Interim Relief to MakeMyTrip: Delhi HC stays CCI imposed Penalty of over 223 Crores subject to Deposit of 10% [Read Order]

The Delhi High Court has stayed the imposition of penalty by Competition Commission of India on MakeMyTrip subject to deposit of 10% of the total amount of over 223 Crore Rupees.

The National Company Law Appellate Tribunal (NCLAT) had admitted the appeal of MakeMyTrip in challenge of the penalty imposed, however, directed a deposit of 10% of the penalty amount, which was imposed by the CCI as a condition for admission of the appeal.

Aggrieved by the order passed by the NCLAT, the petitioners approached the Delhi High Court in the present Writ Petition. The main contention was that, the order passed by the NCLAT is completely ambiguous as to the reasons for which the direction for deposit of 10% of the penalty amount imposed by the CCI has been issued.

Also, no interim protection was allowed to the petitioners in the above order.

Upon a specific query by the Court as to whether the petitioner is willing to deposit the 10% of penalty amount, subject to which there shall be stay on the recovery of the remaining 90% of the penalty amount, Srinivasan, for the petitioner submitted that, under instructions from Adhiraj Singh, authorized signatory of the Petitioner, that insofar as the said interim protection is concerned, the matter may be relegated back to the NCLAT.

However, while the Court was dictating the order, the petitioner counsel further submitted under instructions that the Petitioner is willing to deposit 10% of the penalty amount, as directed by order dated 6th December, 2022.

In view of the submission of the petitioner, the Single Bench of Justice Prathiba M Singh stayed the recovery of the remaining 90% of the penalty amount subject to deposit of the 10% as above said.

In a parallel proceeding against the imposed penalty, on 22 November 2022, the NCLAT had issued notice to Make My Trip and GoIbibo in Appeal against Penalty imposed by CCI on OYO.

The appellant, Oravel Stays Limited (OYO) was directed to deposit 10% of the penalty amount within a period of six weeks in the appeal before NCLAT.

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