M/s. Kishan Cold Storage v. United Bank of India & Ors.
Case brief
What is this about?
The Competition Commission of India closed an inquiry initiated by a cold storage firm alleging a tie-in arrangement involving a bank and insurance company. The Commission held the matter fell outside the Competition Act due to lack of evidence regarding abuse of dominance and because the cause of action predated the Act's enactment.
What did the court decide?
The proceedings relating to the information were closed forthwith.
What the court decided
COMPETITION COMMISSION OF INDIA
31.8.2010
Case No 27/2010
Filed by: M/s Kishan Cold Storage, Through: Shri Jay Kishor Singh, Advocate
Against: (1) United Bank of India, Bhagalpur Branch, Bihar and (2) Bajaj Allianz General Insurance Co. Ltd., Patna, Bihar.
ORDER UNDER SECTION 26(2) OF COMPETITION ACT, 2002
The informant is a partnership firm in the cold storage business for preservation of foodstuffs. The opposite party No.1 is a bank which has sanctioned loan to the informant. The opposite party no.2 is an insurance company which provided insurance cover to the informant firm.
- The instant information has been filed by the informant through its counsel on 9.7.2010 under section 19 of the Competition Act alleging that the informant had to purchase the insurance policies through the opposite party no.1 as a condition to get loan from it as the opposite parties entered in tie-in arrangement. The informant has alleged that opposite party no.1 by abusing its dominant position has acted in connivance with opposite party No.2 which has caused the informant huge loss.
- The informant has supported the allegations by filling relevant material which is enclosed as annexures to the information. Shri Jay Kishor Singh, advocate appearing on behalf of the informant elaborated the case of the informant in the ordinary meeting of the Commission held on 31.8.2010.
Issues for consideration
3 issues framed by the court
Whether allegations of a tie-in arrangement between a bank and an insurance company abusing dominance fall under the Competition Act, 2002.
Whether the claim for defective insurance and loan conditions establishes an appreciable adverse effect on competition.
Whether the cause of action arising prior to the enactment of the Competition Act, 2002 precludes jurisdiction.
Parties & counsel
- applicant
M/s Kishan Cold Storage
- respondent
United Bank of India, Bhagalpur Branch
- respondent
Bajaj Allianz General Insurance Co. Ltd., Patna
Case details
As recorded by the court registry
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