{"id":48501,"date":"2016-05-21T12:41:18","date_gmt":"2016-05-21T07:11:18","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=48501"},"modified":"2016-07-25T17:39:00","modified_gmt":"2016-07-25T12:09:00","slug":"order-of-cci-imposing-penalty-upon-alkem-laboratories-set-aside","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2016\/05\/21\/order-of-cci-imposing-penalty-upon-alkem-laboratories-set-aside\/","title":{"rendered":"Order of CCI imposing penalty upon Alkem Laboratories, set aside"},"content":{"rendered":"

Competition Appellate Tribunal (COMPAT):\u00a0<\/strong>While rendering relief to Alkem Laboratories, its two officials, All Kerala Chemists and Druggists Association (AKCDA) and one of its officials, who were fined by CCI in a case alleging anti-competitive practices, COMPAT set aside the said judgment of CCI. The impugned judgment of CCI was passed in December, 2015, on an information filed by a distributor of medicines. The information pertained to Alkem Laboratories not supplying medicines even after agreeing to do the same. It was also alleged by the informant that Alkem Laboratories rejected the informant\u2019s application for appointment as its stockist since he failed to obtain a \u201cno objection certificate\u201d from the AKCDA. Apart from imposing a fine of Rs 74.63 crore on Alkem Laboratories, two of the company’s employees were also penalized Rs 71,371 and Rs 34,248 respectively. Further CCI had imposed a fine of Rs 4.35 lakh on All Kerala Chemists and Druggists Association (AKCDA) and one of its officials had been penalised Rs 50,203 as well in the same case. Before Tribunal, three separate appeals were filed against the said order by Alkem Laboratories and its two officials. After detailed perusal of material on record including the findings of investigation by the Joint Director General, COMPAT observed that the distributor had deliberately suppressed the material facts and documents and CCI and its Joint DG, who conducted the investigation, proceeded on a wholly erroneous assumption that the distributor had been appointed as a stockist by the competent authority of Alkem Laboratories. Whereas, Alkem Laboratories \u201chad taken a categorical stand from the day one that Shri Paul Madavana (who issued letter appointing Respondent No. 2 as a stockist) was not competent to appoint Respondent No. 2 as a stockist and this was the reason why the medicines were not supplied to him,\u201d Tribunal noted. Tribunal further noted that no proof of any demand of \u2018No Objection Certificate\u2019 was established against Alkem Laboratories. \u201cIt is also an admitted position that after his appointment as a stockist by the competent authority i.e. Appellant No. 3, Respondent No. 2 applied for supply of medicines and the needful was done without asking for NOC from AKCDA,\u201d observed the Tribunal. On the appeals filed by the officials of Alkem Laboratories, COMPAT held that there was a violation of the principles of natural justice by the CCI since no opportunity was extended to the office bearers to present their defense. \u201cOnce the Tribunal has come to the conclusion that the finding recorded by the Commission against Appellant No. 1(Alkem Laboratories) is legally unsustainable, the consequential penalty imposed by the Commission on Appellants Nos. 1, 2 and 3 cannot be sustained and is liable to be quashed,\u201d Tribunal noted while allowing all the three appeals. Although the Tribunal adversely viewed the matter of suppression of material facts by the informant, it refrained from passing any adverse order against the informant on account of the apologies tendered to the Joint Director General and the CCI. [Alkem Laboratories Ltd.<\/em>v. CCI,<\/em>\u00a0[2016] Comp AT 96<\/a>, decided on May 10, 2016]<\/p>\n","protected":false},"excerpt":{"rendered":"

Competition Appellate Tribunal (COMPAT):\u00a0While rendering relief to Alkem Laboratories, its two officials, All Kerala Chemists and Druggists Association (AKCDA) and one of <\/p>\n","protected":false},"author":3,"featured_media":48511,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[5761,3685],"class_list":["post-48501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-alkem","tag-Competition_Appellate_Tribunal"],"yoast_head":"\nOrder of CCI imposing penalty upon Alkem Laboratories, set aside | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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of Rs. 7463.10 Lakh Imposed on Alkem Laboratories for Anti-Competitive Practices","author":"Sucheta","date":"December 7, 2015","format":false,"excerpt":"Competition Commission of India (CCI): Pharma enterprise Alkem Laboratories Ltd is found guilty for causing potential consumer harm due to its anti-competitive conducts and for lessening of competition in healthcare sector in Kerala. The competition regulator in its detailed order found that Alkem was following anti-competitive dektats of All Kerala\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":301888,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/19\/any-unit-relocation-change-of-ownership-eligible-budgetary-support-scheme-sikkim-hc-legal-news\/","url_meta":{"origin":48501,"position":1},"title":"Any unit undergoing relocation, expansion, change of ownership, will not be eligible under Budgetary Support Scheme: Sikkim High Court","author":"Simranjeet","date":"September 19, 2023","format":false,"excerpt":"\u201cBudgetary Support Scheme is limited to the tax which accrued to the Central Government under the Central Goods and Services Tax Act, 2017 and the Integrated Goods and Services Act 2017, after devolution of the Central Tax or the Integrated Tax to the States.