In a decisive move, the Delhi High Court has quashed an inquiry initiated by the Competition Commission of India (CCI) against UK-based JCB and its Indian subsidiary over alleged misuse of dominant market position. The investigation stemmed from a complaint filed by Bull Machine, an Indian tractor and attachment manufacturer, which was later withdrawn following a settlement through mediation.
A Division Bench, comprising Justices Prathiba M Singh and Amit Sharma, criticized the CCI for continuing its probe despite the resolution reached between the parties. The Court emphasized that regulatory bodies like the CCI must respect the outcomes of mediation and not undermine the process by pursuing investigations post-settlement.
Highlighting the importance of mediation, the Court noted that the continuation of inquiries after settlements could erode trust in the process and deter parties from resolving disputes amicably. It further stressed that settlements, once reached, should remain final unless exceptional circumstances arise, to avoid unnecessary legal battles and ensure closure for all involved.
In addition to addressing the CCI’s actions, the Court reaffirmed the rights of Intellectual Property Rights (IPR) holders, warning against regulatory overreach in matters that fall within the jurisdiction of High Courts or commercial courts.
The case arose after JCB sued Bull Machine for design infringement, copyright violation, and passing off, leading to a 2014 CCI inquiry into the abuse of dominance by JCB. However, following a Supreme Court-directed mediation in 2021, both companies settled their disputes, prompting the withdrawal of Bull Machine’s complaint.
The ruling serves as a reminder of the legal system’s commitment to upholding the integrity of mediation and ensuring that regulatory actions do not undermine mutually agreed resolutions.
