Bar & Bench News Network
Bar & Bench (B&B): Fining Kingfisher, amounting to Rs. 1 crore. What is going to be the impact?
Samir Gandhi (SG): The Competition Act gives the Competition Commission of India (CCI) wide-ranging powers to impose penalties and under Section 43 of the Act, the CCI may impose a fine of Rs. 1 lakh a day upto a maximum of Rs. 1 crore for failure to comply with the directions given by the Director General and / or the CCI.
By fining Kingfisher Airlines with the maximum amount of Rs. 1 crore, the CCI has sent out a strong message that it is prepared to use its powers to levy penalties, which is has not done so far.
B&B: Kingfisher Jet alliance leading to a dominant position. Your views on this?
SG: The CCI has not reached a final determination in the case, so it would be premature to arrive at any conclusions. The fine imposed by the CCI is not a finding on whether the Kingfisher-Jet alliance was indeed an anti-competitive agreement, as was alleged. Instead, the fine has been imposed in order for the CCI and the Director General to be able to collect the requisite information on the basis of which they may come to a final finding.
B&B: Kingfisher had filed an SLP, which it was forced to withdraw. Do you think they have taken this into account?
SG: It will be interesting to have a closer look at the methodology used by the CCI to compute the fine and whether it has included the period during which Kingfisher airlines had approached the Supreme Court through a Special Leave Petition.
(picture source: Business Today)
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- 1. "It is indeed a first small step to bring about speedier hearing of cases... parties invariably take the maximum possible time to even file replies or information sought by investigating agencies... such stiff penalties should deter them from resorting to such delaying tacticsone very important development that has not been recognised by media is that as soon as CCI gave a ruling against the DTH service providers to allow consumers to choose or select channels they want to view and not compulsorily opt for a combination of channels offered by DTH service provider, TATA SKY has been the first one to accept and immediately implement it...It may sound too far fetched but TATAs may eventually the whole world good business ethics and how to follow them... All these so called foreign multinationals will some day have to learn from TATAs what corporate social governance is all about ". Sanjaykumar Jobalia, Mumbai
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The Viewpoint: Indemnification Provisions - Is the fight on the indemnity clause worth the effort?
May 17, 2012 | Bar & Bench brings to you the twentieth article on 'The Viewpoint' series with its Knowledge Partner AZB & Partners. AZB Senior Associate Nandish Vyas and Associate Pranati Ishwar in this article seek to examine the context in which indemnification rights are relevant for acquisition transactions, and also seek to explore if there are areas where they are potentially not worth the comments (2)
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