Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Companies Law Companies Law + SC Companies Law - 2001 (1) TMI SC This

  • Login
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2001 (1) TMI 868 - SC - Companies Law


Issues:
Cease and desist order challenge against the appellant by the Monopolies and Restrictive Trade Practices Commission.

Analysis:
1. Background and Allegations:
The appeal challenges a cease and desist order issued by the Monopolies and Restrictive Trade Practices Commission against the appellant based on complaints from former stockists. The complaints arose due to the termination of agreements by the appellant with the stockists, leading to a preliminary inquiry and the issuance of a notice to the appellant under relevant sections of the Monopolies and Restrictive Trade Practices Act, 1969.

2. Legal Proceedings and Allegations:
The appellant requested relevant material from the Commission, denying the allegations and charges against it, citing a denial of natural justice principles. Evidence was presented before the Commission on issues related to the maintainability of the inquiry, alleged trade practices, and their impact on competition and consumers.

3. Commission's Order and Appeal:
The Commission found the appellant guilty of restrictive trade practices and directed the discontinuation of such practices. The appellant appealed the decision, arguing against the justification of the order. The Commission's order was based on allegations of tie-up sales, refusal to deal, and their impact on competition and consumer costs.

4. Court's Analysis and Decision:
The Court analyzed the definition of restrictive trade practices under the MRTP Act, focusing on the effects on competition and consumer costs. It noted the lack of a clear finding on the impact of the appellant's actions on competition and consumer costs. The Court also highlighted the absence of specific mention of certain terminations in the notices provided to the appellant, emphasizing the importance of natural justice principles in such cases.

5. Conclusion:
The Court found the Commission's order to be contrary to law due to the lack of specific findings on competition impact and consumer costs, as well as the absence of notice regarding certain terminations. As a result, the Court allowed the appeal, setting aside the Commission's order and directing parties to bear their own costs.

 

 

 

 

Quick Updates:Latest Updates