Competition Commission of India
Technologies Products, Gurgaon vs Bangalore Electricity Supply Co. Ltd., ... on 22 November, 2011
CQWEPETETECEN CQMMESSEON (FF ENQLQ 22" Novembezar, 20/'£1 Case No. sszzm Fified by Technoiagy Prc>ducts, M4, Udyog Vihar, Phage EV, PC'. Maruti, Gu:"gac:xr1-122015 Enfermant Against A. Bangatore Eieciriciiy Suppéy C0. L*=:d., Carporate Offl«::e. IV Féooa", KR. Cércie, Bamga§cre:--56C"=O1.
B. The Fviom/ande E\fia:"aufaci:uring Ca. Pvt. Li:d., Cg/an Bang, Mo':wane Road, Nasik Road, f\3as;Ek ~ 4f2.2'IC='i. Respcrmdent Qrfe-r Section 26%) 0? 'me Act As per R. ébéssenicinq') This an Er':'formaf:c>n flied by "i"e~chnol-:3gy Producits (3.?) against Barwgaiore Eiectm; E:"»uppiy 'Ltd. (0.?-3.1} and Mo%:wam=: ?\/Eanufacturing Lid. {O92}. EP. is cornpany based in Gurgaon where as OPQ? is a rnonopzsoiy SL2p;3l;/ing and distrébuting _;:V;,-:;~'\.vmé"?'."'V}f.ir1..._'Bangaiore and Z~SL.iF€'OUfldiI":g areas. 0.32 is a compary c;.;f§E.'=§.3'tE'E}gjivfébmNasik. g > :. _ 0.: fr N Q3 i,_,i_P. one in this came eut with tender threugh e--ten-deririg on 15,0793-'ii for the etipeiy cit i60i'Zi members of high ve"
iiege detector irietmnierits. it dawe were given for submitting the re-mdei' and the period was tehdei'ing was ever in the evening 2&.,Q7.2="tt_ Same Q? the ceriditi-one in the tender dcsciimente were (i) at ieast 25% at the tendered cgiiaritity of high veitage detectors rriuet have been eubeiied to any other ptibiic Liiiiity or any ether goverhrnent institution, 'ii .
\ .
) Earnest rheney deposit of Re. 262.5630/-- was it) be deposited aieng with car seated eer'ni:.»ie at the equipment i'Ei'Ci_i.iii'E3d to be euebiied. The ii? deposited the een eet money and the eempie which was reciiiired to be ogpened before the it? or its repreeentetive. The bide were veiid for ':20 days irdrh the opening oi' the bid. The bide were reqiiired to opened before the repreeen'tetivee oi the bidders en 3S.Ci7.20t'i after giving a notice or' the bidders.
But no notice was given to the LP. and the bid or" the LP. was mebebiy o;:>ened in its ebeenee, it its net imewn as to whether the eeaied eeihbie was opened and teeted. Qn 08.09.2011 the i.P_ got intei'rnetien that its bid has been rejected end that orders for ptiieheee has been given by Cit-7."i to 0.13.23.
As a c<:>neequei'ir:e the LP. hee eiieged eentraventieh of Sectioiis 3 end 4 of the Competition /'-\«:::t. it has been aiieged that the period :2' 'ii CiE;i_/'Z tor the subrnieeion of the bid was with the intention of reducing I .4 conipeiitieii. FLii'Ei'i€-Bi" no intirnetion wee Given to the it? about the opening of the bid and the rejection of its bid. ithae that 'Erie i"eier:tion wee dorie in such a oiendeetine'nieiri'ner«thet?:iti'iIe ii'-5. C-ei-ii:i 0':
hot E3§3l:lfOE3Ci'l any court. ii: has been ergi.ied that the ehi;ii'e pi"dc.ees violates Arlic:iee 38 arid 39 of the Ccmeiirdiieh of indie. h has been aileged the': OP, eiihi'h§'lied arid fabricated dc>«::i.imei'iie io get ithe per-:::haee erder mi this aliegalieri hes he': been substantiated. The l.P. made enquiries and he 'fduhd that award of cerrireet was made le C'i.P.2 oh '7" -"=8.
