On September 2, 2022, the NCLAT dismissed the appeal raised against CCI’s Order dated February 3, 2022 (‘Order’), where information was filed by the Samaleshwari Automobiles (‘Appellant/Informant’) alleging violation of Sections 3 & 4 of the Competition Act against Tata Motors Limited (‘Respondent/TML’). The information was dismissed by the CCI.^[1]

The NCLAT noted the CCI’s observations in paragraph 13 of the Order, where it was observed that the CCI is not inclined to examine TML’s conduct, since TML did not have any significant market power in the passenger vehicles market.

The NCLAT also noted paragraph 14 of the Order, where the CCI had noted that the Informant appears to be more aggrieved of the alleged high interest charged by the Respondent along with the legal notice dated February 25, 2021, sent by TML raising a demand to the Informant to the outstanding combined amount of ₹4,53,37,902. Therefore, in this light, the CCI held that from the interim relief prayers of the Informant, it seemed that an attempt was being made by the Informant to avoid the arbitration proceedings arising out of the Dealership Agreement dated December 26, 2012.

In light of this, the NCLAT was satisfied that the purpose for filing information was not with a view to raise an issue for violation of Sections 3 & 4 of the Competition Act, but to settle the Informant’s grievance.

Accordingly, the NCLAT dismissed the appeal.

[1] Competition Appeal (AT) No.19 of 2022.