COMPAT sets aside Rs 1773 crore penalty on Coal India, case remitted to CCI

The Competition Appellate Tribunal (COMPAT) on Tuesday quashed a 2013 decision of the Competition Commission of India, which imposed a fine of Rs. 1773 crore on Coal India Ltd. (CIL) and three of its subsidiaries for abusing their dominant position to supply poor quality coal..At least two other orders of the CCI have also been set aside. However, these orders did not impose penalties, but merely ordered CIL to cease and desist from unfair practices and modify terms of the FSAs..The COMPAT, without getting into the merits of the case, has remitted the matter back to the CCI for fresh consideration on the ground that principles of natural justice were not followed. The final order had been passed by a combination of members, some of whom were not present for the oral hearings..In the meanwhile, CIL and its subsidiaries have not been allowed to withdraw the modifications it had to make to the FSA following the CCI’s orders. The CCI has been further directed to hear the case as early as as possible and in no event, later than two months from the date of the order..The COMPAT observed,.“It has been repeatedly held by the Supreme Court that functions performed by the bodies like the Commission which are clothed with the power to decide the rights of the parties or pass order adversely affecting a person are quasi-judicial in nature and are bound to comply with different facets of the principles of natural justice.”.Shardul Amarchand Mangaldas & Co acted as the legal advisor to Coal India and its subsidiaries. Seniors Advocates Gopal Subramaniam and Ramji Srinivasan were instructed by the SAM team led by Regional Managing Partner, Pallavi Shroff along with Partners Shweta Shroff Chopra, Harman Singh Sandhu and Associates Yaman Verma and Toshit Shandilya..Acting on behalf of the CCI, Senior Counsel Pallav Shishodia was briefed by Rishad Ahmed Chowdhury, Partner at Verus..You may read the text of the order here:.Image: Source