High Court quashed the Competition Commission of India's proceedings due to lack of power : Order of High Court Upheld.
Supreme Court Upholds High Court Decision Quashing CCI's Proceedings Against Monsanto, Settlement Between Informant and Respondent Leads to Quashing of CCI's Proceedings; Legal Questions Kept Open for Future Cases
In a significant ruling, the Supreme Court of India has upheld the decision of the Delhi High Court to quash the proceedings initiated by the Competition Commission of India (CCI) against Monsanto Holdings Private Limited. This decision was predicated upon the lack of power observed by the High Court and the settlement reached between the informant and the respondent, rendering the proceedings unsustainable.
On September 2, 2025, a bench comprising Justices J.B. Pardiwala and Sandeep Mehta delivered the judgment in the case involving petitions for Special Leave to Appeal against the Delhi High Court's judgment dated July 13, 2023. The High Court had previously sustained its 2015 judgment, asserting that the CCI lacked the authority to pursue the proceedings once a settlement was reached between the involved parties. Consequently, the substratum of the case was lost, and the High Court rightly quashed the CCI's proceedings.
The Supreme Court, recognizing the peculiar facts and circumstances of the case, decided not to interfere with the High Court's judgment. The Court acknowledged that the original complainants and informants had no further comments or objections regarding the matter, reinforcing the decision to uphold the High Court's ruling.
Furthermore, the Supreme Court addressed potential questions of law arising from this litigation, stating that such questions remain open for determination in future, appropriate cases. This aspect of the judgment allows for the possibility of similar legal issues being explored in subsequent cases, ensuring that the legal questions are not prematurely settled without thorough examination in relevant contexts.
The decision marks a pivotal moment in competition law, especially concerning the powers and proceedings of the Competition Commission of India. Legal experts and stakeholders in the field of competition law will closely monitor future cases that may address the open questions of law left by this judgment.
The ruling also underscores the importance of settlements in legal proceedings, highlighting how a settlement can fundamentally alter the course and viability of legal actions.
Bottom Line:
The Supreme Court upheld the High Court's decision to quash the Competition Commission of India's proceedings due to lack of power, especially in light of a settlement reached between the informant and the respondent. The Court declined to interfere with the High Court's judgment, leaving questions of law open for determination in future cases.
Statutory provision(s): Competition Law
