Case No. 11/2011. Case: Kanazia Digital Systems Vs The Airport Authority of India. Competition Commision of India

Case Number:Case No. 11/2011
Party Name:Kanazia Digital Systems Vs The Airport Authority of India
Issue:Competition Act, 2002 - Sections 2, 3, 4, 4(1), 4(2), 19, 26(1) and 26(2); General Financial Rules, 2005
Judgement Date:April 26, 2011
Court:Competition Commision of India
 
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Judgment:

  1. The information in the present case has been filed by Kanazia Digital Systems Pvt. Ltd. (hereinafter referred to as "the informant") against the Airport Authority of India {hereinafter referred to as "AAI") under Section 19 of the Competition Act, 2002 (hereinafter referred to as "the Act") for its alleged abuse of dominant position in procurement of bollards and tyre killers. The Central Vigilance Commission has been made as proforma party in the case.

  2. The facts as stated in the information, in brief, are as under:

    2.1. The informant, Kanazia Digital Systems Pvt. Ltd, is a registered company and is engaged in the development of telecommunication networks, security systems such as video surveillance system, display systems and traffic management systems, etc. both for the public and private sector companies like Air India, Bhabha Atomic Research Centre, Bharti Cellular, GAIL, Procter & Gamble and Reliance Industries Ltd. The Opposite Party, AAI, is a body constituted by an Act of Parliament under the Ministry of Civil Aviation, Govt. of India and is entrusted with the responsibility of creating, upgrading, maintaining and managing civil aviation infrastructure both on the ground and air space in the country. The Central Vigilance Commission is the chief vigilance body of the Govt. of India entrusted inter alia with the task of framing and endorsing guidelines on procurement governance for the government bodies.

    2.2. For the development of Airports, the AAI floated a notice for inviting the tender for procurement and installation of Tyre Killers and Bollards on 15.05.2010 and the said notice was cancelled on the same day by the AAI without citing any reasons. Again on 13.09.2010, the AAI refloated the tender notice for procurement and installation of bollards with certain modifications and some additional terms and conditions.

    2.3. The informant has stated that bollards are rigid or retractable posts used to close a road or path to vehicles. Bollards can be mounted at entrances to security sensitive infrastructures and are also installed below the road surface. Their retractability takes place either through pneumatic cylinders and pumps or hydraulic cylinders and pumps or more sophisticated electro-mechanical motorized mechanism. Bollards installation is basically civil work which is outsourced by the bidder and actual installation of the bollards and the controllers do not require any special skills. These are the important...

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