.i.\.1.\J 20"l"i. The l.F'. has stated the': it had eeppiied similar e-chlipmehts id as large number of pubiie utilities ahd that the £-3C:;l.,!ipiTle:"li1S euppiied were Woikihg eatiefaeteriiy. li; hee been eiieged that the eriiire preciese was edopied id 'favor of Oil? and defee. the process of eoihpeliiioh. in fee': iheie ere eliegetiohe «:>'l' cellueieh between O.P.'i arid Gui-'-'.2. it was, therefore, argued ihei ihe wl"
iOlE3f tendering l'3l'O'C3E:SS should be healed es huii and void. Hearing was given to ihforihehi: to explain iie eaee. The ii" stated 'chef in rieeriy all ihe Dieeome of Kernetake where similar' iehdere were fioai':ea the tender doc:uh'ieh'le were ee designed Ethel: OP. 2 goi: ihe c:eriirec:'l. And in the tenders where the l.P. wee Li, tenders were Ce led ei:
the instance ei' OP. 2.
This happened even in the ease of iehdere ceiied by the disceihe of Heryehe and UP. it was furf;her argued that / the eclidh of GP 1 arid OP. 2 vieleiee eeeiidri 3 and Coiiieelitioh A<:i.
«ii of the But befere prorzeeciihg we have 're exaihihe the i'raii'iewc>i"i<. Si,i;D:"€lT':E3 Calm. iri caee of Nager Nigeria Vs. Ai Faheerri ivieaii l'~"'\./'it. Lid. Ore SLP {Civil} NC). 10174 of 20063 haeheld ithal all g-cwerhirriehi eiecuremehi eiieuid be by e lehcler iejjecees. has also held ih ihai thei: public: ;3rec:lii'emeht%.ifc'ai3irie§i bei,i'e<:;i.i'afrecl wii:h privaie pi'c:-c:ur'emeni. Further", piibiic procxinenieni being 'serge ieeds to empieyment and ii"idi.JE3'?Zi"iai deveiegmieni and competition in p'=..ihiic:
proc:i.ii'ei"nen is ieeeer cast in governmeni and its agencies gives e::ii_i2:ai eppor'iL::'iiiy' to persons ee envisaged under Ancieie M of Cesisiimiiori. Funiier when a tender pr-:3-::eee is adopted, it ui*:ime'«;eiy Beads :0 an eimngemeni or an Lniderstanding between the periiazecsfi wi"ii<:;h under Se<:i:ir.>n 2={i_*:-) is en egreerneni This agreement ieacie iessue oi' a purchase ere'-er. in every tender dQr:.Larnen't eniy one pe:'s=:»n gets an order anci "iihe c3ther'e do nei it This amounts to a i'C3i'E§CiOS»LiE"€% of co iipeircizuri by hindering entry into the market [Section 'i§(3) of Eh L Afiii} ...
AV-J Biii when the whoie process is tranepareni: and fair, it canine: foreciese ihe niari<e'i;, if the 'tender deciiihent is es» designed is meete barrier to i'.=€i=\f\/ eniranie in the market, then in View of eectien 19(3) (3) of ihe Act ii: ceuici Eii'T'E.i~C3(I)TT'if;')€3'ii'E.iVei We have ':0 -zzeneidei' Whether Seen-isn 3 a'i_i:rac:ied in this: ceee_ if epgsrecieieie effect '£0 czompeiiiien in india had been iziy the act; of C'=.:3"2i and C3.i3'.Z>.'. as iaid down read with the iZ.¥TO\iiSiODS mi' seciign 19(3) ine A-etiihen the provieiens of section 3{'i) ef the ' r'~+ I .\.~i, J) wee d have ai.:'ii'ec;'ied. BLITZ i'nei'e ne mai;ei'iei to 'nei«:i '-.;i'iat was any <;:r*L=:ei;i-cm of 'naniere f fei"ecio$4i'e of CC)i'T'ip8)[iTiC3Ti. 'Thei'ei'ei"e, seciieii 3("i) is not As 'far as s3eci;i<::~n 3(3) is c:c>ncei'ned if woiiid aeiy eniy when ihe parties 0.23.': and 092 were in EEiI".!"iii£i§' *-zrade which. is; n<3'?: 'ihe case here. Fer this COEHLJS-}i\/63 bidding bid rigging xwcxuid rirgii eppi'y. Thus S\,~C+i.:%O["= 3=.j3)_i's[n0i. ,f..,"{§3iiiAC:S_;*'iT)ié'~3 On iihe facts i'i'i6i'i'iiiI)i'i€id, Si:~3£:'ii<::).n 3Q .' =_-'ep§)i§,I.as none ihe factore meritiened appreciable. Thee, eer::tion 3 efthe Act week!' not appiy this case.
