Hyundai Motor’s appeal on anti-competitive practices rejected by Madras HC

An appeal filed by Hyundai Motors India Ltd. has been dismissed by The Madras High Court, according to recent reports.

The decision of investigating the company for alleged anti-competitive practices related to spare parts sale and after-sale service by the Competition Commission of India (CCI), has been assailed.

Reportedly, the appeal was dismissed by a division bench of justices Huluvadi G Ramesh and RMT Teekaa Raman, challenging the order of a single-judge bench of the court challenging the order of a single-judge bench of the court of the February 4, 2015. The judge stated that a permission to expand the scope of inquiry into the allegations could not be construed on its own investigation by the Director General of the CCI. The matter relates to one Shamsher Kataria’s complaint lodged with the CCI in 2011, asserting anti-competitive practices by three car-makers in the country.

In 2011, an enquiry was conducted by the additional director general of the CCI revealing similar practices being adopted by a few other car manufacturers. The additional director general then sought the permission to expand the scope of investigation into the matter. Hyundai then challenged the complaint in The High Court and said that the additional director general of CCI didn’t have the power to include other companies not mentioned in the complaint.

The argument however was dismissed by the single-judge bench. Later, the company filed the writ appeal. “If the CCI had not issued a direction on April 26, 2011, the director-general could not have proceeded against all other manufacturers. The direction issued by the commission on April 26, 2011, would be tantamount to a direction,” said the division bench. Continuing the order of the single-judge bench, the division bench added that in their considered view, the question of overstepping of jurisdiction does not arise.

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