Competition Commission of India: The Competition Commission of India (CCI) issued an order stating that SCCL is not dominant in the relevant market. Hence, no case of contravention of the provisions of Section 4 of the Competition Act, 2002 is made out against SCCL.
Karnataka Power Corporation Limited (KPCL) has filed the instant information against the SCCL challenging the various clauses of Fuel Supply Agreements entered into between them pertaining to grade slippage, sampling procedure, deemed delivery, fixed non-negotiable price of coal etc. as being abusive of its dominant position.
The Commission notes that the relevant market in the present case is the “production and sale of non-coking coal to thermal power generators in India”. The statistics show that SCCL produces a meagre amount of non-coking coal in the relevant market (9.52% in 2014-2015 & 10.44% in 2015-2016). Also, SCCL is competitor to CIL and therefore SCCL is not dominant in the relevant market.
The Commission views that the alleged dispute between the parties appears to be a commercial dispute involving no competition concern, the remedy would lie elsewhere and KPCL is at liberty to pursue its remedies before the appropriate forum. [In Re Karnataka Power Corporation Ltd., 2017 SCC OnLine CCI 24, Order dated 12.06.2017]