Supreme Court upholds Compat order on 3 aluminium phosphide tablet manufacturers

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New Delhi | Published: May 9, 2017 7:54:23 AM

The Supreme Court on Monday upheld the Competition Appellate Tribunal’s (Compat) order that directed the three aluminium phosphide tablet (APT) manufacturers to deposit 9% of the penalty on the ‘relevant (product) turnover’/affected turnover for cartelisation and price manipulation.

The tablets are used for preservation of grains that are given to consumers through the public distribution system (PDS). (PTI)

The Supreme Court on Monday upheld the Competition Appellate Tribunal’s (Compat) order that directed the three aluminium phosphide tablet (APT) manufacturers to deposit 9% of the penalty on the ‘relevant (product) turnover’/affected turnover for cartelisation and price manipulation. The tablets are used for preservation of grains that are given to consumers through the public distribution system (PDS).

Dismissing cross-appeals by the companies and the CCI, a bench comprising justices AK Sikri and NV Ramana in separate but concurring judgments held that “relevant turnover” for the purposes of calculation/imposition of penalties in cartel cases should be on the “relevant (product) turnover”/affected turnover instead of the turnover of the entire company, which may be a multi-product one.

While the CCI had imposed a fine at 9% of three years’ average turnover on Excel Crop Care, United Phosphorous and Sandhya Organic Chemicals, Compat had upheld the CCI’s 9% penalty but reapplied it to “relevant turnover” (ie, turnover generated by aluminium phosphate tablets) rather than the total turnover of the companies as a whole.

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