PREFACE TO THE THIRD EDITION V
PREFACE TO THE SECOND EDITION VII
TABLE OF CASES XVII
CHAPTER I : MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT
Aims and objects of the Act 4
Outline of the Act 6
Restrictive and Unfair Trade Practices 8
Power of Central Government to decide matters [S. 2-A] 8
Where the Act does not apply [S. 3] 9
Application of other laws not barred [S. 4] 11
CHAPTER II : MONOPOLIES AND RESTRICTIVE TRADE PRACTICES COMMISSION
Establishment and constitution [S. 5] 12
Jurisdiction of civil courts not ruled out 13
Terms and Conditions of Service [S. 6] 14
Removal from Office [S. 7] 14
Appointment of Director General and Staff [S. 8] 15
Salaries, etc., to be defrayed out of the Consolidated Fund [S. 9] 16
Investigation before issue of Process [S. 11] 16
JURISDICTION, POWERS AND PROCEDURE
Inquiry into Monopolistic or Restrictive Trade Practices [S. 10] 16
Preliminary Investigation 18
Inquiry Suo Motu 18
Defective Complaint 18
Application by Director General 19
Limit on Commission's power 21
Complaint without Sufficient Material 22
U.S. Rulings 23
U.K. Rulings 24
Application of Natural Justice 26
Government Approval [S. 33(3)] 27
Past Practice 28
Powers of the Commission [Section 12] 28
Power to issue temporary Injunctions [S. 12-A] 30
Ex parte Injunctions 32
Power to award Compensation [S. 12-B] 34
Enforcement of Orders [S. 12-C] 35
Orders may be conditional, particular and general [S. 13(1) and (3)] 36
Amendment or Revocation of Orders [S. 13(2)] 36
Alteration in constitution and amendment 36
Before expiry of time for appeal 37
Party seeking amendment 38
Relationship with Regulation 85 [now Regulation 78] 39
Facts needed for Revocation of Orders 40
Power to find out Defiance [S. 13-A] 40
Power to punish for contempt [S. 13-B] 40
Order can be as to Trade Practice in India only [S. 14] 41
Restriction of Application of Orders [S. 15] 41
Infringement of Patent [S. 15] 41
Rationale of the exemption 43
Conditions attached to licensed use of patent 44
Restrictions for purposes of export of goods 44
Sittings [S. 16] 44
Hearing [S. 17] 44
Procedure [S. 18] 45
Noting of orders in Register [S. 19] 45
Commission explains its nature and objectives of the Act 45
CHAPTER III : CONCENTRATION OF ECONOMIC POWER
Undertakings to which the Act applied [S. 20, since repealed] 47
Undertaking [S. 2(v)] 48
Interconnected Undertaking [S. 2(g)] 49
Same Management [S. 2(g)] 50
Group [S. 2(ef)] 52
Associated Persons 53
Dominant Undertaking [S. 2(d)] 54
Relevance of domination after amendment of 1991 56
Settlement of Disputes [S. 2-A] 57
Expansion of Undertakings [S. 21] (now repealed) 57
Effect of repeal 59
Establishment of new Undertakings [S. 22] (now repealed) 59
Section 22 and Freedom of Press 63
Scope of judicial review 64
Power of Exemption [S. 22-A] (now repealed) 64
Effect of repeal 65
Merger, Amalgamation and Take-over [S. 23] (now repealed) 65
Exemption from the Provision [S. 23(3)] (now repealed) 69
Reasons for refusal 72
Restraint upon Directors [S. 25] (now repealed) 73
Registration of Undertakings [S. 26] (now repealed) 73
Division of Undertakings [S. 27] 73
Severance of Undertakings [S. 27-A] 75
Manner of carrying out division or severance orders [S. 27-B] 76
Matters to be considered [S. 28] (now repealed) 77
Opportunity of being heard [S. 29] (now repealed) 77
Time within which action may be taken [S. 30] (now repealed) 77
CHAPTER IV : MONOPOLISTIC TRADE PRACTICES
What is Monopolistic Trade Practice [S. 2(i)] 79
Investigation by the Commission [S. 31] 80
Power of Government 81
When Monopolistic Trade Practice Prejudicial [S. 32] 84
Unfair Methods of Competition [S. 2(i), (vi)] 88
CHAPTER V : RESTRICTIVE AND UNFAIR TRADE PRACTICES
PART A : RESTRICTIVE TRADE PRACTICES
Definition [S. 2(o)] 91
Restrictions 92
Unjustified costs and burdens on consumers 93
Rule of Reason and that of Per Se Illegality 95
Per Se Illegality 97
Restrictions in a Lease 99
Obstruction to flow of capital or resources 100
Manipulation of price or conditions of delivery 101
Flow of supplies 101
Trade Practice 101
Services [S. 2(r)] 103
Registration of agreements relating to Restrictive Trade Practices
[S. 33] 105
Analysis of the definition 106
Effect of the Amendment of 1984 107
Government approval etc. [S. 33(3)] 109
Area Restrictions and Exclusive Dealings [S. 33(1)(a)] 110
