Trade Monopolies and Restrictive Trade Practices Act, 1969
Bare Act
Section 1
Short Title, Extent and Commencement.
(1) This Act may be called the
Monopolies and Restrictive Trade Practices Act, 1969.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by
notification, appoint 1a .
Section 2
Definitions In this
In this
Act, unless the context otherwise requires, -
a. "agreement"
includes any arrangement or understanding, whether or not it is intended that
such agreement shall be enforceable (apart from any provision of this Act) by
legal proceedings;
b. "Commission"
means the Monopolies and Restrictive Trade Practices Commission established
under section 5;
c. "Director
General" means the Director General of Investigation and Registration
appointed under section 8, and includes any Additional, Joint, Deputy or
Assistant Director General of Investigation and Registration appointed under
that section;
d. [
3 "dominant undertaking" means –
(iii) an
undertaking which, by itself or along with inter-connected undertakings
produces, supplies, distributes or otherwise controls not less than one-fourth
of the total goods that are produced, supplied or distributed in India or any
substantial part thereof; or
(iv) an
undertaking which provides or otherwise controls not less than one-fourth of
any services that are rendered in India or any substantial part thereof.
Explanation
II : Where
any goods are the subject of different forms of production, supply,
distribution or control, every reference in this Act to such goods shall be
construed as reference to any of those forms of production, supply,
distribution or control, whether taken separately or together or in such groups
as may be prescribed.
Explanation
III : The
question as to whether any undertaking, either by itself or along with
inter-connected undertakings, produces, supplies, distributes or controls
one-fourth of any goods or provides or controls one-fourth of any services may
be determined according to any of the following criteria, namely, value, cost,
price, quantity or capacity of the goods or services.
Explanation
IV : In
determining, with reference to the features specified in sub-clause (iii)
sub_clause(iv), as the case may be, the question as to whether an undertaking
is or is not a dominant undertaking, regard shall be had to –
(i) the
average annual production of the goods, or the average annual value of the
services provided, by the undertaking during the relevant period; and
(ii) the
figures published by such authority as the Central Government may, by
notification, specify, with regard to the total production of such goods made,
or the total value of such services provided, in India or any substantial part
thereof during the relevant period.
Explanation
V : In
determining the question as to whether an undertaking is or is not a dominant
undertaking in relation to any goods supplied, distributed or controlled in
India, regard shall be had to the average annual quantity of such goods
supplied, distributed or controlled in India by the undertaking during the
relevant period.
Explanation
VI : For
the purposes of this clause, "relevant period" means the period of
three calendar years immediately preceding that calendar year which immediately
precedes the calendar year in which the question arises as to whether an
undertaking is or is not a dominant undertaking.
Explanation
VII : Where
goods produced in India by an undertaking have been exported to a country
outside India, then the goods so exported shall not be taken into account in
computing for the purposes of this clause –
(i) the
total goods that are produced in India by that undertaking; or
(ii) the
total goods that are produced, supplied or distributed in India or any
substantial part thereof;
(da)
"financial institution" means, -
(i) a
public financial institution specified in or under section 4A of the Companies
Act, 1956 (1 of 1956);
(ii) a
State Financial, Industrial or Investment Corporation;
(iii) the
State Bank of India or a subsidiary bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959 (38 of 1959);
(iv) a
nationalised bank, that is to say, a corresponding new bank as defined in
clause (d) of section 2 of –
(i) the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of
1970); or
(ii) the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of
1980);
(v) the
General Insurance Corporation of India established in pursuance of the
provisions of section 9 of the General Insurance Business (Nationalisation)
Act, 1972 (57 of 1972);
(vi) the
Industrial Reconstruction Corporation of India; or
(vii) any
other institution which the Central Government may, by notification, specify in
this behalf;
(e)
"goods" means goods as defined in the Sale of Goods Act, 1930 (3 of
1930), and includes, -
(i)
products manufactured, processed or mined in India;
(ii)
shares and stocks including issue of shares before allotment;
(iii) in
relation to goods supplied, distributed or controlled in India, goods imported
into India;
(ee)
Omitted by the MRTP (Amdt.) Act, 1991, w.e.f. 27-9-1991;
(ef)
"group" means a group of –
(i) two or
more individuals, association of individuals, firms, trusts, trustees or bodies
corporate (excluding financial institutions), or any combination thereof, which
exercises, or is established to be in a position to exercise, control, directly
or indirectly, over any body corporate, firm or trust; or
(ii)
associated persons.
