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Companies Law - Highlights / Catch Notes

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This case deals with the issue of belated challenge to orders ...


Procedural rights of enterprises in abuse of dominance cases: Timely challenges and change in status.

Case Laws     Companies Law

September 14, 2024

This case deals with the issue of belated challenge to orders and the change of status from 'participant' to 'opposite party' in proceedings related to abuse of dominant position. The key points are: The court held there was no delay in filing the writ petitions as one of the impugned orders was provided to the petitioner only recently. The petitioner was initially treated as a 'third party' participant, but its status was later changed to an 'opposite party' without prior notice. The court observed that an entity is entitled to know its status and the applicable legal provisions, as the consequences and available protections vary based on the status. u/s 27 of the Act, serious consequences like discontinuation of agreements and penalties up to 10% of average turnover can be imposed on enterprises found guilty of abuse of dominant position. The court noted that despite being made an 'opposite party', the petitioner was not provided with the Director General's investigation report as required u/s 26(4) for 'parties' concerned. The court held that the petitioner should have been given prior notice before being impleaded as a party, and the authority's satisfaction for such impleadment should have been recorded through a speaking order. The petition was ultimately dismissed.

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