Tyre cos are not cartelised, rules Competition Appellate Tribunal
30 April 2013 8:10 AM IST
The Competition Appellate Tribunal (COMPAT) has dismissed an appeal against a CCI order that cleared leading tyre manufacturers of charges of forming a cartel.
The tribunal dismissed the petition of All India Tyre Dealer Federation on technical grounds terming it as non-maintainable as competition watchdog CCI had not passed the order under certain sections of the Competition Act, 2002, that allow an appellant to approach it against any CCI decision.
'... it is seen that since the order of the commission (CCI) cannot be said to have been passed under Section 27 of the Act, there would be no appeal maintainable,' a three- member COMPAT bench headed by chairman Justice V S Sirpurkar said while dismissing the plea.
The Competition Commission of India (CCI) in October last year had exonerated all tyre manufacturers Apollo, MRF, JK Tyre, Birla and Ceat along with their association ATMA from charges of forming a cartel.
'No sufficient evidence to hold a violation by the tyre companies Apollo, MRF, J K Tyre, Birla, Ceat and ATMA (Automotive Tyre Manufacturers Association)' of provisions of Competition Act, CCI had said in its October order. CCI's findings were later challenged before COMPAT by the All India Tyre Dealer Federation.
Interestingly, in this matter, CCI had earlier passed the order under the Section 27 by error. However, three months later, it rectified the order on 16 January, 2013.
'Since in the present case, no contravention of either Sections 3 or 4 was found by the commission after inquiry, the order in question cannot be made under Section 27 of the Act,' CCI had said in an order dated 16 January. COMPAT can hear appeal only against those orders, which are passed by CCI under the sections mentioned under 53A(1)(a) and (b) of the Competition Act, 2002. Earlier this month it had dismissed Jindal Steel and Power petition against exclusive supply agreement between Indian Railways and SAIL on the same grounds.
The tribunal dismissed the petition of All India Tyre Dealer Federation on technical grounds terming it as non-maintainable as competition watchdog CCI had not passed the order under certain sections of the Competition Act, 2002, that allow an appellant to approach it against any CCI decision.
'... it is seen that since the order of the commission (CCI) cannot be said to have been passed under Section 27 of the Act, there would be no appeal maintainable,' a three- member COMPAT bench headed by chairman Justice V S Sirpurkar said while dismissing the plea.
The Competition Commission of India (CCI) in October last year had exonerated all tyre manufacturers Apollo, MRF, JK Tyre, Birla and Ceat along with their association ATMA from charges of forming a cartel.
'No sufficient evidence to hold a violation by the tyre companies Apollo, MRF, J K Tyre, Birla, Ceat and ATMA (Automotive Tyre Manufacturers Association)' of provisions of Competition Act, CCI had said in its October order. CCI's findings were later challenged before COMPAT by the All India Tyre Dealer Federation.
Interestingly, in this matter, CCI had earlier passed the order under the Section 27 by error. However, three months later, it rectified the order on 16 January, 2013.
'Since in the present case, no contravention of either Sections 3 or 4 was found by the commission after inquiry, the order in question cannot be made under Section 27 of the Act,' CCI had said in an order dated 16 January. COMPAT can hear appeal only against those orders, which are passed by CCI under the sections mentioned under 53A(1)(a) and (b) of the Competition Act, 2002. Earlier this month it had dismissed Jindal Steel and Power petition against exclusive supply agreement between Indian Railways and SAIL on the same grounds.
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