Explanation
: For
the purposes of this clause –
(I) a
group of persons who are able, directly or indirectly, to control the policy of
a body corporate, firm or trust, without having a controlling interest in that
body corporate, firm or trust, shall also be deemed to be in a position to
exercise control over it;
(II)
"associated persons" –
(a) in
relation to a director of a body corporate, means -
(i) a
relative of such director, and includes a firm in which such director or his
relative is a partner;
(ii) any
trust of which any such director or his relative is a trustee;
(iii) any
company of which such director, whether independently or together with his
relatives, constitutes one-fourth of its board of directors;
(iv) any
other body corporate, at any general meeting of which not less than one-fourth
of the total number of directors of such other body corporate are appointed or
controlled by the director of the first mentioned body corporate or his
relative, whether acting singly or jointly;
(b) in
relation to the partner of a firm, means a relative of such partner and
includes any other partner of such firm; and
(c) in
relation to the trustee of a trust, means any other trustee of such trust;
(III)
where any person is an associated person in relation to another, the latter
shall also be deemed to be an associated person in relation to the former;
(f)
"India" means, for the purposes of this Act, the territories to which
this Act extends;
(ff) & (fff)
(g)
"inter-connected undertakings" means two or more undertakings which
are inter-connected with each other in any of the following manner, namely :-
(i) if one
owns or controls the other.
(ii) where
the undertakings are owned by firms, if such firms have one or more common
partners.
(iii)
where the undertakings are owned by bodies corporate, -
(a) if one
body corporate manages the other body corporate, or
(b) if one
body corporate is a subsidiary of the other body corporate, or
(c) if the
bodies corporate are under the same management, or
(d) if one
body corporate exercises control over the other body corporate in any other
manner;
(iv) where
one undertaking is owned by a body corporate and the other is owned by a firm,
if one or more partners of the firm, -
(a) hold,
directly or indirectly, not less than fifty per cent of the shares, whether
preference or equity, of the body corporate, or
(b)
exercise control, directly or indirectly, whether as director or otherwise,
over the body corporate,
(v) if one
is owned by a body corporate and the other is owned by a firm having bodies
corporate as its partners, if such bodies corporate are under the same
management,
(vi) if
the undertakings are owned or controlled by the same person or by the same
group,
(vii) if
one is connected with the other either directly or through any number of
undertakings which are inter-connected undertakings within the meaning of one
or more of the foregoing sub-clauses.
Explanation
1 : For
the purposes of this Act, two bodies corporate, shall be deemed to be under the
same management, -
(i) if one
such body corporate exercises control over the other or both are under the
control of the same group or any of the constituents of the same group; or
(ii) if
the managing director or manager of one such body corporate is the managing
director or manager of the other; or
(iii) if
one such body corporate holds not less than one-fourth of the equity shares in
the other or controls the composition of not less than one-fourth of the total
membership of the board of directors of the other; or
(iv) if
one or more directors of one such body corporate constitute, or at any time
within a period of six months immediately preceding the day when the question
arises as to whether such bodies corporate are under the same management,
constituted (whether independently or together with relatives of such directors
or the employees of the first mentioned body corporate) one-fourth of the
director of the other; or
(v) if the same individual or individuals belonging to a group, while holding
(whether by themselves or together with their relatives) not less than
one-fourth of the equity shares in one such body corporate also hold (whether by
themselves or together with their relatives) not less than one-fourth of the
equity shares in the other; or
(vi) if
the same body corporate or bodies corporate belonging to a group, holding,
whether independently or along with its or their subsidiary or subsidiaries,
not less than one-fourth of the equity shares in one body corporate, also hold
not less than one-fourth of the equity shares in the other; or
(vii) if
not less than one-fourth of the total voting power in relation to each of the
two bodies corporate is exercised or controlled by the same individual (whether
independently or together with his relatives) or the same body corporate
(whether independently or together with its subsidiaries); or
(viii) if
not less than one-fourth of the total voting power in relation to each of the
two bodies corporate is exercised or controlled by the same individuals
belonging to a group or by the same bodies corporate belonging to a group, or
jointly by such individual or individuals and one or more of such bodies
corporate; or
(ix) if
the directors of the one such body corporate are accustomed to act in
accordance with the directions or instructions of one or more of the directors
of the other, or if the directors of both the bodies corporate are accustomed
to act in accordance with the directions or instructions of an individual,
whether belonging to a group or not.
Explanation
II : If
a group exercises control over a body corporate, that body corporate and every
other body corporate, which is a constituent of or controlled by, the group
shall be deemed to be under the same management.
