38.6c New Delhi, India, Wednesday, June 19, 2024

SC directs Stay of Recovery proceedings by CCI against Adani Gas, orders it to pay a Sum of Rs 3.20 Crores within four weeks

By Neha Bharti      11 September, 2020 05:11 PM      0 Comments
Supreme Court Competition Commission of India

On 9th September 2020, the Supreme Court of India granted a stay of recovery of fine levied by the Competition Commission of India for abuse of dominant position by Adani Gas Limited. The 3 Judge Bench comprising of Justice DY Chandrachud, Indu Malhotra, and KM Joseph while granting the stay of recovery imposed a penalty on Adani Gas Limited of Rs 6.40 Crores out of which half of the amount i.e. 3.20 Crores have to be submitted within four weeks of the order passed by this Court.

The next date of hearing in the matter is in March 2021. 

AGL has knocked the door of the Apex Court aggrieved by the decision of the National Company Law Tribunal dated 05.03.2020 which confirms the finding by the Competition Commission of India that AGL was “ guilty of abuse of dominant position” as AGL is supplying piped natural gas in Faridabad to the customer. The commission while inquiry under section 19 of the Competition Act, 2002 filled by Faridabad Industries Association in 2014 order that the Gas Supply Agreement of AGL is unfair and imposing a discriminatory condition to show his dominant position.  

AGL was found guilty of imposing an unfair condition on the buyer under the Gas Supply Agreement by the Commission for the violation of section 4(2)(a)(i) of the Competition Act 2002. “It was known that the AGL was the only Natural Gas Supplier in that particular area who was abusing his position by imposing an unfair condition on the Gas Supply Agreement with Industrial Customers” this was noted by National Company Law Appellant Tribunal. National Company Law Appellant Tribunal formed under Companies Act 2013 be the Appellant Tribunal under the Competition Act, 2020 as provided under Section 53A of Competition Act, 2002.

National Company Law Appellant Tribunal noted that clause 13 of the Gas Supply Agreement I.e. Billing and Payment enumerates that the buyer has to pay the excess amount of money to the seller due to incorrect billing /invoicing on the part of the seller. It was also noted that Clause 13 states that no liability of the seller for any interest which is delayed payment by the buyer. Abuse of dominant position can be classified into two broad categories first is “Exploitative” which means excess and discriminatory pricing and second is “Exclusionary” which means denial of market access. In this case abuse of dominant position by AGL is classified as “Exploitative”. 

The National Company Law Appellant anyway decreased the quantum of punishment as a penalty from 4% of the annual turnover of the significant 3 years to 1%. Appellant Tribunal ordered AGL to resist itself from doing any act which is in contravention to the Competition Act, 2002. 

Share this article:

Leave a feedback about this

Trending News Updates
Historic Moment: All Four Gates of Puri’s Jagannath Temple Reopened After BJP’s Landmark Victory in Odisha

Historic Moment All Four Gates of Puris Jagannath Temple Reopened After BJPs Landmark Victory in Odisha

18 June, 2024 11:03 AM
Trending Executive
Education Minister admits irregularities in NEET UG; Centre, NTA to face probing queries in SC

Education Minister admits irregularities in NEET UG; Centre, NTA to face SC probe over exam conduct and paper leak allegations, counselling to proceed.

18 June, 2024 12:14 PM


Trending CelebStreet
Karan Johar moves Bombay High Court against film ‘Shaadi Ke Director Karan Aur Johar’

Karan Johar files a lawsuit in Bombay High Court against the film “Shaadi Ke Director Karan Aur Johar,” seeking to prevent the use of his name in the title.

13 June, 2024 12:01 AM
Trending Judiciary
Conspired to transform India into an Islamic country by 2047: Bombay HC denies bail to 3 Islamists PFI members [Read Order]

Bombay High Court denies bail to three PFI members accused of plotting to turn India into an Islamic state by 2047, citing strong evidence and risk of tampering.

13 June, 2024 12:37 AM
Trending Judiciary
Delhi HC refuses to stay NEET-UG admissions counselling, over paper leak allegations

Delhi High Court refuses to stay NEET-UG 2024 counselling amidst allegations of irregularities.

13 June, 2024 12:48 PM
Trending Judiciary
Centre to hold re-test for 1563 candidates awarded grace marks in NEET UG, 2024 [Read Order]

Centre to hold re-test for 1563 candidates awarded grace marks in NEET UG 2024. Date for re-test to be notified on June 13, results by June 30.

13 June, 2024 01:39 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email