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TMI Blog2024 (11) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... t for the purpose of avoiding stamp duty and registration charges to the State exchequer; enforcing the lock-in-period clause in the Leave and License Agreement and refusal by the OPs to adjust the rental arrears against the security deposit; repeated threats to forfeit the security deposit and restricting access of Informant's staff to the cold storage plant and threatening to switch off the power supply to the cold storage plant. The Commission observes that the Informant entered into Leave and License Agreement with OP-1 for a period of 5 years for a portion of the cold storage plant with a lease rent of INR 17,38,800/- per month and on payment of security deposit of a sum of INR 52,16,400/- (equivalent to 3 month s rent). The said a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Logistics Park Limited, Vishakapatnam ( Opposite Party No.2/OP-2 ) (hereinafter, OP-1 and OP-2 are collectively referred to as OPs ). 2. The Informant is stated to be engaged in the business of providing storage facilities to consumers, including FMCG companies, pharmaceuticals companies, farmers, etc. which require to preserve their products by way of a temperature controlled cold storage plant. 3. It has been stated that OP-1 is a joint venture between M/s Balmer Lawrie and Company Limited and Vishakapatnam Port Authority and that Vishakapatnam Port at Visakhapatnam, Andhra Pradesh was constructed and maintained by OP-1. Further, OP-2 is stated to be the branch office of OP-1. It has been stated that the OPs have also established a froz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates the leased chambers prior to the said date, it stands to forfeit the security deposit. 7. The Informant has alleged that the entire temperature control mechanism, which is crucial for operating the cold storage units/ chambers for preserving the goods, is under the exclusive control and custody of OP-1 and the lessees of chambers cannot operate the temperature control mechanism except, the limited right to regulate the temperature within the chamber. 8. It has been alleged that a representative of OP-2 issued standing instructions that whenever and wherever, any lessee violates any of the terms and conditions of contract, the power supply be cut off, thereby ruining the entire material kept in the cold storage. 9. The Informant has fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount due to OPs. The Informant further stated that if the OPs continued to threaten the Informant to cut off the power supply during the intervening period by compelling the Informant to forego the security deposit, the Informant would be constrained to file a complaint before the Competition Commission of India. Thereafter, the OPs issued a reply dated 29.01.2024 to the legal notice dated 16.12.2023 stating that OPs are entitled to forfeit the entire security deposit amount. The OPs, in their response to legal notice, stated that an amount of Rs. 56,63,178/- being the outstanding license fee and electricity charges are due from the Informant and are required to be paid at the earliest. 13. The Informant has alleged that despite the OPs re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge plant; (c) directing the OPs to refund the security deposit amount of Rs. 52,16,400/- (Rupees Fifty-Two Lakhs Sixteen Thousand Four) after adjusting the entire rental arrears; and (d) imposing maximum penalty as per the Act on the OPs. 17. The Informant has also sought interim relief under Section 33 of the Act by way of direction to the OPs to: (a) grant uninterrupted access to the Informant and its staff and vehicles to the cold storage plant situated at Visakhapatnam Port Trust; (b) allow Informant to remove the entire stored material in the premises without disconnecting power supply to the cold storage plant during the interim period; and (c) pass such other orders as the Commission may deem fit and proper in the circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining to a lock-in-period of 18 months from the date of taking possession of the cold storage plant during which the said agreement cannot be generally terminated unless there is a breach of the terms and conditions of the said agreement. 22. The Commission notes that the alleged conduct of OPs of the lease agreement camouflaged as a Leave and License Agreement for the purpose of avoiding stamp duty and registration charges to the State exchequer is not a competition issue and does not fall within the four corners of the Competition Act, 2002. Furthermore, other alleged actions against the OPs viz enforcement of the lock-in-period clause in the Leave and Licence Agreement, refusal by the OPs to adjust the rental arrears against the security ..... X X X X Extracts X X X X X X X X Extracts X X X X
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