United India Insurance Company Limited Vs Competition Commission of India (Delhi High Court)
Delhi High Court held that demand notice issued by Competition Commission of India being served during subsistence of the stay is unsustainable and liable to be quashed. Accordingly, the writ petition is disposed of.
Facts- The present Appeal has been preferred under Clause 10 of the Letters Patent, assailing the Judgment dated 11.09.2019. Notably, by the Impugned Judgment, the learned Single Judge dismissed the writ petition filed by the Appellant and upheld the Order dated 06.12.2018 along with the Demand Notices dated 01.10.2015, 17.01.2017, and 14.12.2018, issued by the Competition Commission of India, thereby affirming the CCI‘s demand for interest on the monetary penalty imposed under Regulation 5 of the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2011. The said penalty had originally been imposed by the CCI vide Order dated 10.07.2015 passed under Section 27 of the Competition Act, 2002.
Conclusion- Held that the Demand Notice dated 01.10.2015 was served during the subsistence of the stay and was therefore invalid. As a result, no interest could lawfully arise.
Held that acceptance of the CCI‘s assertion would lead to an absurd and unjust result in the present case. An appellant, despite complying with the stay and depositing the required portion of the penalty with the appellate forum, would face an impossible choice, that is, either pay the full penalty immediately, thereby defeating the purpose of the stay, or leave the penalty unpaid and incur interest. Such a situation would impose a disproportionate and inequitable burden, undermining the very objective of interim relief.
