Court restrains CCI in probe against JCB

V. Rishi Kumar Hyderabad | Updated on October 01, 2014 Published on October 01, 2014

The Delhi High Court has stayed further proceedings by the Competition Commission of India against the construction equipment major JCB India, part of the UK-based multinational JC Bamford Excavators Ltd.

The CCI had recently conducted a raid on JCB premises. This was part of a probe initiated by CCI based on a complaint by Bull Machines, contending that JCB had misused its dominant position to put off competition.

In a recent order passed by the High Court, the Director-General, Competition Commission of India, has been asked to file a personal affidavit indicating the material available and the reasons that prompted him to take the drastic action.

It ordered that the material placed before the magistrate is separately placed before the court on the next date of hearing.

The Court had earlier raised issues about the substantial question of jurisdiction of respondent No.1 to entertain petitions in the proceedings.

Citing the case of Telefonaktibolaget LM Ericsson Verses CCI, the Court stayed further proceedings in the matter and also directed that all the hardware seized by the CCI would be placed in a sealed cover and kept in safe custody by respondent No.1.

Responding to the development, JCB in a statement said, “We are pleased with the outcome.”

“JCB invests heavily in product research and development and as a reputable global manufacturer of construction equipment, the company will always protect its intellectual property and take all necessary steps to prevent product copying.”

It further said, “JCB will defend its reputation for innovative product design, a reputation that has been earned over many decades through investment in R&D and the hard work of many people who work for JCB, both in India and elsewhere in the world.”

Published on October 01, 2014
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