Delhi High Court overturns CCI Investigation against JCB, emphasizes respect for mediation settlements

| Updated: 26 August, 2024 6:51 pm IST

NEW DELHI – In a significant ruling, the Delhi High Court has overturned an investigation initiated by the Competition Commission of India (CCI) against JCB, a UK-based company, and its Indian subsidiary. The CCI had accused JCB of misusing its dominant market position, but the court ruled that the CCI must respect the mediation process and settlements reached between parties.

The case stemmed from a dispute between JCB and Bull Machine, an Indian manufacturer of tractors and tractor attachments. JCB had sued Bull Machine for design infringement, copyright violation, and passing off. Following Bull Machine’s complaint that JCB’s infringement claim was frivolous, the CCI launched an inquiry into JCB’s alleged abuse of dominance.

However, the two companies settled their disputes through a Supreme Court-directed mediation process in 2021. Despite this settlement, the CCI continued its investigation, prompting JCB to challenge the CCI’s jurisdiction in the Delhi High Court.

ALSO READ: Sibal under attack: SC bar members express shock at resolution, defense for Mamata – THE NEW INDIAN

The court ruled that the CCI must respect the mediation process and the settlements reached between parties. It emphasized that allowing the CCI to continue its investigation after a settlement could jeopardize the agreement and discourage parties from opting for mediation. The court also upheld the rights of Intellectual Property Rights (IPR) holders to protect their intellectual property and cautioned the CCI against intervening in IP disputes that fall within the jurisdiction of a High Court or commercial court.

The ruling underscores the importance of respecting mediation processes and settlements, highlighting the need for regulatory authorities like the CCI to honour the rights of IPR holders and avoid interfering in disputes that are within the purview of other courts.

ALSO READ: Karkardooma Court grants bail to Jamia student Meeran Haider in 2020 Delhi riots case – THE NEW INDIAN

In this case, JCB was represented by Chandhiok & Mahajan and DSK Legal, while Bull Machine was represented by Advocate Anurag Ahluwalia and others. The CCI was represented by Advocates Samar Bansal and Vedant Kapur.

This decision is significant as it reinforces the integrity of mediation settlements and the jurisdictional boundaries of regulatory authorities, ensuring that parties can rely on mediation as a viable dispute resolution mechanism.