Quick Summary: The Madras High Court ruled against the fixed pricing of trailer services at Chennai Port, supporting the Competition Commission of India's (CCI) decision to promote free market practices.
The National Association of Container Freight Stations (NACFS) filed a complaint against the Line Referee and Revenue Divisional Officer (RDO) and others. They argued that trailer owners were setting prices together and limiting the number of trailers, which was not allowed.
The CCI had already decided that trailer owners were engaging in unfair practices by setting prices together and blocking competition. They said prices should be decided by individual agreements, not by groups.
"In a competitive market, prices should be determined by free interaction between demand and supply forces."
Despite the CCI's decision, the RDO issued an order on July 14, 2022, seemingly forcing NACFS to agree to a 25% price increase for trailers. NACFS claimed they never agreed to this.
Justice N. Sathish Kumar ruled that the RDO's order was not allowed. The court emphasized that the CCI's decision should be followed, allowing NACFS to negotiate trailer prices freely.
The ruling means trailer owners can't force fixed prices or limit the number of trailers. The court also dismissed the request by the All Sea Ports Trailer Owners Consortium, which wanted the RDO's order enforced.
The court's decision supports fair competition and prevents unfair practices at Chennai Port. It ensures that businesses can operate without being forced into unfair agreements.
