Datar bats for Hyundai against CCI in Madras High Court; Nissan withdraws

The Madras High Court is hearing a petition filed by Hyundai Motors India Limited (Hyundai) challenging the jurisdiction of the Director General (DG), the investigative arm of the Competition Commission of India (CCI), in a case pertaining to imposition of fines on fourteen car manufacturers for anti-competitive practices..The case was heard by Justice V Ramasubramanian on September 15..Senior Advocate Arvind Datar and Advocate AR Karunakaran appeared for Hyundai, briefed by a team from IPN Associates LLP led by Partners TM Kumar and G Guruprasath. Additional Solicitor General G Rajagopalan represented the CCI..Datar submitted that the DG does not have the power to suo moto order investigation against car manufacturers not named in the complaint by the informant. He also questioned the CCI’s logic in leaving out twelve car companies operating in India while holding investigation only against seventeen car companies..The DG had initiated investigation against seventeen car companies after it received a complaint from one Shamsher Kataria about anti-competitive trade practices by three companies – Honda, Volkswagen and Fiat. Kataria had alleged that genuine spare parts and the technical know–how required to effectively repair, maintain and service the automobiles were not available to independent workshops but could only be procured through authorised dealers. This, he had averred, had effectively created a monopoly over the supply of such genuine spare parts and repair/maintenance services..The CCI had imposed fine on fourteen car manufacturers but had excluded Hyundai and two other companies, after the companies had challenged the power of the DG to order an investigation against car manufactures that had not been named by the informant..Hyundai had filed a petition in the Madras High Court challenging the jurisdiction of the DG in the matter. The same was dismissed by a single judge. An appeal was filed against that order before a Division Bench which remanded the matter back to the single judge to be considered afresh. This is the matter that is currently being heard in the High Court.The case will now be heard next week on September 24..Meanwhile Nissan Motors, which had also challenged the jurisidiction of the DG before the Madras High Court, has withdrawn its petition and is considering moving the Competition Appellate Tribunal.