The Competitors Fee of India (CCI) has appealed a ruling by the Nationwide Firm Regulation Appellate Tribunal (NCLAT) relating to the process for issuing Present Trigger Notices (SCN) below Part 29(1) of the Competitors Act, 2002. The attraction focuses on the Tribunal’s interpretation that each the acquirer and the goal in an acquisition should obtain an SCN, a departure from the CCI’s follow of issuing the discover solely to the acquirer.
The case facilities across the CCI’s approval of AGI Greenpac Restricted’s acquisition of Hindustan Nationwide Glass & Industries Restricted. The approval was challenged by the U.P. Glass Producers Syndicate, amongst others, earlier than the NCLAT. Whereas the Tribunal upheld the approval, it noticed that the CCI ought to situation SCNs to each events within the acquisition, not simply the acquirer.
The CCI argues that the NCLAT’s interpretation of “events” below Part 29(1) is wrong and imposes an pointless burden. It additionally contended that issuing the SCN solely to the acquirer, as per present follow, fulfills the authorized necessities and aligns with the intent of the Act and Mixture Laws.
The NCLAT’s ruling might trigger delays within the approval course of, impacting enterprise effectivity.
The CCI’s attraction seeks clarification on the interpretation of “events” below Part 29(1) and maintains that its current follow of issuing SCNs solely to the acquirer is per legislative intent and needs to be upheld.
