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2019 (9) TMI 567 - HC - Indian LawsDemand of Interest on account of delay in payment of the penalty - violation of provisions of Section 3 of the Competition Act, 2002 - whether the petitioner is liable to pay interest to the CCI on account of delay in payment of penalty as levied upon it? - HELD THAT:- It is clear from the plain reading of Regulation 5 of the Recovery Regulations, that simple interest at the rate of one and one half per cent for every month, or part of the month, commencing from the date immediately after expiry of the period mentioned in the demand notice, is payable. The contention that since the order passed by CCI had been stayed, there was no delay in making the penalties, is unsustainable. The said issue is no longer res integra - In the STATE OF RAJASTHAN & ANR. VERSUS J.K. SYNTHETICS LTD. & ANR. [2011 (7) TMI 1300 - SUPREME COURT], the Supreme Court had examined several other decisions and had authoritatively reiterated the position that wherever an interim order or stay is granted, the beneficiary of the interim order is bound to pay interest on the amount withheld or not paid by virtue of the interim order unless the final order indicates otherwise. It is material to note that the CCI had found the petitioner to be falling foul of Section 3 of the Act. This finding was not disturbed by COMPAT. The COMPAT had merely reduced the penalty and had modified CCI’s order dated 10.07.2015 to that extent. Such modification would, obviously, relate back to CCI’s order, that is, the order dated 10.07.2015. The contention that the order of CCI had merged with the order passed by COMPAT is correct. However, the COMPAT order reaffirmed CCI’s decision to levy penalty and that decision, having been sustained, cannot be considered as inoperative or non-existent for the period during which it was suspended on account of the stay order. The interest on such penalty being a statutory levy is required to be paid - the petitioner is required to pay interest on the delayed payment - Petition dismissed - decided against petitioner.
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