The Competition Appellate Tribunal (COMPAT) has imposed a stay order on the Competition Commission of India?s move to impose a fine of Rs 1 crore on Kingfisher Airlines for not furnishing all details pertaining to an anti-competition case pending with the CCI.
Sources said the tribunal had directed the CCI not to recover the fine amount from the airline company until the matter came up for hearing on January 20, 2011. ?As per the tribunal order, CCI cannot recover the Rs 1 crore fine it had earlier imposed,? a source privy to the case details told FE.
Last year, the CCI ordered an investigation into the code-sharing alliance between Vijay Mallaya-led Kingfisher Airlines and Jet Airways on the grounds that it could be anti-competitive in nature. Following the CCI?s decision, the director-general (investigation) of the commission began a probe. However, sources said despite repeated attempts, Kingfisher refused to divulge key details imperative for carrying out the investigation. This prompted the commission to impose a fine of Rs 1 crore under section 44 (b) of the Competition Act 2002.
Following the commission?s move, Kingfisher Airlines moved the Bombay High Court last year against the commission?s decision and in fact questioned the very jurisdiction of the CCI. The airlines had also argued that since the matter was already pending before the erstwhile MRTPC, it made no sense for the commission to also conduct a parallel probe. However the High Court set aside the petition allowing the CCI to conduct the probe.
The differences in opinion between the two authorities is not new. The CCI had moved SC earlier this year since it was upset over a stay order imposed by Compat. The Tribunal had asked for halting investigations by the Commission into an alleged ?cartel-like arrangement? between SAIL and the Indian Railways. Later, the apex court sensing the possible war over respective jurisdictions had ordered that Compat could not issue a stay order on the CCI?s decision to initiate a probe. The court had recorded that while directing investigations, the CCI would have to record reasons.