In Brief
SCM Solifert acquired 24.46% of Mangalore Chemicals and Fertilisers Limited shares in a single transaction without prior notification to the Competition Commission, in alleged violation of section 6(2) of the Competition Act. A second acquisition followed without proper ex-ante notification. The Supreme Court held that section 6(2) mandates notification before (not after) entering into a combination. The acquisition of over 10% shares constitutes a combination requiring prior notification. Placing shares in escrow does not prevent consummation. Mens rea is not required for civil penalty under section 43A; penalty is mandatory upon proof of breach. The Court dismissed the appeal and upheld the Rs. 2 crores penalty.
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