Case No 25/2011. Case: Amar Batteries and Electricals and Ors. Vs Tudor India Limited. Competition Commision of India
| Case Number | Case No 25/2011 |
| Judges | H.C. Gupta, P.N. Parashar, Geeta Gouri, R. Prasad and M.L. Tayal, Members |
| Issue | Competition Act, 2002 - Sections 2, 3, 3(3), 3(4), 4, 19(1), 19(5), 19(6), 19(7), 26(1) and 26(2) |
| Judgement Date | July 19, 2011 |
| Court | Competition Commision of India |
Order:
Order under Section 26(2) of the Competition Act, 2002
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The instant matter has been considered by the Commission on the basis of an information received on 30.05.2011, under Section 19(1)(a) of the Competition Act, 2002 (hereinafter referred to as "the Act"), from M/s Amar Batteries & Electricals, M/s Automen, M/s Graf-Tech Park, M/s JVC Industrial Corporation, M/s Mahajan Batteries, M/s New Delhi Motor House and Surya Battery (hereinafter, referred to as "Informants") against M/s Tudor India Limited (hereinafter referred to as "Opposite Party"), inter-alia alleging contravention of provisions of Section 4 of the Act.
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The facts and allegations as stated in the information are, in brief, as under:
2.1 The informants have submitted that they are the authorized dealers/distributors/resellers/ of batteries manufactured by the Opposite Party (OP) in Delhi and National Capital Region. They were appointed as distributors during the year 2000-2009.
2.2 The Informants have alleged that by abusing its dominant position, the OP has dictated terms upon them and compelled them to buy inferior products manufactured by it at a different price and under different schemes.
2.3 As regards the nature and manner of business, it has been submitted by the informants that the orders for batteries are placed by them telephonically or in writing and after receiving advance cheques towards the orders so placed, the OP dispatches the batteries to them along with an invoice and a warranty card for each battery.
2.4 The informants have submitted that batteries are sold in India with limited period replacement guarantee, which varies from 12 to 30 months, depending upon the guarantee provided by the manufacturers. This replacement guarantee, however, is generally effective from the date of sale to the customer/end user and not from the date of manufacturing. If any manufacturing defect is noticed in the sold batteries, the customers have to approach the Informants within the warranty period for replacement. If the complaint of the customer is found true, the battery is replaced by the Informants from their own stock and defective batteries are returned to the manufacturer for replacement.
2.5 According to the informants, earlier the defective batteries used to be replaced by the OP within a maximum period of 30-60 days, but this period has gradually increased and now it takes 2-3 years for replacement. As a result, funds of the Informants remain blocked for a longer period of time resulting into...
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