Jun 14, 2018

CCI Dismisses Complaint claiming Violation of Section 4 by Judgement-Debtor as a result of Selective Non-Payment to Certain Judgement-Creditors

On February 27, 2018, CCI while deciding on information provided under Section 19(1)(a) of the Competition Act against Sri Ram Housing Finance & Investment of India Limited (‘Sri Ram Housing’), dismissed the batch of claims alleging abuse of dominance.[1] In 2003, the SC declared the commercial complex constructed by Sri Ram Housing to be illegal and worthy of being demolished. Accordingly, the Municipal Authorities demolished the commercial complex. Consequently, a string of petitions were filed before the erstwhile Monopolies and Restrictive Trade Practices Commission (‘MRTP Commission’) claiming refund. The MRTP Commission ordered Sri Ram Housing to repay the principal amount, but did not decide on the interest to be paid.Since the issue of interest was pending, Sri Ram Housing paid the principal amount to the informants, but did not pay interest. Note that the informants were not party to the proceedings before the MRTP. Thereafter, compensation applications were filed which were decided by the COMPAT, being its successor. COMPAT directed Sri Ram Housing to pay interest at 15% from the date of deposit of principal amount till the date of refund. Even then, interest was not paid. It was alleged by the informants that interest was paid to the other buyers but not to them, and this amounted to an infringement of Section 4.CCI held that nothing had been placed on record to show that Sri Ram Housing was in a dominant position in any relevant market, and therefore, no prima facie case of contravention of Section 4 could be made out. Further, CCI clarified that non-payment of interest was not within its scope.[1] Case no. 67 of 2017.

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