1996 (7) TMI 433 - Commission - Companies Law

Summary

Issues:
1. Maintainability of the compensation application under the MRTP Act, 1969.

Detailed Analysis:
The judgment concerns a compensation application filed by an individual against the Regional Director, National Savings Govt. of India, and the State Bank of India. The applicant alleged that a penalty was wrongly charged by the bank, seeking a refund and compensation. The issues framed included whether the respondents engaged in unfair trade practices, if the applicant suffered any loss due to such practices, and if the applicant is entitled to compensation. Additionally, a plea was made by the Regional Director regarding the maintainability of the compensation application under the MRTP Act, 1969. The Division Bench's observation highlighted the government's role as a service state, emphasizing the need for legal control over its activities to provide remedies to those affected by administration.

Further Analysis:
The respondent No. 1 contended that the provisions of the MRTP Act, 1969 were not applicable to them. However, citing a previous decision, the Commission held that government departments providing services fall within the purview of the Act concerning restrictive, unfair, and monopolistic trade practices. The judgment emphasized that while sovereign functions may be exempt, non-sovereign functions of government departments rendering services are subject to the provisions of the MRTP Act. Consequently, the objections raised by the respondents regarding the applicability of the Act were dismissed.

Conclusion:
The Commission concluded that the respondents, including the government department, were covered by the MRTP Act, 1969, and thus, the objections to the maintainability of the compensation application were not valid. The matter was scheduled for the evidence of the applicant, highlighting the importance of legal control over government activities to provide remedies for those affected by unfair trade practices.