Case Law Details
A. Ram Babu Vs Indian Bank (Competition Commission of India)
Introduction: The Competition Commission of India recently addressed a complaint by Mr. A. Ram Babu against Indian Bank regarding the imposition of penalties for premature closure of term deposits. The commission’s decision sheds light on the alleged violation of Section 4 of the Competition Act, 2002.
Background and Allegations: Mr. A. Ram Babu filed a complaint against Indian Bank, accusing it of violating Section 4(2)(a) and Section 4(2)(b) of the Competition Act. The allegations stemmed from penalties imposed by Indian Bank for premature withdrawal of fixed deposit accounts, while another bank did not impose such penalties.
Market Relevance and Dominance: The commission delved into the relevant market, identifying it as the “market for the provision of term deposit services in India.” Analyzing the term deposit product, the commission emphasized the absence of evidence supporting Indian Bank’s dominance in this market.
Decision and Closure: With no established dominance, the commission concluded that Indian Bank did not contravene Section 4 of the Act. Consequently, the case was ordered to be closed under Section 26(2) of the Act. The absence of dominance negated the need for an investigation, and relief sought under Section 33 was deemed unnecessary.
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