Tirupati Containers Pvt. Ltd. & Anr. vs Competition Commission of India

12.01.2024: Heard both sides.

According to the Petitioners/Appellants in I.A. No. 3785 of 2023 the total penalty of Rs. 2,39,39,678/- (2,39,22,050/- on the 1^st Applicant and Rs. 17,628/- on Applicant No. 2) was levied upon them. On 11.11.2019 in compliance of the stay order dated 25.10.2019 passed by this ‘Tribunal’, the Applicant deposited 10% of the penalty fund through FDR of Rs. 24 lakhs bearing no. 00447 dated 07.11.2019 drawn on ‘HDFC Bank’.

The contention of the Petitioners in I.A No. 3785 of 2023, in Competition Appeal (AT) No. 56 of 2019 is that, this Appellate Tribunal on 10.11.2022 had passed the Judgment in favour of the Appellants/Petitioners by remanding back the matter to the ‘Competition Commission of India’/ ‘Respondent’ for ‘Re-computation’/Review of penalty as imposed by the Respondent/ CCI through its order dated 09.08.2019.

The crystalline stand of the Petitioners/Appellants, is that since the matter was remanded back to Respondent/CCI for Re-computation/ Review of penalty which was originally imposed by Respondent/CCI through its order dated 09.08.2019, the Appellants/Petitioners, are entitled to get back the ‘FDR’, as ‘FDR’ of Rs. 24 Lakhs dated 07.11.2019 drawn on HDFC Bank, deposited by Appellants/Petitioners, be released by the ‘Office of the Registry’, because of the fact that the matter was already determined by this ‘Tribunal’.

Contending contra, it is the submission of Learned Counsel for the Respondent/CCI, that the liability of the Respondent/CCI, in so far as violation of the act was confirmed, but the matter was remanded back to the Respondent for the ‘limited purpose’ of re-determination of penalty in accordance with the directions passed by this ‘Tribunal’.

Advancing his argument that the Learned Counsel for the Respondent/CCI projects an argument that the instant I.A. No. 3785 of 2023 in Competition Appeal (AT) No. 56 of 2019 is ‘perse’ ‘not maintainable’ and the Appellants/Petitioners are not entitled to get back the refund of ‘FDR Amount’, because of the reason that ‘no case’ is made out by them.

Also, that it is contended on behalf of the Respondent/CCI, that only 10% of the ‘total penalty’, through an order dated 25.10.2019 was directed to be ‘deposited’ and that at no stage where this Appellate Tribunal had not finally determined the merits of the Appellants, ‘Appeal’.

As regards the penalty is concerned, it is the version of the Respondent/CCI, that the matter is pending for ‘Re-adjudication’, by the Respondent/CCI etc. Also, a reference is made on behalf of Respondent/CCI by adverting to Section 47 of the Competition Act, 2002, ‘penalty’ is under Section 27 of the Act are to be credited to the ‘Consolidated Fund of India’ and if it any order of ‘Re-fund’ is to be passed by this ‘Tribunal’ at this stage simpliciter, would cause serious prejudice to the Respondent and the ‘Government of India’, per contra ‘an order imposing penalty’ is in the nature of ‘Money Decree’ which is invested/secured in a ‘Fixed Deposit’ and that ‘no prejudice’, to be caused to the Appellants/Petitioners, if the amounts continues to be held in a ‘Fixed Deposit’ till final Re-determination of penalty.

This ‘Tribunal’ has heard the Learned Counsels appearing for the parties and noticed their contentions.

Although, on behalf of the Respondent/CCI a serious objections in the form of contentions are raised and also agitated before this ‘Tribunal’, this ‘Tribunal’, is of the considered view that it is an admitted fact that on 10.11.2022, this ‘Appellate Tribunal’ had passed the ‘Judgment’ in favour of Appellants/Petitioners, by remitting back the matter to the Respondent/CCI for Review of penalty/Re-computation, as imposed by the Respondent/CCI, through its order dated 09.08.2019.

There is no second opinion of a prime fact that the ‘FDR’ bearing No. 00447 dated 07.11.2019 was drawn on ‘HDFC Bank’ through ‘FDR’ and now the Appellants/Petitioners, prays before this ‘Tribunal’ that the said ‘sum’, may be released by the Registry, in as much as the matter was decided by this Hon’ble Tribunal, as early as on 10.11.2022.

Be that as it may, in view of the fact that this Appellate Tribunal, on 10.11.2022, had passed the ‘Judgment’, remitting back the matter to the CCI, for Review of penalty/Re-computation, as imposed by the Respondent/CCI dated 09.08.2019, this ‘Tribunal’ based on the facts and circumstances of the instant case, which float on the surface, comes to an irresistible, inescapable conclusion that Appellants/Petitioners are entitled to get back the penalty sum which they had deposited through FDR amounting to Rs. 24 lakhs bearing no. 00447 dated 07.11.2019 and said ‘amount’ deposited by the Appellants/Petitioners is directed to be released with accrued interest as the case may be viewed in that perspective the I.A. No. 3785 of 2023 (filed by the Petitioner) is allowed, but without costs.