In a recent judgment, the Supreme Court of India ruled that Coal India Limited (CIL) and its subsidiary companies are subject to the Competition Act, 2002. The court held that the Competition Commission of India (CCI) can take action against CIL for abuse of its dominant position in the coal sector. However, the court emphasized that CIL has the right to defend its actions under the law. This decision comes after CIL challenged a ruling by the CCI in 2014, which held the company guilty of abuse of dominant position and imposed a penalty.
CIL, a public sector undertaking and its subsidiary Western Coalfields Limited, argued that they should be exempt from the Competition Act because they are governed by the Coal Mines (Nationalisation) Act, 1973. They contended that as entities geared towards achieving the objectives declared in Article 39(b) of the Indian Constitution, which focuses on the distribution of community resources for the common good, they should not be bound by the Competition Act.
The Supreme Court bench comprising Justice K.M. Joseph, Justice B.V. Nagarathna, and Justice Ahsanuddin Amanullah rejected CIL’s argument. The court held that there is no merit in the contention that the Competition Act cannot be reconciled with the Coal Mines (Nationalisation) Act. It stated that CIL and its subsidiaries are covered under the Competition Act, and the CCI has the authority to take action against them for abuse of dominant position.
The judgment has significant implications for CIL and its subsidiaries. It establishes that they cannot claim immunity from competition law enforcement and must adhere to the provisions of the Competition Act. The ruling empowers the CCI to investigate and penalize CIL for any anti-competitive practices in the coal sector. This decision also reaffirms the importance of competition law in promoting fair market practices and preventing abuse of dominance.
Hundreds of residents near Mount Ibu, an active volcano on Halmahera island in eastern Indonesia,…
India's strategic infrastructure development along its borders, particularly in regions like Ladakh and Arunachal Pradesh,…
In anticipation of increased demand in the automotive sector, Mahindra & Mahindra Ltd has unveiled…
In a recent briefing on the mid-year update of the World Economic Situation and Prospects…
In a significant development, senior Indian Police Service (IPS) officers A Y V Krishna and…
Nepalese Prime Minister Pushpa Kamal Dahal, also known as Prachanda, is set to seek his…