BSNL deploys One Lakh Indigenous 4G Sites; Network 5G-Ready: Scindia (See 'Corp Brief') ECI organises EVM/VVPAT Awareness Campaign in Poll-bound States (See 'Corp Brief') Trade Marks - non-use of a mark filed on proposed-to-be-used basis is irrelevant for assessing registrability of the mark: HC (See 'Legal Desk') Medicinal Plants sector to drive Viksit Bharat 2047: MoS (See 'Corp Brief') IBC/RTI - appellant cannot seek disclosure of internal notings & replies under RTI Act when same issue has already been disposed of earlier: IBBI (See 'Legal Desk') India designated Country of the Year at BIOFACH 2026, Germany (See 'Corp Brief') Delhi-NCR to be strengthened with expansion of Continuous Ambient Air Quality Monitoring Stations (See 'Corp Brief') A&C - Applications for extending arbitral tribunal's mandate u/s 29A(4) must be filed exclusively before principal civil court of original jurisdiction: SC (See 'Legal Desk') RBI rolls out measures to strengthen Cooperative Banks' Financial Health (See 'Corp Brief') A&C - Arbitral proceedings are set to commence on date of receipt of notice invoking arbitration clause: SC (See 'Legal Desk') IWAI facilitates ODC Movement via Inland Waterways to Boost Assam's Semiconductor Ecosystem (See 'Corp Brief') A&C - Under pre-2015 amendment regime, once party consents to court order appointing arbitrator, they cannot subsequently challenge existence or validity of arbitration clause before arbitral tribunal: SC (See 'Legal Desk') Prasada inaugurates STQC Lab Automation Portal 'SATYA' (See 'Corp Brief') Indian Delegation visits Vietnam to Open New Opportunities in Silk, Sericulture & Handloom (See 'Corp Brief') Paswan releases Plastic Industry Status Report 2025 (See 'Corp Brief') Trade Mark - prior user rights override subsequent registration, particularly where adoption of deceptively similar subsequent trade mark, is not bona fide & is aimed at riding on existing goodwill of existing trade mark: HC (See 'Legal Desk') CCI registered 54 cases of anti-competitive practices in 2025 (See 'Corp Brief') National Institute of Ayurveda reaffirms role as global centre for education & patient care (See 'Corp Brief') Electronic Interlocking rolled out at 34 Railway Stations of N-E (See 'Corp Brief') PMLA - Objectives of enacting PMLA 2002, was attachment and confiscation of proceeds of crime which is quintessence so as to combat evil of money-laundering: SAFEMA (See 'Legal Desk') Khelo India Multipurpose Hall at SAI Sambhajinagar is addition to Olympic readiness: MoS (See 'Corp Brief') PM addresses community programme in Kuala Lumpur (See 'Corp Brief') A & C - mandate of arbitrators appointed unilaterally by one party, merits being terminated, where the other party explicitly refuses to waive applicability of Section 12(5) of the Act: HC (See 'Legal Desk') India-US Trade Agreement: Major boost for Textile Industry (See 'Corp Brief') IBC - In unavailability of adequate document/information and considering effect of limitation period, assigning of 'zero' value to trade receivables, without any due justification, is not appropriate: IBBI (See 'Legal Desk') India has signed MoUs with 23 countries for cooperation on Digital Public Infrastructure (See 'Corp Brief') A&C - Once arbitral tribunal has adopted plausible & reasonable interpretation of facts and contractual terms, courts cannot re-appreciate evidence or sit in appeal over award: SC (See 'Legal Desk') Railways inspects All Bridges Twice a Year (See 'Corp Brief') A&C - Permitting a civil suit to challenge an award confirmed by the Supreme Court would undermine the arbitral framework and public confidence in arbitration: HC (See 'Legal Desk') Over 1.25 lakh Livestock Farmers joined Virtual Awareness Program: MoS (See 'Corp Brief') A & C - Referral court not required to conduct detailed or contested inquiry & must limit itself to ascertaining whether underlying contract contains an arbitration clause covering disputes between the parties: HC (See 'Legal Desk') Pariksha Pe Charcha marks First-Ever multi-location nationwide engagement (See 'Corp Brief') SEBI - If Noticee violated regulation 23(1) and 23(4) of LODR Regulations as alleged in SCN, Noticee is liable for payment of monetary penalty in terms of section 15HB of SEBI Act: SEBI (See 'Legal Desk') TRAI issues Telecommunication Services Interconnection Regulations, 2026 (See 'Corp Brief') Trade Marks - Procedural defects & inadvertent errors which are curable should not be permitted to defeat substantive rights, unless shown to be deliberate, mala fide, or prejudicial to opposite party: HC (See 'Legal Desk') The Securities Markets Code, 2025: Strengthened Enforcement, Weakened Accountability? (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.

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