Compulsory Purchase [cl. (b)] 113
Refusal to deal 115
Power to take back ''stock'' 117
Tying contracts and Exclusive Dealings [S. 33(i)(b)] 118
Service Charges [S. 33(1)(b)] 120
Discriminatory Incentive Bonuses [S. 33(1)(e)] 120
Resale Price Maintenance [S. 33(1)(f)] 121
Fixation of prices and terms and conditions of sale or purchase
[S. 33(1)(d)] 127
Threat of boycott for better margins 127
Price fixation as defensive measure 130
Price fixation for Services 131
Restriction on Competitive Products [cl. (h)] 135
Fidelity Rebates and Quantity discounts [S. 33(1)(e)] 137
Collaboration Agreements [S. 33(1)(g)] 139
Exclusion from trade association [S. 33(1)(i)] 141
Controlling Trade Outlets [S. 33(1)(ja)] 142
Concerted Activities by Competitors [S. 33(1)(j)] 143
Price Discrimination 145
Collusive tendering or bidding [clause (jb)] 148
Notified restrictive trade practices 151
Agreement to enforce restrictive trade practices [S. 33(1)(l)] 151
Registration of Agreements [S. 35] 151
Time for registration 153
Effect of registration 153
Application to Services 153
Exempted Agreements 153
Authorised by law 154
Government approval 155
Keeping the Register [S. 36] 156
PART B : UNFAIR TRADE PRACTICES
Definition of Unfair Trade Practice [S. 36-A] 156
False Representation 160
Form of representation [S. 36(1) Explanation] 163
Some examples 164
Standard or quality, a subjective judgment 165
Advertisement in also subjective-matter 165
Use of foreign brand name 166
False representation as to standards etc. [S. 36A(i)] 167
Standard etc. of services [S. 36-A(1)(ii)] 168
Old goods described as 'new' [S. 36-A(1)(iii)] 168
Sponsorship, approval, etc. [S. 36-A(1)(iv)] 169
False offer of Bargain Price 169
Schemes offering gifts, prizes, etc. 171
Non-compliance of prescribed standards 176
Hoarding, Destruction or Refusal 177
Inquiry by Commission [S. 36-B] 177
Powers of the Commission [S. 36-D] 178
Exclusive jurisdiction 178
Power to award compensation 179
Unfair Trading and English Law 179
The Trade Descriptions Act, 1968 and 1972 179
Control of Restrictive Trade Practices 180
Investigation by the Commission [S. 37] 180
Presumption as to Public Interest [S. 38] 181
Gateways of Trade 183
Protection of Public Interest against injury [S. 38(1)] 184
Denial to Public of Substantial Benefits 186
Obtaining Fair Terms from a Monopoly 188
Avoidance of Unemployment 189
Reduction in export earnings 189
Restriction to maintain restrictions not contrary in themselves
to public interest [S. 38(g)] 189
Restrictions not discouraging competition [S. 38(1)(h)] 190
Agreement allowed by Central Government 191
Requirements of defence and security 192
Essential Commodities 192
Avoidance of Re-sale Price Maintenance [S. 39] 192
CHAPTER VI : INVESTIGATION, PENALTIES AND MISCELLANEOUS PROVISIONS INFORMATION AND INSPECTORS
Power of Director General to obtain Information [S. 42] 195
Power to call for Information [S. 43] 196
Power to appoint Inspectors [S. 44] 196
Position of the Director General 196
OFFENCES AND PENALTIES
Contravention of Section 21 [S. 45] [now repealed] 197
Contravention of Section 27 [S. 46] 197
Contravention of Section 25 [S. 47] [now repealed] 197
Failure to Register Agreements [S. 48] 198
Punishment for failure to comply with orders under Section 7-B
[S. 48-A] 198
Failure to furnish Information [S. 49] 200
Failure to comply with orders [S. 50] 200
Resale Price Maintenance [S. 51] 201
Wrongful Disclosure of Information [S. 52] 201
Penalty for contravention of conditions etc. [S. 52-A] 201
Penalty for False Statement [S. 52-B] 201
Offences by Companies [S. 53] 202
Power to compound offences [S. 53-A] 203
MISCELLANEOUS
Power to impose conditions [S. 54] 203
Appeals [S. 55] 203
Jurisdiction and cognizance as to offences [Ss. 56 & 57] 206
Protection regarding statements to the Commission [S. 59] 206
Disclosure of information [S. 60] 206
Power to require reports [Ss. 61, 62 & 63] 206
Protection of action taken in good faith [S. 64] 207
Inspection of Register [S. 65] 207
Power to make regulations [S. 66] 207
APPENDICES
The Monopolies and Restrictive Trade Practices
(Amendment) Act, 1991 (Extract) 211
Notes on Clauses of The Amending Bill, 1991 217
Monopolies and Restrictive Trade Practices Commission
Regulations, 1991 219
SUBJECT INDEX 241