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TMI Blog2023 (5) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... . Malhar Desai , Advocates for R - 4 . ORDER Per : Justice Rakesh Kumar Jain ( Oral ) The present appeal is directed against the order dated 10.07.2020 passed by the 'Competition Commission of India' (hereinafter referred to as 'The Commission') while deciding as many as five references filed under Section 19 (1) (b) of the Competition Act, 2002 (hereinafter referred as to 'The Act'), at the instance of the Chief Materials Manager, South Eastern Railway, the Controller of Stores, Central Railway, the Chief Materials Manager, Eastern Railway, the Chief Materials Manager-I, North Western Railway and The Chief Materials Manager-Sales, North Western Railway . 2. The present appeal, however, has been filed by the Chief Materials Manager, Eas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the final stage of investigation, the Commission received one more Reference Case from a Railway Zone with similar set of allegations and accordingly, the Commission kept this Reference Case in abeyance to await the investigation report in the clubbed cases. As such, after receipt of consolidated investigation report, the Commission clubbed this subsequent Reference Case with the initial batch of 4 Reference Cases and forwarded the investigation report to the parties in all the 5 Reference Cases. Further, apart from examination of various tenders covering a period starting from 2009 to 2017, the present matter also involved 12 OPs and their 28 individuals. In such a wide ranging and complex investigation carried by the DG spanning acr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation and inquiry before the DG and the Commission respectively by not denying the material confronted by the DG. Needless to add, such cooperative conduct optimizes the resources of the DG as also expedites the adjudicatory process besides lessening the regulatory burden. The ultimate object of the Act is to correct the market distortions and to discipline the behaviour of the market participants. In such backdrop, the Commission holds that the objectives of the Act would be met if the parties in the present matter cease such cartel behaviour and desist from indulging in similar behaviour in future, as directed earlier. The parties are however, cautioned to ensure that their future conduct is strictly in accord with the provisions of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be; (b) impose such penalty, as it may deem fit which shall be not more than ten per cent. of the average of the turnover for the last three preceding financial years, upon each of such person or enterprises which are parties to such agreements or abuse: Provided that in case any agreement referred to in section 3 has been entered into by any cartel, the Commission shall impose upon each producer, seller, distributor, trader or service provider included in that cartel, a penalty equivalent to three times of the amount of profits made out of such agreement by the cartel or ten per cent. of the average of the turnover of the cartel for the last preceding three financial years, whichever is higher; (c) award compensation to parties in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 27(a) of the Act and made the following observations: "In such backdrop, the Commission holds that the objectives of the Act would be met if the parties in the present matter cease such cartel behaviour and desist from indulging in similar behaviour in future, as directed earlier. The parties are however, cautioned to ensure that their future conduct is strictly in accord with the provisions of the Act, failing which any such future behaviour would be viewed seriously constituting recidivism with attendant consequences." 7. We are satisfied with the order passed by the 'Commission' in regard to the invocation of Section 27(a) of the Act for the reasons which have been mentioned in para 51 of the impugned order itself (reproduced her ..... X X X X Extracts X X X X X X X X Extracts X X X X
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