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Mittal Auto Sales & Services & Another v/s Global Automobiles & Another


Company & Directors' Information:- GLOBAL AUTOMOBILES LIMITED [Under Liquidation] CIN = U34103WB2005PLC105402

Company & Directors' Information:- GLOBAL I T SERVICES PRIVATE LIMITED [Active] CIN = U72200DL2004PTC127805

Company & Directors' Information:- GLOBAL E-SERVICES PRIVATE LIMITED [Active] CIN = U17116MH1947PTC005768

Company & Directors' Information:- P H SALES AND SERVICES LIMITED [Active] CIN = U74999MH1994PLC080723

Company & Directors' Information:- S. J. S. AUTO SERVICES PRIVATE LIMITED [Active] CIN = U14292UP2007PTC033913

Company & Directors' Information:- AUTO SALES INDIA LIMITED [Active] CIN = U50300AS2001PLC006498

Company & Directors' Information:- P R U SALES AND SERVICES PRIVATE LIMITED [Active] CIN = U29246UP2004PTC029363

Company & Directors' Information:- GLOBAL SALES PRIVATE LIMITED [Active] CIN = U29299DL1984PTC019311

Company & Directors' Information:- P S AUTO SALES INDIA PRIVATE LIMITED [Active] CIN = U50300UP2005PTC030677

Company & Directors' Information:- AUTO SALES PRIVATE LIMITED [Active] CIN = U52334MH1998PTC116724

Company & Directors' Information:- I C L SALES AND SERVICES PRIVATE LIMITED [Amalgamated] CIN = U52110DL1977PTC008473

Company & Directors' Information:- S K GLOBAL SERVICES LIMITED [Strike Off] CIN = U74140WB2008PLC130221

Company & Directors' Information:- K & S GLOBAL SERVICES PRIVATE LIMITED [Active] CIN = U93000DL1996PTC082621

Company & Directors' Information:- I - GLOBAL SERVICES PRIVATE LIMITED [Active] CIN = U72900GJ2010PTC059452

Company & Directors' Information:- V. B. AUTO SALES PRIVATE LIMITED [Active] CIN = U50300UR2008PTC032624

Company & Directors' Information:- Y Z AUTO SALES PRIVATE LIMITED [Strike Off] CIN = U50100MH2002PTC137878

Company & Directors' Information:- C AND R (SALES AND SERVICES) PVT. LTD. [Active] CIN = U51109WB1991PTC051375

Company & Directors' Information:- MITTAL AUTOMOBILES PRIVATE LIMITED [Active] CIN = U51109UP1988PTC009478

Company & Directors' Information:- W R T SALES AND SERVICES PRIVATE LIMITED [Active] CIN = U51109MH1969PTC014235

Company & Directors' Information:- U T SALES SERVICES PVT LTD [Active] CIN = U50300WB1990PTC048699

Company & Directors' Information:- P M SALES AND SERVICES PRIVATE LIMITED [Strike Off] CIN = U51909PN2000PTC014800

Company & Directors' Information:- H AND F AUTO SERVICES PRIVATE LIMITED [Active] CIN = U50400KL2020PTC064163

Company & Directors' Information:- MITTAL SALES PRIVATE LIMITED [Strike Off] CIN = U01111HR1986PTC024468

Company & Directors' Information:- S S SALES & SERVICES PVT LTD [Strike Off] CIN = U51909WB1984PTC037250

Company & Directors' Information:- U A AUTO SALES PRIVATE LIMITED [Strike Off] CIN = U50300MH2002PTC138394

Company & Directors' Information:- GLOBAL SERVICES (C & F ) PRIVATE LIMITED [Active] CIN = U60300MH1982PTC027712

Company & Directors' Information:- MITTAL SALES PRIVATE LIMITED [Active] CIN = U24231UR1988PTC010085

Company & Directors' Information:- R S G SALES & SERVICES PRIVATE LIMITED [Active] CIN = U51103UP2013PTC061000

Company & Directors' Information:- E SALES AND SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140OR2012PTC016103

Company & Directors' Information:- M. K. GLOBAL SERVICES PRIVATE LIMITED [Strike Off] CIN = U72300MH2014PTC259803

Company & Directors' Information:- H L SALES AND SERVICES PRIVATE LIMITED [Strike Off] CIN = U52399PN2011PTC138547

Company & Directors' Information:- S D SALES AND SERVICES PRIVATE LIMITED [Strike Off] CIN = U51909MH2002PTC137543

Company & Directors' Information:- GLOBAL INDIA SERVICES PRIVATE LIMITED [Strike Off] CIN = U74120MH2013PTC242295