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/Sikkim-High-Court-1-886x590-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/Sikkim-High-Court-1-886x590-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/Sikkim-High-Court-1-886x590-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/Sikkim-High-Court-1-886x590-1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":364186,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/17\/del-hc-restrains-use-of-alchem-mark-in-sale-of-medical-products\/","url_meta":{"origin":48501,"position":2},"title":"Delhi High Court restrains Alchem International from using trade mark ‘ALCHEM’ in sale of medical products","author":"Editor","date":"October 17, 2025","format":false,"excerpt":"\u201cThe use of trade name \u2018ALCHEM\u2019 on the defendant\u2019s packaging material in addition to the generic names is likely to cause confusion in the mind of customers of average intelligence.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"ALCHEM","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/ALCHEM.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/ALCHEM.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/ALCHEM.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/ALCHEM.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":86751,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/11\/21\/rs-64-crore-penalty-imposed-upon-glaxosmithkline-pharmaceuticals-and-sanofi-pasteur-india-by-cci-set-aside\/","url_meta":{"origin":48501,"position":3},"title":"Rs 64 crore penalty imposed upon GlaxoSmithKline Pharmaceuticals and Sanofi Pasteur India by CCI, set aside","author":"Saba","date":"November 21, 2016","format":false,"excerpt":"Competition Appellate Tribunal (COMPAT):\u00a0While declaring the fine of about Rs 64 crore imposed upon GlaxoSmithKline Pharmaceuticals Ltd. and Sanofi Pasteur India by CCI as \u201clegally unsustainable\u201d, the Competition Appellate Tribunal set aside the order of CCI imposing the penalties. Earlier in June 2015, CCI imposed a total fine of about\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/11\/COMPAT_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/11\/COMPAT_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/11\/COMPAT_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/11\/COMPAT_1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/11\/COMPAT_1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":21481,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/10\/19\/director-general-cannot-investigate-on-the-issue-not-raised-in-the-information\/","url_meta":{"origin":48501,"position":4},"title":"Director General cannot investigate on the issue not raised in the information","author":"Sucheta","date":"October 19, 2015","format":false,"excerpt":"Competition Appellate Tribunal (CompAT): CompAT, in want of material evidence, set aside an order by the Competition Commission of India (CCI) against Andhra Pradesh Film Chamber of Commerce (APFCC) for contravention of S. 3 of the Competition Act, 2002 (e.g. entering into anti-competitive agreements and cartels). CCI had imposed a\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":362492,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/04\/cci-can-impose-behavioural-structural-penalties-under-competition-act-supreme-court\/","url_meta":{"origin":48501,"position":5},"title":"Inside Supreme Court verdict reaffirming CCI\u2019s powers to impose behavioural and structural penalties under Competition Act, 2002","author":"Sucheta","date":"October 4, 2025","format":false,"excerpt":"In the present case, CCI had imposed penalties on Kerala Film Exhibitors Federation (KFEF) and its office-bearers for indulging in anti-competitive practices, which were then reversed in part by COMPAT.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"behavioural structural penalties under Competition Act","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/behavioural-structural-penalties-under-Competition-Act.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/behavioural-structural-penalties-under-Competition-Act.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/behavioural-structural-penalties-under-Competition-Act.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/behavioural-structural-penalties-under-Competition-Act.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/48501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=48501"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/48501\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/48511"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=48501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=48501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=48501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}