Explanation
III : If
two or more bodies corporate under the same management hold, in the aggregate,
not less than one-fourth equity share capital in any other body corporate, such
other body corporate shall be deemed to be under the same management as the
first mentioned bodies corporate.
Explanation
IV : In
determining whether or not two or more bodies corporate are under the same
management, the shares held by financial institutions in such bodies corporate
shall not be taken into account.
Illustration
Undertaking
B is inter-connected with undertaking A and
Undertaking
C is inter-connected with undertaking B.
Undertaking
C is inter-connected with undertaking A; if
Undertaking
D is inter-connected with undertaking C,
Undertaking
D will be inter-connected with undertaking B and
Consequently
with undertaking A; and so on.
(h)
"member" means a member of the Commission :
(i)
"monopolistic trade practice" means a trade practice which has, or is
likely to have, effect of, -
(i)
maintaining the prices of goods or charges for the services at an unreasonable
level by limiting, reducing or otherwise controlling the production, supply or
distribution of goods or the supply of any services or in any other manner.
(ii)
unreasonably preventing or lessening competition in the production, supply or
distribution of any goods or in the supply of any services,
(iii)
limiting technical development or capital investment to the common detriment or
allowing the quality of any goods produced, supplied or distributed, or any
services rendered, in India to deteriorate;
(iv)
increasing unreasonably, -
(a) the
cost of production of any goods; or
(b)
charges for the provision, or maintenance, of any services;
(v)
increasing unreasonably, -
(a) the
prices at which goods are, or may be, sold or re-sold, or the charges at which
the services are, or may be, provided; or
(b) the
profits which are, or may be, derived by the production, supply or distribution
(including the sale or purchase) of any goods or by the provision of any
services;
(vi)
preventing or lessening competition in the production, supply or distribution
of any goods or in the provision or maintenance of any services by the adoption
of unfair methods or unfair or deceptive practices;
(j)
"notification" means a notification published in the Official
Gazette;
(ja)
"owner", in relation to an undertaking, means an individual, Hindu
undivided family, body corporate or other association of individuals, whether
incorporated or not, or trust (whether public or private or whether religious
or charitable) who or which owns or controls, the whole or substantially the
whole of such undertaking, and includes any associated person who is a
constituent of a group and who has the ultimate control over the affairs of
such undertaking;
(k)
"prescribed" means prescribed by rules made under this Act;
(l)
"price", in relation to the sale of any goods or to the performance
of any services, includes every valuable consideration, whether direct or
indirect, and includes any consideration which in effect relates to the sale of
any goods or to the performance of any services although ostensibly relating to
any other matter or thing;
(ll)
"produce" includes manufacture and all its grammatical variations and
cognate expressions shall be construed accordingly;
(m)
"register" means the register kept by the Director General under
section 36;
(n)
"registered consumers' association" means a voluntary association of
persons registered under the Companies Act, 1956 (1 of 1956), or any other law
for the time being in force which is formed for the purpose of protecting the
interests of consumers generally and is recognised by the Central Government as
such association on an application made in this behalf in such form and such
manner as may be prescribed;
(o)
"restrictive trade practice" means a trade practice which has, or may
have, the effect of preventing, distorting or restricting competition in any
manner and in particular, -
(i) which
tends to obstruct the flow of capital or resources into the stream of
production, 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;
(p)
"retailer", in relation to the sale of any goods, includes every
person, other than a wholesaler, who sells the goods to any other person; and
in respect of the sale of goods by a wholesaler, to any person for any purpose
other than re-sale, includes that wholesaler;
(r)
"service" means service which is made available to potential users
and includes the provision of facilities in connection with banking, financing,
insurance, chit fund, real estate, transport, processing, supply of electrical
or other energy, boarding or lodging or both, entertainment, amusement or the
purveying of news or other information, but does not include the rendering of
any service free of charge or under a contract of personal service.
Explanation
: For
the removal of doubts, it is hereby declared that any dealings in real estate
shall be included and shall be deemed always to have been included within the
definition of "service";
(s)
"trade" means any trade, business, industry, profession or occupation
relating to the production, supply, distribution or control of goods and
includes the provision of any services;
(t)
"trade association" means a body of persons (whether incorporated or
not) which is formed for the purpose of furthering the trade interests of its
members or of persons represented by its members;
(u)
"trade practice" means any practice relating to the carrying on of
any trade, and includes –
(i)
anything done by any person which controls or affects the price charged by, or
the method of trading of, any trader or any class of traders,
(ii) a
single or isolated action of any person in relation to any trade;
(v)
"undertaking" means an enterprise which is, or has been, or is
proposed to be, engaged in the production, storage, supply, distribution,
acquisition or control of articles or goods, or the provision of services, of
any kind, either directly or through one or more of its units or divisions,
whether such unit or division is located at the same place where the
undertaking is located or at a different place or at different places.
