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2020 (8) TMI 700 - AT - Companies LawPrinciple of Merger - Compensation under Section 53N(1) of the Competition Act, 2002 - aggrieved entity - violation of Section 3(3) of the Act - time limitation - applicant contends the respondents to take a plea that the Compensation Application filed by the Applicant centers around the assumption that Section 53N of the Act requires the existence of either the former Competition Appellate Tribunal (COMPAT)/ National Company Law Appellate Tribunal or the Competition Commission of India’s order - HELD THAT:- It is to be pertinently pointed out that the Section 53N of the Act speaks of ‘Awarding compensation’ and a mere perusal of the ingredients of the said Section unerringly point out that the said Section does not contemplate a Limitation period for projecting an ‘Application’. It is an axiomatic principle in Law that when no time limit is prescribed, based on the ‘Doctrine of Laches’ the relevant proceedings ought to have been filed within a reasonable period of time and that failure to do so results in serious prejudice and harm to the concerned party and adversely affects the ability of the said party to defend itself. In fact, the Competition Act, 2002 does not either by reference or in comparison provide for any period of Limitation for the purpose of filing an Application before COMPAT to adjudicate a case for compensation arising from the findings of the CCI or from the orders of COMPAT or under Section 42A or 53Q(2). It is not in dispute that the Applicant had sent the Information through letter dated 04.02.2011 under Section 19(1) of the Act to the Hon’ble Commission alleging ‘anti-competitive behavior’ on the part of the three Respondents and another. Further, the Applicant had alleged that the Respondents had acted and resorted in a manner in regard to the tenders released by the Applicant for purchasing Aluminum Phosphate Tablet (ALP) for the period 2009-10 - As a matter of fact, the Hon’ble Commission found that the Respondents had cartelised in respect of the two tenders for purchase of ALP Tablets released by the Applicant for the period from 2009-10 and 2011-12 and also it was found out that the Respondent had colluded and fixed the prices for the year 2009 tender and collusively boycotted the 2011 tender, thereby contravening Section 3 of the Act. Undoubtedly, a plea of Limitation cannot be determined as an abstract principle of Law divorced from facts. The question of Limitation is an mixed issue of ‘Fact and Law’. In fact, ‘Limitation bars remedy and does not destroy a right’. This Tribunal taking into account of all the facts and circumstances of the present case in a conspectus fashion, comes to a resultant conclusion that in the present case, the ‘cause of action’ firstly arose from the decision of the CCI’s order dated 23.04.2012, which was later affirmed by the COMPAT on 29.10.2013 and attained finality - this Tribunal holds that Section 53N of the Competition Act, 2002 entail an Applicant’s ‘cause of action’ to have come into existence because of an order of the Competition Commission of India or the Competition Appellate Tribunal. Further, it cannot be lost sight of that in the instant case, the Competition Commission of India, erstwhile COMPAT and the Hon’ble Supreme Court had found that the Respondents had violated the Competition Act. Application allowed.
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