Court refuses relief to Vijay Mallya

Mumbai: The Bombay high court on Friday refused to grant interim relief in a petition filed by Kingfisher Airlines and its chairman Vijay Mallya against the Competition Commission of India (CCI).
The CCI had ordered a preliminary inquiry against the Kingfisher Airlines and Jet Airways’ alliance announced in October 2008.
Arguing for Kingfisher, senior counsel Navroz Seervai sought a stay on the inquiry initiated by CCI and told the court that the provisions of the Competition Act, 2002 that came into effect in May last year would not have retrospective effect on the deal between the two airlines.
In its petition, Kingfisher has stated that the alliance between the two airlines was to help them rationalise their rates and provide improved standards of service.
The CCI in August had asked for the inquiry against the alliance based on a preliminary report observing: “there exists a prima facie case and hence the matter should be referred to the director general, investigations and registrations”.
Justice JN Patel and justice BR Gavai observed that no final orders have been passed against Kingfisher in the inquiry before the CCI. Therefore, the judges held, there was no need to grant an interim stay on the inquiry and adjourned the case till February 11.
15/01/10 Mayura Janwalkar/Daily News & Analysis

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Categories: Jet Airways Jan 2010, Kingfisher Jan 2010