Explanation I : In this clause, -
(a)
"article" includes a new article and "service" includes a
new service;
(b)
"unit" of "division", in relation to an undertaking
includes, -
(i) a
plant or factory established for the production, storage, supply, distribution,
acquisition or control of any article or goods;
(ii) any
branch or office established for the provision of any service.
Explanation
II : For
the purposes of this clause, a body corporate, which is, or has been, engaged
only in the business of acquiring holding, underwriting or dealing with shares,
debentures or other securities of any other body corporate shall be deemed to
be an undertaking
Explanation
III : For
the removal of doubts, it is hereby declared that an investment company shall
be deemed, for the purposes of this Act, to be an undertaking; 47]
(x)
"wholesaler", in relation to the sale of any goods, means a person
who sells the goods, either in bulk or in large quantities, to any person for
the purposes of re-sale, whether in bulk or in the same or smaller quantities;
(y) words
and expressions used but not defined in this Act and defined in the Companies
Act, 1956 (1 of 1956), have the meanings respectively assigned to them in that
Act.
Section 3
Act not to apply in Certain Cases
to apply in Certain Cases.
Unless the
Central Government, by notification otherwise directs, this Act shall not apply
to –
a. any
undertaking owned or controlled by a Government company,
b. any
undertaking owned or controlled by the Government,
c. any
undertaking owned or controlled by a corporation (not being a company)
established by or under any Central, Provincial or State Act,
d. any
trade union or other association of workmen or employees formed for their own
reasonable protection as such workmen or employees,
e. any
undertaking engaged in an industry, the management of which has been taken over
by any person or body of persons in pursuance of any authorisation made by the
Central Government under any law for the time being in force,
f. any
undertaking owned by a co-operative society formed and registered under any
Central, Provincial or State Act relating to co-operative societies,
g. any
financial institution.
Explanation
: In
determining, for the purposes of clause (c), whether or not any undertaking is
owned or controlled by a corporation, the shares held by financial institutions
shall not be taken into account.
Section 4
Application of other Laws not Barred
1. Save
as otherwise provided in sub-section (2) or elsewhere in this Act, the
provisions of this Act shall be in addition to, and not in derogation of, any
other law for the time being in force.
2. Notwithstanding
anything contained in section 3 or elsewhere in this Act, so much of the
provisions of this Act, as relate to matters in respect of which specific provisions
exist in the –
i. Reserve
Bank of India Act, 1934 (2 of 1934), or the Banking Regulation Act, 1949 (10 of
1949), or
ii. State
Bank of India Act, 1955 (23 of 1955), or the State Bank of India (Subsidiary
Banks) Act, 1959 (38 of 1959), or
iii. Insurance
Act, 1938 (4 of 1938), shall not apply to a banking company, the State Bank of India
or a subsidiary bank, as defined in the State Bank of India (Subsidiary Banks)
Act, 1959 (38 of 1959), or an insurer, as the case may be.
Section 5
Establishment
and Constitution of the Commission.
1. For
the purposes of this Act, the Central Government shall establish, by
notification, a Commission to be known as the Monopolies and Restrictive Trade
Practices Commission which shall consist of a Chairman and not less than two
and not more than eight other members, to be appointed by the Central
Government.
2. The
Chairman of the Commission shall be a person who is, or has been or is
qualified to be, a Judge of the Supreme Court or of a High Court and the
members thereof shall be persons of ability, integrity and standing who have
adequate knowledge or experience of, or have shown capacity in dealing with,
problems, relating to economics, law, commerce, accountancy, industry, public affairs
or administration.
3. Before
appointing any person as a member of the Commission, the Central Government
shall satisfy itself that the person does not, and will not, have, any such
financial or other interest as is likely to affect prejudicially his functions
as such member
Section 6
Terms of Office, Conditions of Service, Etc
Office, Conditions of Service, Etc., of Members.
1. Every
member shall hold office for such period; not exceeding five years, as may be
specified by the Central Government in the notification made under sub-section
(1) of section 5, but shall be eligible for reappointment
Provided that no
member shall hold office as such for a total period exceeding ten years, or
after he has attained the age of sixty-five years, whichever is earlier.
