Delhi HC dismisses contempt petition against CCI in conveyor belt cartel case, imposes costs on Forech

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The Delhi High Court dismissed a contempt petition filed by Forech India against the Competition Commission of India (CCI), asserting that the respondents did not willfully disobey court orders. Justice Dharmesh Sharma also imposed a cost of ₹1,00,000 on the petitioner (Forech) for delaying the investigation and misusing the court’s time.

“…the petitioner (Forech) has failed to demonstrate that the respondents (CCI) have committed contempt of this court’s directions. The Commission possesses independent and plenary powers to shape the investigation methodology and timeline. In reality, while the petitioner ostensibly seeks contempt proceedings, it is attempting to secure a judicial review of the investigation methodology through the back door, which cannot be entertained”, noted Justice Sharma while dismissing the plea and added that CCI has not deviated from or watered down the court’s directions in any way. 

“Therefore, the contempt petition is dismissed with a cost of ₹1,00,000 upon the petitioner for using delaying tactics and trying to stall the ongoing investigation, ultimately wasting this Court’s precious time”.

The petition alleged that the CCI failed to comply with directions issued in previous judgments, including a 2015 Delhi High Court order and subsequent rulings. 

The case originates from an investigation into alleged cartelization in the conveyor belt sector, with Forech India claiming that the CCI did not furnish requested documents and information as mandated.

The court held that the CCI’s actions, including its modified directives in March 2021 and subsequent orders in May 2024, adhered to the framework set by earlier judgments. 

The court noted that procedural delays and technical challenges in record-keeping do not amount to contempt.

Justice Sharma emphasized that contempt requires deliberate and willful defiance of judicial orders, which was not evident in this case. The court also noted the scale of the investigation, involving 17 parties and over two lakh pages of documents, making immediate compliance impractical.

The CCI has been directed to conclude the investigation within 120 days while ensuring all parties have access to non-confidential records and opportunities for cross-examination, as required by law. 

The petitioner has been instructed to pay the costs to the Delhi High Court Legal Services Committee within three weeks.

Economy watchers said this ruling underscores the court’s view that procedural challenges in large-scale investigations must not be mistaken for non-compliance. It highlights the judiciary’s balance between upholding procedural integrity and expediting justice.

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