9 April, 2014

On March 11, 2014, CCI started an inquiry against M/s JCB India Ltd. and M/s JC Bamford Excavators (collectively, ‘JCB’) under Section 4 of the Act for alleged abuse of dominance. The inquiry was initiated on the basis of a complaint filed by M/s Bull Machines Pvt. Ltd. (‘Bull Machines’) and appears to be the first case on the issue of “sham litigation” as a competition law violation in India.

Earlier, JCB had secured an ex-parte ad interim injunction from the High Court of Delhi against Bull Machines “from selling, offering for sale, dispatch, advertising, directly or indirectly dealing in/launching backhoe loaders in any manner.” Subsequently, JCB and Bull Machines consented to a decree whereby JCB was JCB was permitted to inspect the product in question within a specified time. JCB waited for close to 10 months and withdrew its application for ex-parte ad interim injunction without submitting any inspection report. Aggrieved by JCB’s conduct Bull Machines approached CCI alleging abuse of dominance by JCB through misuse of judicial process.

Based on a preliminary assessment, CCI reached the prima facie view that JCB had abused its dominant position in the relevant market and sought to stifle competition by denying market access and foreclosing entry of Bull Machines’ equipment in contravention of the provisions of Section 4 of the Act.

For further information, please contact:

Zia Mody, AZB & Partners
[email protected]

Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 
[email protected]

Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 
[email protected]

Aditya Bhat, AZB & Partners 
[email protected]