1.
2. Notwithstanding
anything contained in sub-section (1), a member may –
a. by writing
under his hand and addressed to the Central Government resign his office at any
time;
b. be removed
from his office in accordance with the provisions of section 7.
1.
2.
3. A
casual vacancy caused by the resignation or removal of the Chairman or any
other member of the Commission under sub-section (2) or otherwise shall be
filled by fresh appointment.
3.A. Where
any such casual vacancy occurs in the office of the Chairman of the Commission,
the senior most member of the Commission, holding office for the time being,
shall discharge the functions of the Chairman until a person appointed to fill
such vacancy assumes the office of the Chairman of the Commission.
3.B. When
the Chairman of the Commission is unable to discharge the functions owing to
absence, illness or any other cause, the senior most member of the Commission,
if authorised so to do by the Chairman in writing, shall discharge the
functions of the Chairman until the day on which the Chairman resumes the
charge of his functions.
1.
2.
3.
4. No
act or proceeding of the Commission shall be invalid by reason only of the
existence of any vacancy among its members or any defect in the constitution
thereof.
5. The
chairman of the Commission and other members shall receive such remuneration
and other allowances and shall be governed by such conditions of service as may
be prescribed :
Provided that the
remuneration of the Chairman or any other member shall not be varied to his
disadvantage after his appointment.
1.
2.
3.
4.
5.
6. In
the case of a difference of opinion among the members of the Commission, the
opinion of the majority shall prevail and the opinion or orders of the
Commission shall be expressed in terms of the views of the majority.
7. The
Chairman of the Commission and every other member shall, before entering upon
his office, make and subscribe to an oath of office and of secrecy in such
form, in such manner and before such authority as may be prescribed.
8. The
Chairman or any member ceasing to hold office as such shall not hold any
appointment in, or be connected with the management or administration of, any
industry or undertaking to which this Act applies for a period of five years
from the date on which he ceases to hold such office.
Section 7
Removal of Members from Office in Certain Circumstances
of Members from Office in Certain Circumstances.
1. The
Central Government may remove from office any member, who -
a. has been
adjudged an insolvent, or
b. has been
convicted of an offence which, in the opinion of the Central Government,
involves moral turpitude, or
c. has become
physically or mentally incapable of acting as such member, or
d. has
acquired such financial or other interest as is likely to affect prejudicially his
functions as a member, or
e. has so
abused his position as to render his continuance in office prejudicial to the
public interest.
1.
2. Notwithstanding
anything contained in sub-section (1), no member shall be removed from his
office on the ground specified in clause (d) or clause (e) of that sub-section
unless the Supreme Court, on a reference being made to it in this behalf by the
Central Government, has on an inquiry held by it in accordance with such
procedure as it may specify in this behalf, reported that the member ought, on
such grounds, to be removed.
Section 8
Appointment of Director General, Etc
of Director General, Etc., and Staff of the Commission.
1. The
Central Government may, by notification, appoint a Director General of
Investigation and Registration, and as many Additional, Joint, Deputy or
Assistant Directors General of Investigation and Registration, as it may think
fit, for making investigation for the purposes of this Act and for maintaining
a Register of agreements subject to registration under this Act and for
performing such other functions as are, or may be, provided by, or under, this
Act.
2. The
Director General may, by written order, authorise one of the Additional, Joint,
Deputy or Assistant Directors General to function as the Registrar of agreements
subject to registration under this Act.
3. Every
person authorised to function as the Registrar of agreements and every
Additional, Joint, Deputy or Assistant Director General shall exercise his
powers, and discharge his functions, subject to the general control,
supervision and direction of the Director General.
4. The
Central Government may provide the staff of the Commission and may, in
addition, make provisions for the conditions of service of the Director
General, Additional, Joint, Deputy or Assistant Director General and of the
members of the staff of the Commission.
5. The
conditions of service of the Director General or any Additional, Joint, Deputy
or Assistant Director General or of any member of the staff of the Commission
shall not be varied to his disadvantage after his appointment.
Section 9
Salaries, Etc
Etc., to be defrayed out of the Consolidated Fund of India.
The
salaries and allowances payable to the members and the administrative expenses,
including salaries, allowances and pensions, payable to or in respect of
officers and other employees of the Commission, shall be defrayed out of the
Consolidated Fund of India.
