Rajasthan Cylinders and Containers Limited V. Union of Indiaand Another (2018 SCC Online Sc 1718)

Abstract

Appellants in this case are manufacturing LPG gas cylinders of aparticular specification having capacity of 14.2 kg which are needed for use by the three oilcompanies in India, namely, IOCL, Bharat Petroleum Corporation Ltd. (BPCL) and HindustanPetroleum Corporation Ltd. (HPCL) [all public sector companies]. Apart from the aforesaid three companies there are no other buyers for these cylindersmanufactured by the appellants. IOCL is a leading market player in LPG with 48% market share. On the basis of the information received the CCI proceeded against LPG cylinder manufacturers who alleged colluded with each other through collusive bidding. CCI found their conduct in violation of the section 3(3) of the Competition Act. COMPAT, on appeal upheld the decision of the CCI and imposition of penalties on 45 bidders through its decision in 2013. However, COMPAT reduced the penalties. Out of the 45, 44 of the bidders filed appeal to the Supreme Court, which were clubbed together in the instant case. CCI too filed a counter appeal against reduction of penalty by COMPAT.