GLOBAL TAX FREE TRADERS Vs. WILLIAM GRANT & SONS LTD

JUDGEMENT

(1.) THE informant was engaged in the business of importing and distributing foreign liquor in the territory of India. For this purpose, the informant owned and operated a customs bonded warehouse at its registered office at New Delhi. The Opposite Parties (OPs.) belonged to the William Grant & Sons group of companies, a group engaged in the production, sale, marketing and distribution of spirits all around the world. It offered Scotch whisky, single malts, handcrafted single malts, gin, and other spirits. William Grant & Sons is stated to be headquartered in Dufftown, United Kingdom with additional offices around the world. The informant submitted that from November, 2005 till March, 2013, the informant operated as exclusive distributor for the territory of India except the states of Maharashtra, Karnataka and Goa for OPs. products such as William Grants Family Reserve Scotch whisky, Glendfiddich Single Malt Scotch whisky and Balvenie Single Malt Scotch whisky. During contractual relationship between the informant and OPs, OPs. had complete discretion to quote the prices for their products to be imported by the informant, and the informant had no option but to accept those prices. This contract between informant and OPs. was mutually extended from year to year with minor variations in the terms of engagement. The Informant stated that vide letter dated 08.08.2011, it was appointed as Exclusive Importer and Distributor in India until 31.03.2013 for some specified brands. On 06.08.2012, the Informant, keeping in mind the investments made over the years, wrote an email to OPs. requesting them to renew the distribution contract between them ending on 31.03.2013 for a period of 5 years. In response to the same, the OPs. assured the Informant through an email dated 06.08.2012 that the relationship would be refreshed for a longer term once the existing contract expires. However, on 25.01.2013, OP 3 wrote a letter to the Informant stating that they were reviewing their business model in India and that the OPs. would let the Agreement expire on 31.03.2013 after which the Agreement will cease to be effective and binding on either of them.

(2.) CONSEQUENTLY , the contract between the informant and opposite parties came to an end in March, 2013. After termination of its relationship with the OPs. in March, 2013, the informant received detailed information from ICD Tughlaqabad, New Delhi, regarding the price charged by the OPs. for its goods from William Grant Sons India Ltd. (the OP group's Indian subsidiary) in the month of May, 2013. The informant was primarily aggrieved as the prices charged by the opposite parties from its Indian subsidiary were significantly lower than those charged from the informant during November, 2005 till March 2013.

(3.) THE informant claimed that these facts conclusively established abuse of its dominant position by the opposite parties as the OPs. imposed unfair/discriminatory price in purchase or sale of goods within the meaning of Section 4(2)(a)(ii) of the Competition Act, 2002 ('the Act').