Geep Industries (India) Pvt. Ltd. & Ors Vs Competition Commission of India (Delhi High Court)
Geep Industries (India) Pvt. Ltd. & Ors v. Competition Commission of India (CCI) involves a challenge to an order passed by the CCI on July 18, 2023, directing the petitioners to deposit interest on a penalty amount for a specific period. The petitioners argue that the CCI lacked the authority to demand interest without following the prescribed procedure outlined in the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2011 (2011 Regulations).
The case arose from proceedings initiated against Geep Industries and its directors under the Competition Act, 2002. The CCI’s order of August 30, 2018, directed the petitioners to cease cartelization activities in the dry cell batteries market and imposed penalties. The penalties were challenged before the National Company Law Appellate Tribunal (NCLAT), which partially upheld the penalties. During the appeal’s pendency, the CCI’s order was stayed subject to Geep Industries depositing 10% of the penalty amount.
Following the NCLAT’s order on March 31, 2023, reducing Geep Industries’ penalty, the CCI issued demand notices for the penalty amount and directed the petitioners to pay simple interest of 1.5% per month from December 10, 2018, till the date of payment. The petitioners contested this, arguing that the CCI could only levy interest according to the 2011 Regulations.
