Relief for Flipkart as Supreme Court scraps NCLAT order seeking fresh CCI probe

The Supreme Court has given interim relief to Flipkart by quashing a National Company Law Appellate Tribunal (NCLAT) order that had directed a fresh competition probe into the e-commerce major for alleged abuse of dominant position.

The top court, however, has not closed the matter entirely. It has sent the case back to the NCLAT, asking it to hear the issue afresh and pass a reasoned order.

The case traces its roots to a complaint filed by the All India Online Vendors Association, which accused Flipkart of unfair trade practices and favouring a select group of sellers on its platform.

In 2018, the Competition Commission of India (CCI) had examined the complaint and ruled that no prima facie case was made out, effectively closing the matter without ordering a detailed investigation.

That decision was overturned in 2020, when the NCLAT set aside the CCI’s closure report and directed the watchdog to conduct a fresh probe into the allegations against Flipkart.

Flipkart had challenged the NCLAT’s direction before the Supreme Court, arguing that the appellate tribunal had overstepped its jurisdiction.

With the latest ruling, the Supreme Court has nullified the NCLAT’s earlier order for a CCI probe, while keeping the dispute alive by asking the tribunal to re-examine the case from scratch.

The outcome of the fresh NCLAT hearing will now determine whether Flipkart faces another round of scrutiny from the competition regulator.