The Competition Appellate Tribunal (COMPAT) has given recognition to the concept of ‘Relevant Turnover’ for calculation of penalty in cartel cases. Until now the Competition Commission of India (CCI) has been imposing penalty on the total turnover of the Company, even if the company was a multi-product company.

Senior Advocate Ramji Srinivasan along with Rahul Goel, Partner, and Anu Monga of Dhir & Dhir Associates led the arguments before the COMPAT and represented Excel Crop Care Ltd.

However, while deciding the appeal filed by Excel Crop Care Limited and other parties in Aluminium Phosphide cartel matter, the COMPAT modified the penalties imposed by CCI and have ordered 9% penalty on the ‘Relevant (product) Turnover’/ affected turnover instead of the turnover of the entire company/ group.

COMPAT considered the submissions of Excel Crop Care Limited relating to the practices as adopted in EU and other countries including South Africa (and placed reliance on some of the recent South African judgments). It is expected that going forward even CCI will take into account the turnover of relevant product while imposing penalties.