Delhi High Court Stays Recovery Of Over ₹223 Crores Penalty Imposed On MakeMyTrip By CCI, Subject To Depositing Of 10% Of Total Amount

The Delhi High Court has stayed the recovery of Rs. 223.48 crores of penalty imposed on MakeMyTrip by Competition Commission of India (CCI) for allegedly indulging in anti-competitive practices, subject to deposit of 10% of the total penalty amount, imposed by NCLAT as a condition while admitting its appeal.

MakeMyTrip had approached the NCLAT challenging the order passed by CCI. While the appeal was admitted by the appellate tribunal, it directed MakeMyTrip to deposit 10% of the penalty amount imposed by the CCI as a condition for the said admission.

Justice Prathiba M Singh said that a pre-deposit of 10% of the penalty amount could not have been made for mere admission of the appeal.

The counsel appearing for MakeMyTrip on instructions told the court that the company is willing to deposit 10% of the penalty amount as directed by NCLAT, without prejudice to its rights and contentions.

Accordingly, the court ordered: "Subject to the said deposit being made, the recovery of the remaining 90% of penalty imposed by the CCI, may be stayed."

It added: "In view of the submission finally made on behalf of the Petitioner, it is directed that subject to the deposit of 10% of the total penalty amount of Rs.223.48 crores, in accordance with the order of the CCI, as directed by the NCLAT, no recovery shall be effected in respect of the remaining 90% of the penalty amount. The said deposit shall be without prejudice to the rights and contentions of the parties."

The court noted that the impugned order passed by the NCLAT, while admitting the appeal, did not give any reasons for directing the deposit of 10% of the penalty amount.

Further, no interim protection has been explicitly granted in the said impugned order, in respect of the recovery of the remaining 90% of the penalty amount, the court said.

Justice Singh also said that MakeMyTrip will be free to approach the NCLAT for any other interim reliefs, while clarifying that none of the other contentions addressed in the matter have been considered or adjudicated by the court, including the maintainability of the plea.

On October 19, the CCI, while adjudicating the matter of Federation of Hotel & Restaurant Associations of India (FHRAI) & Anr. v MakeMyTrip India Pvt. Ltd. (MMT) & Ors., held that the commercial arrangement between MakeMyTrip, Go-Ibibo and OYO, which led to de-listing of FabHotels, Treebo and independent hotels, which were availing the services of these franchisors, was anticompetitive.

The commission had imposed a monetary penalty of Rs. 223.48 Crores on MakeMyTrip and Go-Ibibo and penalty of Rs. 168.88 Crores on OYO.

Title: MAKEMYTRIP INDIA PVT LTD MMT & ANR. v. COMPETITION COMMISSION OF INDIA & ORS.

Citation: 2022 LiveLaw (Del) 1179

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