This information has been filed by the Informant on 22nd December, 2009 under Section 19 of the Competition Act, 2002 in regard to mandating of 1SI marked Ductile Iron (DI) pipes for potable water and sewerage system by Government, allegedly on lobbying by Opposite Party No.3, leading to restraining the Informant from manufacturing and marketing of DI pipes, and amounting to contravention of provisions of Sections 4 (2) (b) and 4 (2) (c) of Competition Act, 2002.

2. The Informant has alleged that Opposite Parties No. 1 & 2 formed the Ductile Iron Pipes and Casting Manufacturers Association, Kolkata (Opposite Party No. 3) on 22nd September, 2003 with the intention to impose limitation or restriction in production, market development etc. relating to DI Pipes by using its dominant position (being pioneer in the field) so that other new entrepreneurs/competitors will be restrained accordingly. It is alleged that Opposite Parties No. 1 & 2, under the veil of said Association, initiated a move to have monopoly in the manufacture and marketing of DI pipes, 3rd that at the relevant point of time i.e. in the financial year 2003-04 when the Association was formed by 11 members, out of which only 2 were ductile iron pipes manufacturers and rest 9 were casting manufacturers, there were more than 270 casting manufacturers in existence in the country but they were not incorporated as members of the Association, which further shows that the Association was formed for the benefit of Opposite Party No.1 and its subsidiary company (Opposite Party No.2) and to serve their individual interests in the market.

3. It has been further alleged that during the period from 23rd July, 2004 to 30th October, 2009 Opposite Parties No. 1 & 2, under the veil of the Association, repeatedly approached the Government and exerted pressure to impose restrictions by way of mandating the use of ISI marked product, which was possible at that point of time only by Opposite Party No. 1 on account of it's pioneer status, It has been stated that on account of its persistent follow up/reminders with the Government authorities, for imposition of a mandatory certification of ISI marked product, ultimately the Ministry of Commerce & Industry (Opposite Party No.4) introduced a mandatory certification scheme of ISI mark for production and marketing of DI pipes, vide notification dated 30.10.2009. It is contended that by the notification of the said scheme, Opposite Party No.4 has created discrimination and consequently has benefited Opposite Parties No.1 & 2 who have the major share of the market.

4. The Informant has made several prayers including the prayer to declare that the Opposite Parties No. 1, 2 & 3, with the active participation of Opposite Party No. 4 & 5, are limiting and/or restricting production, and market development relating to DI pipes, by using their dominance and by causing imposition of condition of 'mandatory certification of ISI marked product', which vitiates the provisions of Competition Act, 2002. A prayer has also been made for declaring that Opposite Party No.3 is not the representative of the manufacturers of DI pipes in India and had no legal right to represent them. The Informant has also sought ex-parte ad-interim injunction to restrain the Association from representing before any authority in any manner.

5. The matter was considered by the Commission in its meetings held on 5.1.2010, 4.2.2010, 16.2.2010, 9.3.2010, 23.3.2010 and 30.3.2010. During this period the Informant along with its authorised representative appeared before the Commission and explained their case. They also clarified the position with regard to latest status of the writ petition filed in the Calcutta High Court. The advocate of the informant filed copy of the writ petition, the Government notification dated 25.6.2009, a copy of the order of the High Court dated 5.2.2010 and other documents.

6. The Commission has carefully considered the entire material on record and submiss