Section 10
Inquiry into Monopolistic or Restrictive Trade Practices by Commission The Commission may inquiry into
(a) any restrictive trade practice
(i) upon receiving a
complaint of facts which constitute such practice from any trade association or
from any consumer or a registered consumers' association, whether such consumer
is a member of that consumers' association or not, o
(ii) upon a reference made
to it by the Central Government or a State Government, o
(iii) upon an application
made to it by the Director General, o
(iv) upon its own
knowledge or information
(b) any monopolistic trade
practice, upon a reference made to it by the Central Government or upon an
application made to it by the Director General or upon its own knowledge or
information.
Section 11
Investigation by Director General before Issue of Process in Certain Cases.
(1) The Commission may, before issuing any process requiring the attendance of
the person against whom an inquiry (other than an inquiry upon an application by
the Director General) may be made under section 10, by an order, require the
Director General to make, or cause to be made, a preliminary investigation in
such manner as it may direct and submit a report to the Commission to enable it
to satisfy itself as to whether or not the matter requires to be inquired into.
(2) The Director
General may, upon his own knowledge or information or on a complaint made to
him, make, or cause to be made, a preliminary investigation in such manner as he
may think fit to enable him to satisfy himself as to whether or not an
application should be made by him to the Commission under section 10
(3) For the purpose of conducting
the preliminary investigation under sub-section (1), or sub-section (2), as the
case may be, the Director General or any other person making the investigation
shall have the same powers as may be exercised by an Inspector under
sub-section (2) of section 44.
(4) Any order or requisition made
by a person making an investigation under sub-section (1), or sub-section (2),
shall be enforced in the same manner as if it were an order or requisition made
by an Inspector appointed under section 240 or section 240A of the Companies
Act, 1956 (1 of 1956), and any contravention of such order or requisition shall
be punishable in the same manner as if it were an order or requisition made by
an Inspector appointed under the said section 240 or section 240A. 62.
Section 12
Powers of the Commission
of the Commission.
1. The
Commission shall, for the purposes of any inquiry under this Act, have the same
powers as are vested in a civil court under the Code of Civil Procedure, 1908
(5 of 1908), while trying a suit, in respect of the following matters, namely
:-
a. the
summoning and enforcing the attendance of any witness and examining him on
oath;
b. the
discovery and production of any document or other material object producible as
evidence;
c. the
reception of evidence on affidavits;
d. the
requisitioning of any public record from any court or office
e. the
issuing of any commission for the examination of witnesses;
f. the
appearance of parties and consequence of non-appearance.
1.
2. Any
proceeding before the Commission shall be deemed to be a judicial proceeding
within the meaning of sections 193 and 228 of the Indian Penal Code, 1860 (45
of 1890), and the Commission shall be deemed to be a civil court for the
purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure,
1973 (2 of 1974)
3. The
Commission shall have power to require any person –
a. to produce
before, and allow to be examined and kept by, an officer of the Commission
specified in this behalf, such books, accounts or other documents in the
custody or under the control of the person so required as may be specified or
described in the requisition, being documents relating to any trade practice,
the examination of which may be required for the purposes of this Act; and
b. to furnish
to an officer so specified such information as respects the trade practice as
may be required for the purposes of this Act or such other information as may
be in his possession in relation to the trade carried on by any other person.
1.
2.
3.
4. For
the purpose of enforcing the attendance of witnesses the local limits of the
Commission's jurisdiction shall be the limits of the territory of India.
5. Where,
during any inquiry under this Act, the Commission has any grounds to believe
that any books or papers of, or relating to any undertaking in relation to
which such inquiry is being made or which the owner of such undertaking may be
required to produce in such inquiry, are being, or may be, destroyed,
mutilated, altered, falsified or secreted, it may, by a written order,
authorise any officer of the Commission to exercise the same powers of entry,
search and seizure in relation to the undertaking, or the books or papers,
aforesaid as may be exercised by the Director General while holding a
preliminary investigation under section 11. 67.
Section 13
Orders of Commission May be subject to Conditions, Etc
of Commission May be subject to Conditions, Etc.
1. In
making any order under this Act, the Commission may make such provisions not
inconsistent with this Act, as it may think necessary or desirable for the
proper execution of the order and any person who commits a breach of or fails
to comply with any obligation imposed on him by any such provision shall be
deemed to be guilty of an offence under this Act.
2. Any
order made by the Commission may be amended or revoked at any time in the
manner in which it was made.
3. An
order made by the Commission may be general in its application or may be
limited to any particular class of traders or a particular class of trade
practice or a particular trade practice or a particular locality.