Before considering appreciabiiity of section act ei the Cornpe'titien Act, it is i*reoeeea:"y to define the reievant mari<et, 'event market means the market to be determined by the Ci;-rrirnieeion with re'fer'eriee to the reievant ;;3i'educ:t niarket er the reievarit geographic market or with r"eierehc;e to i:><:ith markets. in this partieiiiar ease the reievant market WOLiid the prerziaement market for high voitege cietec:tc:»re, The geogiv ehieai market weiii-ti be the area for which the OPW iieeneee for the si..ipi::i':,/ of electricity. After defining the reievant market, it is neoeeeary te examine as ie whether C=.P.'i ie a peaitieh oi cieminahee in the geegraphieai area as deiined above and the rnar'i<et fer the proeureirient of high voitage Ciii"iE3C tars. i'3e-rhinant peeitieri is :::te'iir':e-Ci in the expianetien to Section 4 the Act. As C).P.t is; the ehiy ii-oeneee this area as as the euppiy of eieetrieity ie ::enoei'ned, it can operate indeperideritiy czorripetitive toreee prevailing in the reievant market, Fiiither in the said i"eiev/ant rharket affect his CE)HSi.im€:i"S the pirrchasere its. pr0dLiet and eupeiier in its favour. in terms of the provieiene Seetiori i&3(<fi','=ijgji er' the Act has acquired the riaminance by statute as weii as by beirig a eovemment """i'i"ii'..)'i2i":Vi K.» K; .
The he><;t is to whether there has been an a'eLiee at dominance. There he cieubt that the time giveri for the et;ifr.irn'i:e'ei.o.ri°'oie__ the short. it impa::te-;{ eg§riiiijei:iti_eni1m the mari<et .\ ' ', 2-' _V \ .....'x because by the time the other CC)FT1fZ>*$*"U'iQl'S wczuid have become fime for subrmtting 'the tender papa-:3 vvc::m%d have been over. Further ac(:ordir'ag 'lie the nc:m'*ns fixed far 'Ea-3nde:'ir':g the tendea" papers ssh:-Laid 'flax/=3 been on 30.-C="/T2011 in frorwi cf? the LP. or its represewitatix/=a:~3. This was mi done. in fact HG intimation was given to the P. This procurv:~:-smervl. pracess fr:-flowed by <ZL':.P,"é appears ta :4 flair and discriminatory in accczrdance with the proviséens of seciéor:
4(2')(a')(:) of the A-Ct or may be a p:'a<::'i;ice resuiting in denial of marks':
accesses ezwvisaged in Secticm Ii:--(2){c:) of fine Act. These-3 aspect 5}') needs '£0 be 'ooked mm by Enves:E:iga'rio:'e.
"§"herefo:'e, Lmder the p-:'ov'is%<:mss of sectian 26(3) of the Cornpeiiié-Cm .»:'%\r;'L ihe DC} is directed 1:0 énvesiigate the case and :~3L:bmé'c a rep:-r"€; vx./%*:§'1in sixty days of the receipt of this crder. The S«3creia:'y is direcfia-::€ ts: semi a capy the order t<:> the Directtcsr Genera%.