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2015 (4) TMI 21 - HC - Indian LawsPenalties imposed by the Competition Commission of India (hereafter ‘CCI’) for non-filing of undertakings to cease and desist from anti-competitive conduct - Held that:- penalties as contemplated under Section 42(2) of the Act are levied as a punitive measure for noncompliance of orders including orders under Section 27 of the Act. Given the nature of penalties and the wide discretion vested with CCI, the same are to be considered keeping in view several relevant factors including the nature of directions that have remained uncomplied – whether they are substantive or merely formal, the effect of such non-compliance, the intention of the parties accused of non-compliance, the benefit derived by such parties, causes for non-compliance. Penalties by their very nature are punitive measures and thus, have to be considered in light of the gravity of the offence in respect of which they are imposed. There is no allegation that the petitioners had indulged in any anti-competitive conduct or had failed to comply with the directions to cease and desist from anti-competitive conduct as directed by CCI. In the case of petitioner (RSI) had lost its registration with DGS&D on 21.12.2011. Thus even prior to the information being filed with CCI and CCI recording its prima facie opinion, the petitioner had ceased to be a DGS&D Rate Contractor. Consequently, the petitioner had neither participated in the Rate Contract nor was capable of doing so. In the circumstances, the question of the petitioner entering into any arrangement or bid rigging or indulging in anticompetitive conduct proscribed by CCI, did not arise. - In the given circumstances, it is amply clear there was neither any allegation that the petitioners had failed to comply with the ‘cease and desist’ order nor in fact the petitioners could have indulged in an anti-competitive conduct after CCI’s order of 06.08.2013. Thus, in the present case, CCI has imposed penalty even though CCI’s ‘cease and desist’ order was not violated and had been fully complied with. - impugned order is, clearly, without application of mind and has been passed in wanton exercise of powers, ignoring the relevant factors and the constitutional principles. - Decided in favour of appellant.
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