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Top court stays tribunal order against carmakers in spare parts case

By Maulik Vyas

  • 06 Feb 2017
Top court stays tribunal order against carmakers in spare parts case
Other | Credit: Reuters

The Supreme Court has stayed an order of the Competition Appellate Tribunal that held the Indian units of three carmakers guilty of adopting anti-competitive practices in the market for spare parts, two people familiar with the development said.

A division bench comprising Justice Dipak Misra and Justice R Banumathi, on 3 February, stayed the tribunal’s order against Nissan Motor India Pvt Ltd, Ford India Pvt Ltd and Toyota Kirloskar Motor Pvt Ltd, the people said, asking not to be named.

The carmakers didn’t respond to email queries seeking comment.

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The three car companies had approached the Supreme Court last month to get relief from the tribunal’s order.

The tribunal had, on 9 December, dismissed the carmakers’ appeals against an order of the Competition Commission of India and directed them to remove curbs on original equipment suppliers selling spare parts.

But the three-member tribunal, headed by former Supreme Court judge GS Singhvi, reduced the penalty to 2% of each company’s turnover from spare parts only and not all products and services. The CCI had imposed a penalty of 2% of each company’s total revenue.

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According to the Supreme Court website, law firm Shardul Amarchand Mangaldas & Co is representing Nissan Motors in the case. Ford Motors and Toyota Kirloskar are being represented by law firms J Sagar Associates and AZB & Partners, respectively.

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