SUPREME COURT OF INDIA
K.M. Joseph, B.V. Nagarathna, Ahsanuddin Amanullah, JJ.
Coal India Limited and Anr. – Appellants
Versus
Competition Commission of India and Anr. – Respondents
Civil Appeal No. 2845 of 2017 with Contempt Petition (C) No.896/2018 in C.A. No.2845 of 2017, T.C.(C) No.19 of 2023, T.C.(C) No.20 of 2023, T.C.(C) Nos.16-18 of 2023, T.C.(C) No.21 of 2023
Decided On : 15-06-2023
| Table of Content |
|---|
| 1. civil appeal against cci's findings on monopoly. (Para 1 , 2) |
| 2. arguments regarding applicability of competition act. (Para 5 , 6) |
| 3. appellants argue nationalization act protects them. (Para 7 , 8 , 9 , 10) |
| 4. potential conflicts between competition act and nationalization act. (Para 11 , 12 , 13 , 14) |
| 5. respondents argue competition act applies to state monopolies. (Para 15 , 16 , 17 , 18) |
| 6. constitutional basis of state monopolies and obligations. (Para 19 , 20 , 21 , 22) |
| 7. judicial review and alternative grievance mechanisms available. (Para 23 , 24) |
| 8. court's findings on the application of laws in the case. (Para 25 , 26 , 27) |
| 9. compatibility of various legal frameworks governing monopolies. (Para 28 , 29 , 30) |
| 10. conclusion on the effectiveness of existing laws. (Para 31 , 32 , 33) |
| 11. final observations on maintaining competitive integrity. (Para 34 , 35 , 36) |
JUDGMENT :
K.M. Joseph, J.
1. The Civil Appeal is directed against the Order passed by the Competition Appellate Tribunal, New Delhi (hereinafter referred to as ‘Tribunal’), by which Order, the Tribunal affirmed the findings and conclusion recorded by the Competition Commission of India (hereinafter referred to as ‘CCI’) on various facets of abuse of dominant position. The abuse of dominant position was ascribed to the appellants. The appeal was dismissed.
2. The second respondent had provided information to the CCI which the CCI proceeded to consider and it found the abuse of dominant position by the appellants.
3. The appellants have filed Interlocutory Application, viz., I.A. No. 66587 of 2017 being an application seeking permission to take additional grounds. Parties exchanged pleadings in the interlocutory application. We have allowed the application seeking permission to urge the new grounds.
4. When the matter came up on 16.09.2022 before a Bench of two learned Judges, the Court felt that since modification of order dated 03.08.2017 was sought, it would be appropriate that these matters are heard by a Bench of three learned Judges. It is, accordingly, that the matter stood posted before a Bench of three learned Judges.
5. The principal bone of contention of the appellants in the I.A. 66587 of 2017 appears to be that Coal India Limited, the first appellant (hereinafter referred to as ‘CIL’) being a monopoly created by a statute and what is more important, geared and duty bound to achieve the objects declared in Article 39(b) of the Constitution of India and the second appellant, Western Coalfields Limited, a subsidiary company of the first appellant cannot be bound by the Competition Act, 2002 (hereinafter referred to as the ‘Act’). In other words, having regard to the very object and purpose for which it was brought into being and the law surrounding such a body, applying the Act would produce such anomalous results as would stultify the sublime goal enshrined in Article 39(b) as also the statute under which CIL witnessed its birth. Since it was found that there were proceedings pending before the Commission/Tribunal wherein a similar question would directly arise, transfer petitions were filed to call for such proceedings to this Court. It is hence, that the Transfer petitions which we are dealing with came to be allowed. This is however, on the understanding that the Court would not go into the merits of the individual cases but would confine itself to ruling on the question of law raised by the appellants, viz., the applicability of the Act to them.
6. We have heard Shri K.K. Venugopal, learned Senior Counsel, ably assisted by Shri Yaman Verma, learned Counsel. Shri Maninder Singh, learned Senior Counsel, also appears on behalf of the appellant. Also, we have heard Shri N. Venkataraman, learned Additional Solicitor General, on behalf of CCI and Shri Ranjit Kumar, learned Senior Counsel, appearing on behalf of the second respondent in the Appeal/Application. We have further heard learned Counsel appearing in the transferred cases.
SUBMISSIONS OF TH
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An order under Section 26(1) of the Competition Act is administrative, only initiating an investigation without affecting parties' rights.
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