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Synopsis

The Delhi High Court on Wednesday stayed the recovery of Rs. 223.48 crore penalty imposed by the Competition Commission of India (CCI) on MakeMyTrip (MMT) for abuse of its dominant position in the hotel booking sector.

Justice Prathiba M. Singh granted interim relief to MMT and said, “A pre-deposit of 10% of the penalty amount could not have been made for mere admission of the appeal”.

MMT had approached the National Company Law Appellate Tribunal (NCLAT) challenging the CCI’s order. While admitting the appeal, it had directed MMT to deposit 10% of the total penalty amount imposed by the CCI as a condition for admission of appeal.

The single-judge bench noted that the NCLAT's impugned order, dated December 6, 2022, admitted the appeal but did not provide 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.

The court opined that the intention, which may not be explicitly stated in the entire order dated December 6, 2022, issued by the NCLAT is clearly against the recovery of the remaining 90% of the penalty amount.

Senior Advocates Mukul Rohatgi and Ranjit Srinivasan appearing for MakeMyTrip informed the court that the company is willing to deposit 10% of the fine amount as directed by the NCLAT vide order dated December 6, 2022, without prejudice to its rights and contentions.

The court held, “Subject to the said deposit being made, the recovery of the remaining 90% of the penalty imposed by the CCI, may be stayed”. 

“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”, Justice Singh added.

Furthermore, the court stated that MMT is free to approach the NCLAT for any other interim relief, and made it clear that none of the other contentions addressed either by the Petitioner or the Respondents have been considered or adjudicated, including the maintainability of the present writ petition.

Accordingly, the court disposed of the present petition.

Case Title: MakeMyTrip India Pvt Ltd MMT & Anr v. Competition Commission of India and Ors.