The Confederation of Indian Alcoholic Beverage Companies (CIABC) has approached the Supreme Court challenging a 20 May 2026 judgment of the National Company Law Appellate Tribunal (NCLAT) in the Kerala Jawan Rum competition dispute. The appeal, filed on 24 July 2026, is yet to be listed for hearing before the apex court.
The NCLAT had upheld the Competition Commission of India (CCI) order dated 21 October 2021, which rejected allegations that the Kerala State Beverages (Manufacturing and Marketing) Corporation (KSBC) abused its dominant position by giving preferential treatment to the state-owned Jawan Rum brand manufactured by Travancore Sugar and Chemicals Ltd. The tribunal affirmed the CCI’s finding that no prima facie case of abuse of dominance under Section 26(2) of the Competition Act was made out.
A bench comprising Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha dismissed the appeal filed by CIABC and the Association of Distillers, Brewers and Vintners of India (ADBVI). The tribunal observed that the appellants had failed to demonstrate how the preference granted to Jawan Rum adversely affected competition in a market where numerous liquor brands were available. It also noted that there was no evidence to show that the alleged preference distorted consumer demand, altered consumer preference, or impaired consumer choice.
The industry bodies had originally approached the CCI in April 2021, alleging that KSBC, as Kerala’s exclusive wholesale liquor procurement agency, abused its dominant position by unilaterally fixing purchase prices, imposing unfair tender conditions, granting preferential treatment to government-owned liquor brands, delaying payments to suppliers, and levying discriminatory charges. A key part of the complaint related to the preferential treatment allegedly given to Jawan Rum in the state’s procurement process.
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However, the NCLAT held that the allegations were not supported by credible and concrete evidence. The tribunal noted that the appellants could not establish any significant losses suffered by liquor manufacturers, any market exits resulting from KSBC’s conduct, or any material that would justify a detailed investigation by the CCI. Regarding the Jawan Rum issue, the tribunal pointed out that the preference was expressly provided under the Kerala government’s tender policy and that no adverse effect on competition had been substantiated.
Upholding the CCI’s decision to close the proceedings, the NCLAT concluded that the complaints lacked sufficient evidence demonstrating harm to competition in the Kerala liquor market. The matter has now reached the Supreme Court, where the industry bodies are seeking a reconsideration of the findings related to KSBC’s procurement practices and the preferential treatment accorded to the state-owned Jawan Rum brand.
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