The National Company Law Appellate Tribunal (NCLAT) upheld an order of the CCI which had refused to initiate investigation against Hitachi Systems Micro Private Limited (Hitachi) and IL&FS Technologies Limited (ILFS) (collectively, Respondents). The appeal was filed by Reprographic India (Reprographic), an ancillary entity to Bharat Heavy Electricals Limited (BHEL) which manufactures folding and finishing systems and distributes information technology products and services. It was averred that the Respondents had rigged a tender by BHEL for the supply, installation and maintenance of personal computers, and other computer peripherals. Reprographic alleged that Hitachi was awarded the contract at a very high price, and ILFS had enabled this by quoting an even higher price (supportive bid) during the tender. Reprographic further contended that there was no justification for Hitachi to quote products at a higher price. The CCI did not find merit in these allegations as there was no evidence of a meeting of minds, and the final price at which the contract was awarded fell within the internal estimates of BHEL.
During its assessment, the NCLAT confirmed the view of the CCI that low participation in a tender could have been the result of stringent tender conditions. Therefore, it was not indicative of concerted action. In view of the lack of evidence, it held that the appeal lacked merit and accordingly, dismissed the appeal.
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