In a significant judgment, Delhi High Court dismissed Ultratech's writ petition (under Article 226 of the Constitution of India) challenging the order of the Competition Commission of India (CCI) impleading Builders Association of India (BAI) as a party in a cement cartel matter. Delhi High Court held that the CCI's order impleading BAI's takes into consideration the twin tests namely substantial interest in the outcome of the proceedings and public interest as per Regulation 25 of the CCI (General) Regulations, 2009. Further, that the Delhi High Court cannot substitute the opinion of CCI unless the same is perverse and unreasonable. Delhi High Court agreed with BAI that the opinion/ impleadment of the BAI (members of which consume 70% cement in India) shall be for the benefit of CCI especially when the proceedings under the Competition Act, 2002 are 'in rem'.
This is the first case under the Competition Act, wherein the impleadment of an interested party has been challenged by a company under investigation for cartelisation.
Client: Builders Association of India
Ultratech Cement Ltd. v. Competition Commission of India & Anr.