G.S.SINGHVI, RAJEEV KHER
KERALA FILM EXHIBITORS ASSOCIATION, 40/8147B, COOL HOUSE, NARAKATHARA ROAD, OPP. SHENOY'S THEATRE, KOCHI, KERALA – Appellant
Versus
COMPETITION COMMISSION OF INDIA – Respondent
What is the legality of a joint agreement among OP-1, OP-2 and OP-3 to restrict new movie releases to pre-designated theatres? What is the liability of OP-1, OP-2 and OP-3 under Section 3(3)(b) read with Section 3(1) of the Competition Act, 2002 for restricting/controlling the supply of films? What is the remedy or penalty under Section 53-B for anti-competitive cartelisation in this case?
Key Points: - The Addl. DG found that OP-1, OP-2 and OP-3 formed a cartel to restrict new releases to 70 release stations, limiting competition (!) (!) (!) . - The Commission held that the conduct violated Section 3(3)(b) read with Section 3(1) and that the agreement restricting releases was anti-competitive (!) (!) - (!) . - Evidence included inquiries, affidavits, media reports, and written submissions showing coercive pressure from KFEF on distributors to deny releases to IP members (!) - (!) (!) - (!) . - The tribunal upheld the Addl. DG findings and imposed penalties on Appellants and Respondent No.3, and issued cease and desist orders (!) - (!) (!) - (!) . - The final order: Final Result: Dismissed (appeal) with affirmation of the impugned order and penalties, emphasizing adherence to natural justice and regulatory procedures (!) .
ORDER
1. This appeal is directed against order dated 23.06.2015 passed by the Competition Commission of India (for short, the 'Commission') in Case No.45 of 2012, Kerala Cine Exhibitors Association (Respondent No.2 herein) v. Kerala Film Exhibitors Association (Appellant No.1 herein) and four others under Section 27 of the Competition Act, 2002 (for short, the 'Act') whereby Appellant No.1, Film Distributors Association (Kerala) (Respondent No.3 herein) and their office bearers were directed to cease and desist from indulging in anti-competitive practices, as described in the order and penalty was imposedon the appellants and Respondent No.3.
2. At the outset, we consider it necessary to mention that the description of Appellant No. 1, as given in the title of the appeal, is incorrect inasmuch as the said appellant is 'Kerala Film Exhibitors Federation' and the same has been correctly described as such in the information filed by Respondent No. 2, the investigation report, the impugned order and cover-pages of the three volumes of the paper books.
3. Appellant No. 1 and Respondent No
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