continued even G after coming into force of s. 3 - 2011 tender also could be the subject-matter of inquiry even when it was not referred to in the complaint - Section 26(1) is wide enough to cover the investigation by DG - While carrying out such investigation, il other facts also get revealed, DG would be well within its power to include those a well in his report - In the facts of the case. the ingredients of s. 3 stand satisfied and the CCI rightly held that provisions of s. 3(3)(a), 3(3)(b) and 3(3)(d) have been contravened by appellant- companies - Section 27(b), while prescribing the penalty on the 'turnover', neither uses the prefix 'total' nor 'relevant' - In the absence of specific provision as to whether such turnover has to be B product specific or entire turnover ol the offending company, adopting the criteria of 'relevant turnover 'for the purpose of imposition of penalty will be more in tune with ethos ol the Act and the legal principles pertaining to imposition of penalties. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2017 INSC 1286 |
Petitioner | Excel Crop Care Limited |
Respondent | Competition Commission Of India And Another |
SCR | [2017] 5 S.C.R. 901 |
Judgement Date | 2017-05-08 |
Case Number | 2480 |
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