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ARTICLE · 21 APRIL 2020

NCLAT Sets Aside CCI Order İmposing Penalty On Eli Lilly For Gun Jumping

The National Company Law Appellate Tribunal, has set aside the Competition Commission of India on M/s Eli Lilly and Company for gun jumping.

IndiaAntitrust/Competition Law

The National Company Law Appellate Tribunal, vide judgment dated 12.03.2020, has set aside the Competition Commission of India ("CCI/Commission") order dated 14.07.2016 imposing a fine of INR 1 crore on M/s Eli Lilly and Company ("Eli") for gun jumping i.e. for not notifying its acquisition of Novartis Animal Health in India ("NAH") within the prescribed limit.

Background

Eli- a company based in the United States agreed to acquire the global animal health business of Novartis AG pursuant to a Stock and Asset Purchase Agreement ("SAPA") dated 22.04.2014 covering the global portion of the transaction. The transaction was publicly announced and notified under the merger control laws in several jurisdictions around the world including the United States and the European Union and the transaction was cleared in each jurisdiction and closed on 01.01.2015.

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