Judicial Pronouncement

Hon'ble High Court of Gujarat dismisses JK Paper's plea against CCI's prima facie order refusing to interfere with the investigation (JK Paper vs. CCI & Ors. SCA No. 12932/2019)

The Special Civil Application was filed before the Hon'ble High Court of Gujarat challenging the directions passed u/s 26(1) of the Act by the CCI investigation report dated 07.02.2019 prepared by the Office of the Director General, CCI; order dated 04.07.2019 rejecting the request of the petitioner to cross examine the informants; and order dated 02.05.2019, whereby the petitioner was directed to furnish certain documents and details and to make submissions on the quantum of penalty that may be levied in the event that the petitioner was held to have acted in contravention of the provisions of the Act.

After a detailed round of arguments by the parties, the judgement was pronounced on 03.04.2023, whereby the Gujarat High Court dismissed the Writ Petition, vacating the interim stay. Relying upon the judgement of the Apex Court in CCI vs. SAIL (2010) SCC (10)744, the Gujarat High Court observed that exercise of powers by the CCI u/s 26(1) of the Act are not adjudicatory in nature and the formation of prima facie opinion is only an administrative process that does not entail civil consequences. The Hon'ble High Court further relied upon the clarificatory order of the Supreme Court in CCI vs. Coordination Committee of Artist, wherein it was held that the determination of 'relevant market' is not a mandatory precondition for making assessment of the alleged violation u/s 3 of the Act.

The Court accordingly dismissed the Writ Petition. The Hon'ble High Court also validated the DG investigation with respect to copier paper, even though the investigation u/s 26(1) was directed with respect to Maplitho and art paper.