Reydel Automotive Holding B.V.
Case brief
What is this about?
The Competition Commission of India initiated proceedings against Reydel Automotive Holdings B.V. for failing to notify a combination under Section 6 of the Competition Act, 2002. The Commission rejected the argument for Target Exemption due to asset attribution rules and imposed a penalty of INR 25 lakhs, noting that intent is irrelevant to penalty liability.
What did the court decide?
Penalty of INR 25,00,000 imposed on the Acquirer to be paid within sixty days.
What the court decided
A compact analysis
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Fair Competition For Greater Good
COMPETITION COMMISSION OF INDIA
(Combination Registration No.C-2015/08/298)
02.02.2017
Order under Section 43A of the Competition Act, 2002 (“Act”) in relation to the inquiry initiated under sub-section (1) of Section 20 of the Act against Reydel Automotive Holdings B.V.
Background
- The Competition Commission of India (“ Commission ”) in its meeting held on 05.03.2015, took suo motu cognisance of the acquisition by Cerberus Capital Management LP (“ Cerberus ”) of Visteon Interiors System India Private Limited (“ VISI ”) and the automotive interiors business of Visteon Automotive Systems India Private Limited (“ VASI ”). The transaction came to the notice of the Commission during the assessment of Combination Case bearing Registration No. C -2015/01/242 filed by Hahn & Co. Auto Holdings Co., Ltd. and Hankook Tire Co., Ltd. The Commission observed that the above said acquisition by Cerebrus was not notified under sub-section (2) of Section 6 of the Act. Accordingly, a communication dated 16.03.2015 was issued to Cerberus under subsection (1) of Section 20 of the Act. The response(s) to said communication was filed by Reydel Automotive Holdings B.V. (“ Acquirer ” or “ Reydel ”, earlier known as Promontoria Holding 103 B.V.), a company wholly controlled by Cerberus, on 15.04.2015 and 18.05.2015 (subsequently revised on 27.05.2015).
Issues for consideration
3 issues framed by the court
Whether the acquisition of VISI by Reydel constituted a combination attracting mandatory notification under Section 6 of the Competition Act, 2002 despite the Acquirer's claim of Target Exemption.
Whether penalty under Section 43A of the Competition Act, 2002 is attracted even if the violation was committed without guilty intention.
What quantum of penalty is appropriate for the failure to file a notice and giving effect to the combination prematurely.
Parties & counsel
- applicant
Reydel Automotive Holdings B.V.
Case details
As recorded by the court registry
All orders in this case
2 orders share this CNR
- Order 1
- Order 2 — this page
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