BackCadila Healthcare appeals against Delhi HC order refusing to stay CCI order
In November 2015, CCI had passed an order directing the director general to investigate certain parties for alleged anti-competitive practices
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New Delhi: Cadila Healthcare on Tuesday moved the Delhi high court in appeal against the order of a single judge bench which had refused to set aside orders passed by the Competition Commission of India (CCI) permitting the director general (DG) to investigate Cadila for indulging in alleged anti-competitive practices and subsequently dismissing a review/recall application against the investigation order.
In August 2015, CCI had received information that the Chemist & Druggist Association of Baroda along with certain pharmaceutical companies was allegedly limiting and controlling the supply of drugs in Vadodara by requiring ‘no objection certificates’ for the appointment of stockists.
On 17 November 2015, CCI passed an order under Section 26(1) of the Competition Act directing the DG to investigate the role of “certain opposite parties" for the alleged contravention. Pursuant to the order, the DG issued notice to Cadila Healthcare directing it to furnish certain information.
It is Cadila’s case that it was only after the DG filed its investigation report with the CCI in May 2017, it came to its knowledge that they were being investigated as “opposite party" in the case.
On 08 September 2017 Cadila filed a review/recall application before the CCI, seeking review/recall of the Section 26(1) order on the ground that CCI had not formed a prima facie opinion against Cadila at that time.
This review/recall application was rejected by CCI earlier this year and Cadila moved the high court against the rejection on 05 March 2018.
A single judge bench comprising Justice V. Kameshwar Rao on 9 March dismissed Cadila’s appeal stating that “although in the prima facie order the commission had directed the role of 3 opposite parties to be specifically investigated, a general direction was also given to the DG to investigate the conduct of such other parties who may have indulged in the said contravention".
Earlier this year, CCI had found Chemists and Druggists Association of Baroda (CDAB) and Federation of Gujarat State Chemists and Druggists Association (Gujarat Federation) to be in contravention of the provisions of the Competition Act, 2002 and imposed a penalty of Rs1,08,588 and Rs11,11,549 on CDAB and the Gujarat Federation, respectively.
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