Supreme Court Stays NCLAT Finding On Patents Act Prevailing Over Competition Act

The Supreme Court on Monday stayed key observations of the NCLAT, which had held that the Patents Act prevails over the Competition Act and that the Competition Commission of India lacks jurisdiction to inquire into alleged anti-competitive conduct involving patented products

A bench of the Supreme Court of India comprising Justice J.B. Pardiwala and Justice Vijay Bishnoi issued notice in an appeal filed by the Competition Commission of India against the NCLAT's order dated October 30, 2025.

While admitting the appeal, the court directed, “The observations made in paragraphs 8–10 of the impugned order shall remain stayed from its operation.”

The Bench also clarified that it will hear the parties “only on the issue of jurisdiction.”

The NCLAT had dismissed an appeal filed by Swapan Dey alleging anti-competitive conduct by Vifor International AG in relation to the manufacturing and sale of Ferric Carboxymaltose, a drug used to treat iron deficiency.

The allegations concerned Vifor's licensing arrangements with Indian pharmaceutical companies, including Emcure Pharmaceuticals Limited, which was granted a licence to manufacture Ferric Carboxymaltose injections.

Dey alleged that the licensing arrangements were restrictive and led to limited supply, in violation of the Competition Act.

In its order, the NCLAT held that because the dispute concerned a patented drug, the CCI did not have the power to examine the allegations.

Relying on a Division Bench judgment of the Delhi High Court in Telefonaktiebolaget LM Ericsson PUBL v. Competition Commission of India (2023), the Tribunal said that the Patents Act is a special statute that prevails over the Competition Act when it comes to the exercise of patent rights.

The NCLAT also held that questions relating to patent licensing and the alleged abuse of patent rights squarely fell within the domain of the Patent Controller as per the provisions of the Patents Act.

Against this backdrop, the competition watchdog has challenged these findings before the Supreme Court of India.

The matter will now be heard on February 23, 2026.

For Appellants: ASG N Venkatraman, AOR Avinash Sharma, Advocates Akanksha Kapoor, Devendra Pandey, and Jayender S. Chandail

For Respondents: Senior Advocates Shyam Divan, Vaibhav Gaggar, Advocates Pravin Anand, Vaishali Mittal, Siddhant Chamola, Mushtaq Salim, AOR Lzafeer Ahmad B. F., Advocates Gitanjali Sharma, Sachin Narayan Dubey, Shubham Arun, Ankur Singhal, and Arpith Jacob.