In what may bring cheers to tyre manufacturers including Apollo, MRF, JK Tyre, Birla and Ceat, citing a technicality in law, the Competition Appellate Tribunal (Compat) has dismissed an appeal against a CCI order that cleared leading these tyre manufacturers of charges of forming a cartel.
Dismissing the petition of All-India Tyre Dealer Federation, the tribunal said the plea was ?non-maintainable? as the Competition Commission of India (CCI) had not passed the order under certain sections of the Competition Act, 2002, that allow an appellant to approach it against any CCI decision.
The CCI in October 2012 had exonerated all tyre manufacturers Apollo, MRF, JK Tyre, Birla and Ceat along with their association ATMA from charges of forming a cartel. CCI?s findings were later challenged before Compat by the All India Tyre Dealer Federation.
Compat can hear appeal only against those orders, which are passed by CCI under the sections mentioned under 53A(1)(a) and (b) of the Competition Act, 2002. Earlier this month, it had dismissed Jindal Steel and Power?s petition against exclusive supply agreement between Indian Railways and SAIL on the same grounds.
Interestingly, in this matter, CCI had earlier passed the order under the Section 27 by error. However, three months later, it rectified the order on January 16, 2013. ?Since in the present case, no contravention of either Sections 3 or 4 was found by the Commission after inquiry, the order in question cannot be made under Section 27 of the Act,? CCI had said in an order dated January 16.