Company & Directors' Information:- K R SALES AND SERVICES PRIVATE LIMITED [Active] CIN = U51909DL1997PTC091038

Company & Directors' Information:- A C SALES SERVICES PRIVATE LIMITED [Active] CIN = U65923DL2005PTC137548

Company & Directors' Information:- MITTAL SERVICES INDIA PRIVATE LIMITED [Active] CIN = U93000GJ2019PTC111300

Company & Directors' Information:- C & A SALES AND SERVICES PRIVATE LIMITED [Strike Off] CIN = U51109MH2009PTC189462

Company & Directors' Information:- MITTAL SALES PVT LTD [Strike Off] CIN = U99999DL2000PTC024468

    Appeal No. 6 of 2010

    Decided On, 19 May 2011

    At, Competition Appellate Tribunal

    By, THE HONOURABLE DR. JUSTICE ARIJIT PASAYAT
    By, (CHAIRMAN)
    By, THE HONOURABLE MR. RAHUL SARIN
    By, (MEMBER) & THE HONOURABLE MRS. PRAVIN TRIPATHI
    By, (MEMBER)

    For the Appearing Parties: Rahul Trivedi, Pallav Saxena, Advocates.



Judgment Text

We have heard the learned counsel for the appellant. Challenge in this appeal is to the Order passed by the Competition Commission of India (in short the "CCI") in Case No.14 of 2010. The impugned order was passed under Section 26 (2) of the Competition Act, 2002 (in short the "Act').

The basic allegation is that Respondent No. 1 abused its dominant position in terms of Section 4(1) and 4(2) of the Act. It was alleged that respondent No. 1 placed reliance on Clause 17 of the Agreement entered into between Respondent No.1 and the Appellant to discontinue the arrangement entered into between the parties.

The CCI on consideration of the information purported to have been given under Section 4(1) / 4(2) came to hold that the allegations at the most relate to breach of contract and there was no element of abuse of dominance as alleged. It was specifically noted that no material was placed on record to show or establish infringement of Section 4(1) of the Act. 

Learned counsel for the appellant submitted that placing reliance on the agreement in question appellant incurred huge expenditure and made investments of a huge sum of money and the action of R-1 is contrary to the agreement. He submitted in addition to Section 4 of the Act, the case is also covered by Section 3 of the Act.

Section 4 of the Act speaks of abuse of dominant position. Section 4 reads as follows:-

"Prohibition of abuse of dominant position: Abuse of dominant position

[(1) No enterprise or group shall abuse its dominant position.]

(2) There shall be an abuse of dominant position [under sub-section (1), if an enterprise or a group],-

(a) directly or indirectly, imposes unfair or discriminatory--

(i) condition in purchase or sale of goods or service; or

(ii) price in purchase or sale (including predatory price) of goods or service.

Explanation.--For the purposes of this clause, the unfair or discriminatory condition in purchase or sale of goods or service referred to in sub-clause (i) and unfair or discriminatory price in purchase or sale of goods (including predatory price) or service referred to in sub-clause (ii) shall not include such discriminatory condition or price which may be adopted to meet the competition; or

(b) limits or restricts--

(i) production of goods or provision of services or market therefor; or

(ii) technical or scientific development relating to goods or services to the prejudice of consumers; or

c) indulges in practice or practices resulting in denial of market access [in any manner]; or

(d) makes conclusion of contracts subject to acceptance by other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts; or

(e) uses its dominant position in one relevant market to enter into, or protect, other relevant market.

Explanation.--For the purposes of this section, the expression--

(a) "dominant position" means a position of strength, enjoyed by an enterprise, in the relevant market, in India, which enables it to--

(i) operate independently of competitive forces prevailing in the relevant market; or

(ii) affect its competitors or consumers or the relevant market in its favour;

(b) "predatory price" means the sale of goods or provision of services, at a price which is below the cost, as may be determined by regulations, of production of the goods or provision of services, with a view to reduce competition or eliminate the competitors.

(c) "group" shall have the same meaning as assigned to it in clause (b) of the Explanation to section 5."

Section 4(2) deals with the situation when a case of abuse of dominant position is made out. The Expression "dominant position" is defined in the Explanation of Sub-section (2).

Coming to the question about the applicability of Section 3 of the Act, it is to

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be noted that the information given under Section 19 of the Act, to CCI specifically referred to Section 4(1) and 4(2) of the Act and there was even remote reference to Section 3 of the Act. There was no material placed before the CCI to show that the enterprise enjoyed a position of strength in the relevant market. The CCI has, therefore, rightly refused to interfere in the matter. We find no reason to take a different view. Hence dismissed.
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