Case No. 22/2013. Case: Kanwal Jit Singh Informant Vs India Yamaha Motors Pvt. Limited. Competition Commision of India

Case NumberCase No. 22/2013
CounselFor Appellant: Mr. Tejinder Pal Singh, Advocate
JudgesAshok Chawla, (Chairman), H.C. Gupta, Member (G), Geeta Gouri, Member (GG), Anurag Goel, Member (AG), M.L. Tayal, Member (T) and Shiv Narayan Dhingra, Member (D)
IssueCompetition Act, 2002 - Sections 19(1)(a), 2(s), 26(2), 4
Judgement DateJuly 01, 2013
CourtCompetition Commision of India


Order under Section 26(2) of the Competition Act, 2002

  1. The information was filed under section 19(1)(a) of the Competition Act, 2002 (the 'Act') by Kanwal Jit Singh (the 'Informant') against India Yamaha Motors Pvt. Limited (the "Opposite Party") alleging abuse of dominance for contravention of the provisions of Section 4 of the Act. The Informant contended that he was appointed authorized dealer by the Opposite Party, in 2007, for sale of its motorcycles, spare parts and accessories in Ambala Cantonment area because he was already an established name and had a showroom at a strategic location in Ambala. The Informant was given exclusive dealership and was authorized by the Opposite Party to appoint sub-dealers in other areas in Ambala Cantonment. The exclusive dealership of the Informant was for economy (100cc), deluxe (150cc) and premium (150cc) segments of motorcycles in different price ranges. The economy segment of motorcycles was between Rs. 35,000 - Rs. 45,000 and the deluxe and premium segment motorcycles started from Rs. 55,000 and Rs. 1, 00,000 respectively. The Informant alleged that he incurred huge expenditure in renovation and equipping his show room to display/show case the motorcycles of the Opposite Party. As a result of efforts of the Informant over a period of about 5 years, i.e. from 2007 to 2012, the market share of the Opposite Party increased from 0.50% to 12%. The Informant has also highlighted the sales figures of motorcycles of the Opposite Party in Ambala, for 5 years, as under:-

  2. The Informant contended that initially there was no market for the economy segment motorcycles of the Opposite Party and only deluxe and premium segment motorcycles were in demand in Ambala and as such stocks were maintained by the Informant at minimum levels. The Informant has also opened outlets at Dosarka and Kharga Shopping Complexes. He was constantly being pressurized by the Opposite Party to appoint more sub-dealers, although it was not commercially viable for the Informant to open more outlets. The Informant explained to the Opposite Party about the market conditions and about demand of only deluxe and premium segment motorcycles. Despite this, the Informant, learned about another dealer being appointed in that area. The Informant also sent an email to the top management of the Opposite Party about rumours of appointment of other dealer(s) in Ambala and he was assured that no other dealer would be appointed in that...

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