NDLI: Scm Solifert Limited & Anr. Vs. Competition Commission of India

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Competition Act 6(2) 43A 2002 – ss.5(a)(i) (ii)
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 Dismissed
Headnote	Competition Act, 2002 – ss.5(a)(i), (ii), 6(2), 43A – Appellants acquired shares of a company (‘MCFL’) on two occasions – First acquisition was for 24.46% paid up share capital and the second acquisition was for a further 1.7% paid up share capital – Appellants filed notice disclosing details of the first acquisition and notifying second acquisition within 30 days of the second acquisition – Competition Commission imposed penalty u/s.43A for failing to notify the proposed combination before the acquisition as required u/s.6(2) – Order upheld by appellate tribunal – On appeal, held: Under s.6(2) the proposal to enter into combination is required to be notified to the Commission – Notification has to be made before entering into the combination – Notice of s.6(2) is to be given prior to consummation of the acquisition – Ex post facto notice is not contemplated u/s.6(2) – Further, Sch.1 to the Combination Regulations, 2011 provides that acquisition of shares or voting rights referred to in s.5(a)(i) or s.5(a)(ii) does not entitle the acquirer to hold 25% or more of the total shares or voting rights of the company, directly or indirectly – In the instant case, by the second transaction appellant’s holding exceeded more than 25%, as its total shareholding increased to 25.3% and thus, prior permission was required – Explanation to Sch.1 further states that acquisition of less than 10% of the total shares or voting rights of an enterprise is solely an investment – Beyond this threshold, the transaction is required to be looked at carefully – Appellant’s first acquisition was a part of the long-term plan to try and take over ‘MCFL’, which was simply not an investment– Purchase of 24.46% equity stake, vested power to exercise influence – Thus, there was a failure to comply with s.6(2) in regard to the acquisition of 24.46% equity of the shareholding – In the facts of the case, information was disclosed belatedly – Imposition of penalty was right – CCI (Procedure in regard to the Transaction of Business Relating to Combinations) Regulations, 2011 – rr. 4,5 and Entry I of Schedule I – SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Competition Act, 2002 – s.6(2) – Legislative mandate of – Discussed. Competition Act, 2002 – s.43A – Imposition of penalty under – Discretion for – Held: Imposition of penalty u/s.43A is on account of breach of a civil obligation – Thus, a penalty has to follow – Discretion u/s.43A is with respect to quantum. Competition Act, 2002 – ss.6(2),31(1) – Vide two transactions, appellants acquired shares of a company (‘MCFL’) and filed notice disclosing the details thereof within 30 days of the second acquisition – Competition Commission approved the proposed combination, however, imposed penalty for failing to notify the proposed combination before the acquisition as required u/s.6(2) – Plea of appellants that after approval of the proposed combination u/s.31(1), penalty ought not to have been imposed – Held: Merely by grant of approval by the Commission violation of provisions does not become condonable ipso facto, when prior notice was not given u/s.6(2).
Judge	Hon'ble Mr. Justice Arun Mishra
Neutral Citation	2018 INSC 354
Petitioner	Scm Solifert Limited & Anr.
Respondent	Competition Commission Of India
SCR	[2018] 4 S.C.R. 302
Judgement Date	2018-04-17
Case Number	10678

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Scm Solifert Limited & Anr. Vs. Competition Commission of India

Please Log-in to view this content

Competition Commission of India Vs. Thomas Cook (india) Ltd. & Anr.

Coal India Limited and Anr Vs. Competition Commission of India and Anr

Competition Commission of India Vs. Bharti Airtel Limited and Others

Competition Commission of India Vs. Steel Authority of India Ltd. & Anr.

Excel Crop Care Limited Vs. Competition Commission of India and Another

M/s. B. Himmatlal Agrawal Vs. Competition Commission of India & Anr.

Union of India & Anr. Vs. Citi Bank, N. A.

Competition Commission of India Vs. State of Mizoram & Ors.

Uber India Systems Pvt. Ltd. Vs. Competition Commission of India & Ors.

Scm Solifert Limited & Anr. Vs. Competition Commission of India

Scm Solifert Limited & Anr. Vs. Competition Commission of India

Please Log-in to view this content

Similar Documents

Competition Commission of India Vs. Thomas Cook (india) Ltd. & Anr.

Coal India Limited and Anr Vs. Competition Commission of India and Anr

Competition Commission of India Vs. Bharti Airtel Limited and Others

Competition Commission of India Vs. Steel Authority of India Ltd. & Anr.

Excel Crop Care Limited Vs. Competition Commission of India and Another

M/s. B. Himmatlal Agrawal Vs. Competition Commission of India & Anr.

Union of India & Anr. Vs. Citi Bank, N. A.

Competition Commission of India Vs. State of Mizoram & Ors.

Uber India Systems Pvt. Ltd. Vs. Competition Commission of India & Ors.

Scm Solifert Limited & Anr. Vs. Competition Commission of India