NCLAT stays CCI’s Rs 591 cr fine on Coal India
Shardul Amarchand Mangaldas & Co (SAM & Co), who acted as the legal advisor to Coal India Limited and its subsidiaries, in a matter involving imposition of a fine of INR 591.01 Crores on CIL for abusing its dominant position in its Fuel Supply Agreements (FSAs) with power sector utilities, successfully obtained a stay.
On May 31, 2017, the National Company Law Appellate Tribunal, in its first significant decision against the order of the Competition Commission of India (CCI) stayed the penalty of Rs. 591.01 crores imposed upon Coal India Limited (CIL). The CCI after hearing the matter, which was remanded by the COMPAT had found CIL and its subsidiaries to be imposing unilateral terms in the FSAs.
On May 26, 2017, the Government of India passed a gazette Notification bringing into force the provisions of the Finance Act, 2017, dealing with the merger of Tribunals. Resultantly, the National Company Law Appellate Tribunal (NCLAT) is now the appellate body which will be hearing appeals against the orders of the Competition Commission of India as the Competition Appellate Tribunal (COMPAT) has ceased to exist.
Shardul Amarchand Mangaldas & Co Team was led by Pallavi Shroff, Managing Partner, assisted by Harman Singh Sandhu, Partner, Yaman Verma, Principal Associate, Toshit Shandilya, Senior Associate, and Gauri Mehta, Associate, all from the Competition Law Practice.
Shardul Amarchand Mangaldas & Co briefed Neeraj Kishan Kaul, ASG and Rajshekhar Rao, Advocate, to appear on behalf of CIL and its subsidiaries in this matter.
As carried in business-standard on 3/6/2017