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Compat quashes Rs1,773 crore CCI penalty on Coal India

New Delhi: The Competition Appellate Tribunal (Compat) on Tuesday quashed a 2013 decision of the antitrust regulator which imposed a Rs.1,773 crore fine on Coal India Ltd (CIL) and three of its subsidiaries for misusing their monopoly to supply poor quality coal and fixing prices.

At least two other Competition Commission of India (CCI) orders against CIL and subsidiaries were also similarly set aside. Compat sent the cases back to the CCI to be heard again within two months.

“The question whether a person, who is a member of an adjudicatory body and has not heard the parties, can adjudicate upon their rights and/or pass an order adversely affecting either party …must be answered in negative in view of the judgements of the Supreme Court...

“The functions performed by the bodies like the Commission which are clothed with the power to decide the rights of the parties or pass order adversely affecting a person are quasi-judicial in nature and are bound to comply with different facets of the principles of natural justice,” the 78-page Compat ruling said.

“Our stand is vindicated. The CCI order has been set aside and the matter has to be heard de nuevo (afresh) by the Commission,” said S.N. Prasad, director (marketing), Coal India Ltd.