SC declines film traders' plea against CCI in Eros case

The Supreme Court has declined to admit a plea by the Central Circuit Cine Association, an apex body of film traders, challenging investigations against it by the fair trade regulator Competition Commission of India(CCI).

The association moved the court after it failed to get relief from the Competition Appellate Tribunal (CAT) on the point that they don't fall under the purview of the CCI Act.

However, a three judge bench headed by Chief Justice SH Kapadia has asked the association to raise their plea in CAT.

The association has alleged that CCI directed its probe unit Director General of Investigations on the allegations made by film distributors Eros, and passed orders on September 21, 2010 without giving them a proper hearing.

The dispute started during the release of Anjaana Anjaani,

starring Ranbir Kapoor and Priyanka Chopra.

The association had threatened to stop its release, alleging that Eros had not cleared dues of some of its members in Bihar, Jharkhand, Kerala and Madhya Pradesh for its previous film 'London Dreams'.

Eros then approached the CCI, which not only ensured that the film was released but also directed its probe unit to investigate the trading pattern of the association.

Senior advocate Rohinton Nariman, appearing for the association, submitted that it does fall under the CCI Act, as it was only a body of film traders and not a commercial entity.

He further submitted that as per the law, before asking DG Investigations for the probe, CCI should hear them and not act merely on the complaints of a film distributing firm.

However, it was opposed by senior advocate AN Haksar, representing Eros, who said that the association was abusing its dominance and passing directions to member associations.