Chouhan calls for Scientific Monitoring for Rabi Season 2026 (See 'Corp Brief') MoS pitches for wider Govt-Industry and Start-up collaboration in Space Sector (See 'Corp Brief') IPR - Registered proprietor of well-known trademark is entitled to immediate ex-parte injunctive relief against anonymous entities operating rogue websites with masked identities: HC (See 'Legal Desk') PM-MKSSY transforming Risk Management for India's Aquaculture Farmers (See 'Corp Brief') IPR - If both trademark infringement and passing off causes of action arise in Kerala, plaintiff cannot invoke Sec 134(2) of Trade Marks Act to club claims and force small Kerala-based defendant to litigate in Mumbai: HC (See 'Legal Desk') Nadda reviews Progress of Lady Hardinge Medical College (See 'Corp Brief') A&C - For awarding damages u/s 73 of Contract Act, proof of loss or injury is sine qua non, and Hudson Formula is no substitute for proof of damages: HC (See 'Legal Desk') CBN Rajasthan Unit seizes nearly four tonnes of contrabands (See 'Corp Brief') Ministry of Tourism exchanges MoUs with industry partners to strengthen tourism promotion (See 'Corp Brief') India moving from Defence Importer to Trusted Global Defence Supplier: RM (See 'Corp Brief') A & C - High Court erred in holding that petitions filed u/s 34 of the Act were barred by limitation, considering that applications were filed well within statutory limitation period: SC (See 'Legal Desk') NZP to celebrate Wildlife Week 2026 from 2nd - 8th October 2026 (See 'Corp Brief') HM launches various initiatives related to women empowerment in Kollam (See 'Corp Brief') Medical colleges rise from 387 to over 800: Patel (See 'Corp Brief') TradeMarks - When special law like Trade Marks Act restricts institution of suits to courts not inferior to District Judge, it remains entirely consistent with Commercial Courts Act, provided High Courts designate District Judges as commercial courts - case referred to Larger Bench: SC (See 'Legal Desk') ICAT marks 20 Years of Excellence with PM e-Drive Dialogue with the industry (See 'Corp Brief') From Rural Needs to Real-World Solutions: RuTAG 2.0 focuses on deepening Technology Impact (See 'Corp Brief') India International Water Week 2026 concludes with Focus on Climate-Resilient Management (See 'Corp Brief') A&C - Period of limitation u/s 34(3) of Arbitration Act must be reckoned from date of disposal of Sec 33 application, regardless of whether such application is ultimately found to be frivolous or sham: HC (See 'Legal Desk') Board reviews measures for Trader Welfare and Export Promotion (See 'Corp Brief') IPR - Civil remedy u/s 55 of Copyright Act can be pursued through arbitration as agreed alternative dispute resolution mechanism: HC (See 'Legal Desk') DRI seizes 9.40 kg gold worth Rs. 15 crore at Mumbai airport (See 'Corp Brief') NLMC concludes 3-City Investor Outreach Programme for RINL Land E-Auction (See 'Corp Brief') A&C - If a company is employed as conduit for shielding assets from creditors, Court may look beyond corporate structure, for piercing veil: HC (See 'Legal Desk') MEE-TR 2026 to introduce 'Solid Waste Management' as separate Evaluation Criterion of Tiger Reserves (See 'Corp Brief') IPR - If party adopts mark that is deceptively similar to registered mark for identical goods, with full knowledge of prior statutory and common law rights, such adoption constitutes infringement: HC (See 'Legal Desk') Nadda inaugurates Arogya Manthan 2026, marking 8 years of AB PM-JAY (See 'Corp Brief') IPR - Requiring plaintiff to sue at place of its subordinate office because cause of action has arisen there would amount to re-writing Sec 134 of Trade Marks Act: HC (See 'Legal Desk') Union Minister inaugurates Seva First Innovation Challenge at IISc Bengaluru (See 'Corp Brief') Companies Act - Admission of winding-up petition, appointment of provisional liquidator or liquidator, or possession of assets by liquidator does not, by itself, establish irreversibility thereof: HC (See 'Legal Desk') Bharat CPSEs' Consultative Conclave inaugurated at Gati Shakti Vishwavidyalaya (See 'Corp Brief') Competition - Formulation of technical specifications & procurement requirements falls primarily within domain of procuring entities, which are at liberty to set terms suited to their needs - no case of contravention of Sections 3 or 4 is made out: CCI (See 'Legal Desk') SAIL's 54th AGM highlights strong value added steel growth (See 'Corp Brief') An unsuccessful 'success fee' litigation (See CORP EINSICHT)

South Asia LPG Company penalized Rs 19.07 Cr for abuse of dominant position

Published: Jul 11, 2018

BY TIOLCorplaws News Service

NEW DELHI, JULY 11, 2018: THE Competition Commission of India today held the South Asia LPG Company Pvt. Ltd. (SALPG) to be guilty of abuse of dominant position for terminalling services at Visakhapatnam Port. In this regard, the competition watchdog imposed a penalty of Rs 19.07 crores on the company.

The case pertained to access to upstream LPG terminalling infrastructure at Vishakhapatnam Port. Such infrastructure comprises of several components such as unloading arms at the jetty, blender, heat exchanger and cavern (storage facility). Such infrastructure being operated by SALPG is used for handling imports of propane and butane and their blending into LPG. The East India Petroleum Pvt. Ltd. (EIPL) filed an information with CCI under Section 19(1)(a) of the Competition Act, 2002 (Act) alleging that while allowing it to use the blender, the SALPG has been insisting on mandatory use of cavern. This resulted inpaying significant charges to SALPG. The OMCs were thus not finding the LPG terminalling services offered by EIPL economically viable and were constrained to avail the terminalling services offered by the SALPG only. To address this, the EIPL first proposed to use the blender of SALPG and thereafter, take the output directly to the cross-country pipeline, bypassing the cavern. Since this was not agreeable to the SALPG which allowed bypass of cavern to the extent of 25% only, the EIPL proposed to install its own blender, and sought a tap-out and tap-in from the propane and butane lines to discharge blended LPG, bypassing the cavern. This was also not acceptable to the SALPG. Another proposal seeking tap-out from the propane and butane lines at jetty to EIPL own blender and construction of its own infrastructure between the blender and storage facility, was also refused by the SALPG. All this was alleged to be abuse of dominant position by SALPG.

The investigation by the Director General revealed that the SALPG enjoys dominant position in the market for upstream terminalling services at Visakhapatnam Port. Although the SALPG attempted to justify its conduct on grounds of safety & efficiency of business operations, the commission held such conduct to be in contravention of the provisions of Section 4 of the Act. A penalty of Rs 19.07 crores was also imposed on the SALPG for indulging into the anticompetitive conduct.Thereafter, the CCI directed that the SALPG would not insist mandatory use of its cavern and would allow bypass of cavern for both pre-mixed and blended LPG, without any restrictions.

The Commission further held that the SALPG would allow access to its competitors, potential as well as existing, to the terminalling infrastructure at Visakhapatnam Port, subject to compliance with all safety integrity and other requirements under applicable laws and regulations framed thereunder. Such an access should avoid additional cost burden on the SALPG, and the entity seeking access would bear the cost, if any, towards necessary changes to the existing infrastructure. Under this option also, SALPG would not insist on mandatory use of cavern and it would allow bypass of cavern, without any restriction. The SALPG would extend full cooperation for the study or audit undertaken by VPT in relation to the remedies ordered herein. Needless to say, the SALPG would not do anything raising rival's cost.

TIOL CORP SEARCH

TIOL GROUP WEBSITES