Delhi High Court refuses to interfere with prima facie order passed by CCI

In a 9 March 2018 judgment,(1) the Delhi High Court refused to interfere in a pending inquiry after the submission of the director general's report. In a writ petition filed by Cadila Health Care, the Delhi High Court held that the stage for challenging a prima facie order closes once the director general files its report before the Competition Commission of India (CCI).

The court held that the CCI is under no obligation to record a prima facie case against every aspect involved in the matter, as it cannot foresee or predict whether a violation of the Competition Act will be found following the director general's investigation. The Delhi High Court said that an interpretation to the contrary would defeat the very purpose of the Competition Act – that is, to prevent practices that have an appreciable adverse effect on competition.(2)

This decision is presently under challenge before the Division Bench of the Delhi High Court.

For further information on this topic please contact MM Sharma at Vaish Associates by telephone (+91 11 4249 2525) or email (mmsharma@vaishlaw.com). The Vaish Associates website can be accessed at www.vaishlaw.com.

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