Section 14
Orders Where Party Concerned does not Carry on Business in India .
Where any practice substantially
falls within monopolistic, restrictive, or unfair, trade practice, relating to
the production, storage, supply, distribution or control of goods of any
description or the provision of any services and any party to such practice does
not carry on business in India, an order may be made under this Act with
respect to that part of the practice which is carried on in India.
Section 15
Restriction of Application of Orders in Certain Cases.
No order made under this Act with
respect to any monopolistic or restrictive trade practice shall operate so as
to restrict –
(a) the right of any person to
restrain any infringement of a patent granted in India, or
(b) any person as to the condition which he attached to a licence to do
anything, the doing of which but for the licence would be an infringement of a
patent granted in
India, or
(c) the right of any person to
export goods from India, to the extent to which the monopolistic or restrictive trade
practice relates exclusively to the production, supply, distribution or control
of goods for such export.
Section 16
Sittings of the Commission.
(1) The Central office of the
Commission shall be in Delhi but the Commission may sit at such places in India and at such times as
may be most convenient for the exercise of its powers or functions under this
Act.
(2) The powers or functions of the
Commission may be exercised or discharged by Benches formed by the Chairman of
the Commission from among the members.
Section 17
Hearing to be in Public Except in Special Circumstances.
(1) Subject to the provisions of
sub-section (2), the hearing of proceedings before the Commission shall be in
public.
(2) Where the Commission is
satisfied that it is desirable to do so by reason of the confidential nature of
any offence or matter or for any other reason, the Commission may –
(a) hear the
proceedings or any part thereof in private;
(b) give directions as
to the persons who may be present thereat;
(c) Prohibit or restrict the publication of evidence given before the Commission
(whether in public or in private) or of matters contained in documents filed
before the Commission.
Section 18
Procedure of the Commission
(1) Subject to the provisions of
this Act, the Commission shall have power to regulate
(a) the procedure and
conduct of its business;
(b) the procedure of
Benches of the Commission;
(c) the delegation to
one or more members of such powers or functions as the Commission may specify
and subject to any general or special direction given, or condition imposed, by
the Commission, a member, to whom any powers or functions are so delegated,
shall exercise such powers or discharge those functions in the same manner and
with the same effect as if they had been conferred on such member directly by
this Act and not by way of delegation and any order or other act or thing made
or done by such member in pursuance of the power or function so delegated shall
be deemed to be an order or other act or thing made or done, by the Commission.
(2) In particular, and without
prejudice to the generality of the foregoing provisions, the powers of the
Commission shall include the power to determine the extent to which persons
interested or claiming to be interested in the subject-matter of any proceeding
before it are allowed to be present or to be heard, either by themselves or by
their representatives or to cross-examine witnesses or otherwise to take part
in the proceeding.
Section 19
Orders of the Commission to be Noted in the Register
The Commission shall cause an
authenticated copy of every order made by it in respect of a restrictive trade
practice or an unfair trade practice, as the case may be, to be forwarded to
the Director General who shall have it recorded in such manner as may be
prescribed.
Section 20
Undertakings to which this Part Applies
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.
Section 21
Expansion of Undertakings.
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.
Section 22
Establishment of New Undertakings
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.
Section 23
Merger, Amalgamation and Take Over
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.
Section 24
Merger, Amalgamation and take over in Contravention of Section 23.
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991,
W.E.F. 27-9-1991.
Section 25
Directors of Undertakings not to be Appointed Directors of Other Undertakings.
OMITTED BY THE MRTP (AMENDMENT)
ACT, 1991, W.E.F. 27-9-1991.
Section 26
Registration of Undertakings to which Part A Applies
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.
Section 27
Division of Undertakings
(1) Notwithstanding anything
contained in this Act or in any other law for the time being in force, the
Commission may, -
(i) upon receiving a
complaint of facts from any trade association or from any consumer or a
registered consumers' association, whether such consumer is a member of that
consumers' association or not, or
(ii) upon a reference
made to it by the Central Government or a State Government, or
(iii) upon its own
knowledge or information.
If it is of opinion
that the working of an undertaking is prejudicial to the public interest, or
has led, or is leading, or is likely to lead, to the adoption of any
monopolistic or restrictive trade practices, inquire as to whether it is
expedient in the public interest to make an order, -
(a) for the division of
any trade of the undertaking by the sale of any part of the undertaking or
assets thereof, or
(b) for the division of
any undertaking or inter-connected undertakings into such number of
undertakings as the circumstances of the case may justify, and the Commission
may, after such hearing as it thinks fit, report to the Central Government its
opinion thereon and shall, where it is of opinion that a division ought to be
made, specify the manner of the division and compensation, if any, payable for
such division.
