The Competition Appellate Tribunal has stayed the sale of Lafarge India’s 11 million tonne cement capacity across Chhattisgarh, Jharkhand, Rajasthan, Haryana and West Bengal till the next hearing.

Passing an interim order on a petition filed by Dalmia Cement, the Tribunal on Wednesday said Lafarge has no provision to seek modification in a final order passed by the Competition Commission of India.

Dalmia Cement also challenged the Commission’s restriction stating that the acquirer of Lafarge asset should not have installed capacity exceeding five per cent of the total installed capacity in the eastern region.

The restriction barred many existing players from bidding for Lafarge India shareholding, said Luthra & Luthra Law Offices, which represented Dalmia Cement at the Tribunal.

Last March, the Commission cleared the merger of Holcim and Lafarge with the condition that Lafarge should sell 5.5 million tonnes of capacity at Sonadih and Jojobera so that the merger does have adverse impact in the Eastern market.

Lafarge had to call off its proposed deal with Birla Cement to sell 5.5 million tonnes as the Mining and Minerals Development Act does not allow transfer of limestone mining lease along with the sale of asset.

Following this, Lafarge put its entire 11 million tonne capacity on the block and it was approved by the Commission in February.

On April 5, Dalmia, which was interested in buying the 5.5-million-tonne capacity, filed an appeal before the Tribunal challenging the validity of the second CCI order passed in February claiming that the Commission has no jurisdiction to clear a new proposal as there is no provision in the Law that can allow modification to an order already approved.

On Wednesday, the Tribunal agreed with Dalmia that the CCI had no jurisdiction to pass the order and the parties do not have the power to move any application to modify a final order under Section 31 of the Act.

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