Delhi High Court Holds DG Report Not Binding On CCI

On October 10, 2019, the Delhi High Court ('DHC') ruled that the CCI is not bound by the Director General's ('DG') report and that the Act does not bind CCI to accept the DG's recommendations.¹

SRMB Srijan Ltd. ('SRMB') entered into a Gas Sale Purchase Agreement ('GSPA') with Great Eastern Energy Corporation Ltd. ('GEECL'). The petitioner, i.e., Saurabh Tripathy (an employee of SRMB) filed information before the CCI on September 16, 2019 alleging abuse of dominant position by GEECL for imposing unfair and discriminatory conditions for supply of Coalbed Methane Gas ('CBM'). After forming a prima facie opinion that GEECL is dominant in the relevant market and that the terms of the GSPA appeared to be in favor of the GEECL and against SRMB, the CCI directed the DG by way of order dated December 29, 2014 to conduct a detailed investigation into the matter. The DG, in its investigation report, concluded that there was in fact abuse of dominance since the clauses in the