COMPAT's Underwhelming Power: LPG Cylinder Manufacturers' Cartel

The Competition Appellate Tribunal (COMPAT), through an order earlier this year, remanded the LPG cylinder manufacturers' cartel case back to the Competition Commission of India (CCI), for assessing the imposition of penalty under Section 27(b) of the Competition Act, 2002 (Act). This is the second time the COMPAT has remanded this case to the CCI for assessing the penalty, the first time being through its order dated 20th December 2013. Although the COMPAT had agreed with the findings of the CCI on the instances of cartelization, it did not agree with the quantum of penalty that was imposed on all the 44 LPG cylinder manufacturers.

It is pertinent to note that under provisions of sub-section 3 of Section 53B of the Act, on receipt of an appeal, the COMPAT may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the direction, decision or order appealed against.