Competition Commission rectifies error in order

Competition Commission rectifies error in order New Delhi: Fair Trade Regulator CCI has rectified an error in its order issued in October that was related to tyre manufacturers in the country.

In October 2012, the Competition Commission of India said that it has not found any evidence of cartelisation among the country's tyre manufacturers including Apollo, MRF and Ceat.

However, that order was passed under Section 27 and under this clause, an order could only be passed if the companies are found abusing their dominant position in the market.

Rectifying its error, CCI said the order passed on October 30, 2012, was the final order and not an order under section 27 of the Competition Act.

CCI has said the error has been rectified under Competition Act's Section 38(2)(b) -- which allows any of the regulator's order to be rectified to correct a mistake which is apparent from the record and which has been brought to its notice by any party to the order.

"It is clear from a plain reading of Section 27 that orders under Section 27 can only be passed where after inquiry, the Commission finds a contravention of Sections 3 or 4 of the Act.

"Since in the present case, no contravention of either Sections 3 or 4 was found by the Commission after inquiry, the order in question cannot be made under Section 27 of the Act," CCI said in an order dated January 16.

According to CCI, this is a fit case for rectification and that the title of the order be amended to 'Final Order' and not 'Order' under section 27 of the Competition Act, 2002".

CCI also noted that for the removal of doubts, "it is hereby declared that the Commission shall not, while rectifying any mistake apparent from record, amend substantive part of its order passed under the provisions of this Act".

In the October order, CCI had said that there was no sufficient evidence to hold a violation by the tyre companies -- Apollo, MRF, J K Tyre, Birla, Ceat and ATMA (Automotive Tyre Manufacturers Association) -- of Competition Act.

PTI