Case Law Details
Tamil Nadu Generation and Distribution Corporation Limited Vs Eastern Coalfields Limited (Competition Commission of India)
The dispute in the present Information centres around the sampling procedure. The Informant alleges that the sampling policy of CIL, whereunder the referee samples are to be kept in the premises of ECL/similar subsidiaries of CIL, has made the sampling and testing system of the dominant player vulnerable to tampering of samples by the conflicted supplier.
The Commission notes that, in present dispute, the mechanism for sampling and testing of the coals supplied to TANGEDCO is governed by the TPS agreement entered into between ECL, CIMFR, and TANGEDCO on 28.11.2016.
The Commission notes that the parties themselves have submitted that the mechanism under TPS was an improvement over the earlier sampling mechanism, where the coal samples and their testing were largely under the control of CIL and its subsidiaries. The Commission also, in previous coal cases, had found such sampling mechanism to be in contravention of the provisions of the Act. Subsequently, Ministry of Coal, Government of India, on 26.11.2015, notified guidelines on third-party sampling at the loading end after multiple levels of deliberations across various stakeholders, including power producers, Ministry of Coal, and Ministry of Power. Thereafter, Tripartite Agreement based on notified guidelines was entered into between TANGEDCO, ECL, and CSIR-CIMFR on 28.11.2016 for third-party sampling containing details on the modalities of collection, handling, storage, preparation, and ensuring safety of samples.
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