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TMI Blog2001 (1) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... omplaints by erstwhile stockists of the appellant were received by the Commission. These stockists used to sell detergents, soaps, chemicals, etc., manufactured by the appellant and their grievance had arisen by reason of their agreements having been terminated by the appellant. 2. A preliminary inquiry was conducted by the Director General of Investigation & Registration whereupon a Restrictive Trade Practices Inquiry Notice No. 48 of 1983, dated 28-12-1983 was issued to the appellant. This notice was issued by the Commission acting suo motu and in exercise of the powers conferred on it under section 10(a)( iv) and section 37 of the Monopolies and Restrictive Trade Practices Act, 1969, read with Regulation 58 of the Monopolies and Restric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting competition; (c )the said trade practices have or may have the effect of imposing unjustified costs or restrictions on the consumers; and (d)such trade practices are prejudicial to public interest." 3. The appellant was required to inform the Commission if it wished to be heard, failing which the Commission would proceed with the inquiry. The said notice does not indicate that any document or complaint or report was furnished to the appellant along with the said notice. According to the appellant, and there does not appear to be any serious dispute about it, it requested the Commission to supply to it the material or report on the basis of which the show-cause notice had been issued. Along with an affidavit dated 8-10-2000, the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... practices of (1) tying up sales of its slow-moving with fast-moving products and dictating its RSs to purchase such goods and in such combination as the respondent may decide, and (2) terminating the stockistship of its stockists resulting in refusal to deal with him, and having held that the presumption in regard to such restrictive trade practices being prejudicial to public interest has not been rebutted, we now proceed under section 37(1) and direct the respondent that the aforesaid restrictive trade practices shall be discontinued and shall not be repeated. It logically follows that the respondent shall restore the stockistship of Jain General Stores, Pulsudhar, the affected R.S. and resume dealings with him." In the appeal which had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or (ii)which tends to bring about manipulation of prices, or conditions of delivery or to affect the flow of supplies in the market relating to goods or services in such manner as to impose on the consumers unjustified costs or restrictions;" As the plain reading of the said definition itself discloses, and also as rightly understood by the Commission in issuing the notice, there are two parts to the definition - one is which relates to carrying on of such trade practice which has or may have the effect of preventing, distorting or restricting competition in any manner and secondly the carrying on of such trade practice which inter alia has the effect of imposing unjustified costs or restrictions on the consumers. 7. The charge which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant did inter alia relate to termination of other stockists' agreements including that of Hiralal Bajaj & Sons. It is with respect to them that in the reply filed by the appellant it gave reasons for the termination of the agreements and the Commission came to the conclusion that the termination of agreement with said Bajaj's was justified. It, however, found that the agreement of Jain General Store was wrongly terminated and in respect thereof it observed as follows : "58. In the context of the facts of the case of this RS we think that even if the respondent did carry its scheme of rationalisation of distribution system to reduce uneconomic outlets, there is preponderance of probability that he was covered by this scheme mainl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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