Case No. 19 of 2013. Case: Quadrant EPP Surlon India Ltd. Vs INA Bearings India Pvt. Ltd. and Ors.. Competition Commision of India

Case NumberCase No. 19 of 2013
CounselFor Appellant: Mr. Manoj Kumar Garg, Advocate and Mr. R.K. Singh, (Assistant Manager, Quadrant EPP Surlon India Ltd.)
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(5), 19(7), 2(r), 2(s), 2(t), 26(1), 26(2), 3, 3(3), 3(4), 4, 4(2)(a)(i)
Judgement DateMay 27, 2013
CourtCompetition Commision of India


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

1. The information was filed by Quadrant EPP Surlon India Ltd. ('the informant') against INA Bearings India Pvt. Ltd. (OP-1), Schaeffler Technologies AG & Co. KG (OP-2), Eastern Railway (OP-3), Durga Bearings Pvt. Ltd. (OP-4), V.M. Automation (OP-5) and Monika Bearing Traders (OP-6) (collectively referred to as 'Opposite Parties') alleging contravention of sections 3 and 4 of the Competition Act, 2002 ('the Act'). The informant was engaged in the business of manufacturing, marketing and supply of semi-finished engineering plastic products made through nylon monomer castings. The OP-1 was the wholly owned subsidiary of the OP-2 and stockist of all types of 'INA' brand bearings manufactured by the OP-2. The OP-2 was the original equipment manufacturer (OEM) of 'INA' brand bearings at its works in Germany. The OP-3 inter alia manufactured '140T Brake Down Cranes' for Indian Railways. The OP-4 and OP-5 were the authorised dealers of OP-1. The OP-6 was an authorised stockiest of the OP-5.

2. The informant submitted that it manufactured and supplied nylon pulley fitted with INA brand bearings to OP. 3 and the same was being used in 140T Gottawald Cranes manufactured by OP. 3 at its workshop at Jamalpur, District- Munger, Bihar. It was averred that the OP-3 issued a Notice Inviting Tender in April 2012 through Indian Railways e-procurement system for procurement of diverse quantities of pulleys with bearings (of INA make) and retainer rings. It was submitted that one of the condition for award of tender was that it would be placed only with latest approved vendor of CME or their authorised dealer/agent for either nylon pulleys or INA make bearing as on date of opening of tender. It was also submitted that as per tender condition, the proof of purchase was to be submitted from OEM or its authorised dealer/agent of bearings of INA brand. The informant was stated to have participated in the tender and was found to be L1 for supply of pulley with bearing and retainer rings for main hoist and main hoist guide as per Drg. No. 2.7707.1181-3 Alt-1 (item 1) and pulley with bearing and retainer rings for aux. Hoist guide as per Drg. No. 2.7707.1194-3 Alt-1 (item 3).

2.1 It was submitted that OP. 3 created an exception by approving two more manufacturers, apart from those approved by M/s. Gottwald for supply of nylon pulleys but such exception was not created in case of supply of bearings...

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