Explanation : For the purposes of this section all activities carried on
by way of trade by an undertakings or two or more inter-connected undertaking
may be treated as a single trade.
(2) If the Commission so
recommends, the Central Government may, notwithstanding anything contained in
any other law for the time being in force, by an order in writing, direct the
division of any trade of the undertaking or of the undertaking or
inter-connected undertakings.
(3) Notwithstanding anything
contained in any other law for the time being in force, the order referred to
in sub-section (2) may provide for all such matters as may be necessary to give
effect to the division of any trade of the undertaking, or of the undertaking
or inter-connected undertakings, including, -
(a) the transfer or
vesting of property, rights, liabilities or obligations;
(b) the adjustment of
contracts either by the discharge or reduction of any liability or obligation
or otherwise;
(c) the creation,
allotment, surrender or cancellation of any shares, stock or securities;
(d) the payment of compensation;
(e) the formation or
winding up of an undertaking or the amendment of the memorandum and articles of
association or any other instruments regulating the business of any
undertaking;
(f) the extent to which
and the circumstances in which provisions of the order affecting an undertaking
may be altered by the undertaking and the registration thereof;
(g) the continuation,
with such changes as may be necessary, of parties to any legal proceeding
(4) Where the Central Government
makes, or intends to make, an order for any purpose mentioned in sub-section
(3), it may, with a view to achieving that purpose, prohibit or restrict the
doing of anything that might impede the operation or making of the order and
may impose on any person such obligations as to the carrying on of any
activities or the safeguarding of any assets, as it may think fit, or it may,
by order, provide for the carrying on of any activities or safeguarding of any
assets either by the appointment of a person to conduct, or supervise the conduct
of, any such activities or in any other manner.
(5) Notwithstanding anything
contained in any other law for the time being in force or in any contract or in
any memorandum or articles of association, an officer of a
company who ceases to hold office as such in consequence of the division of an
undertaking or inter-connected undertakings shall not be entitled to claim any
compensation for such cesser.
Section 28
Matters to be considered by The Central Government before According Approval
OMITTED BY THE MRTP (AMENDMENT) ACT,
1991, W.E.F. 27-9-1991.
Section 29
Opportunity of being Heard
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.
Section 30
Time with in Which Action Should be Taken
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.
Section 31
Investigation by Commission of Monopolistic Trade Practices
(1) Where it appears to the
Central Government that the owners of one or more undertakings are indulging in
any practice which is, or, may be, a monopolistic trade practice, or that,
monopolistic trade practices prevail in respect of any goods or services, that
Government may refer the matter to the Commission for an inquiry and the
Commission shall, after such hearing as it thinks fit, report to the Central
Government its findings thereon :
Provided that where the
Commission receives any application from the Director General or any
information, or comes to know, that the owner of any undertaking is, or, the
owners of two or more undertakings are, indulging in any trade practice, which
is, or may be, a monopolistic trade practice, or that monopolistic trade
practices prevail in respect of any goods or services, it may on such
application or on its own motion, and notwithstanding that no reference has
been made to it by the Central Government under this sub-section, make an
inquiry into the matter.
(2) If as a result of such inquiry, the Commission makes a finding to the
effect that, having regard to the economic conditions prevailing in the country
and to all other
matters which appear in particular circumstances to be relevant, the trade
practice operates or is likely to operate against the public interest, it shall
make a
report to the Central Government as to its findings thereon and on receipt of
such report, the Central Government may, notwithstanding anything contained in
any other law for the time being in force, pass such orders as it may think fit
to remedy or prevent any mischiefs which result or may result from such trade
practice.
(2A) If any such report contains a finding of the Commission to the effect that
the owner of any undertaking is, or, the owners of two or more undertakings
are,
indulging in any monopolistic trade practice, or that monopolistic trade
practice prevails in respect of any goods or services, and the Central
Government is satisfied that it is necessary to take steps to remedy or prevent
any mischiefs which result or may result from such monopolistic trade practice,
and that such monopolistic trade practice does not fall within any of the
exceptions specified in section 32, it may, notwithstanding anything contained
elsewhere in this Act or in any other law for the time being in force, make
such orders as it may think fit, -
(a) prohibiting the
owner of the concerned undertaking or the owners of the concerned undertakings,
as the case may be, from continuing to indulge in such monopolistic trade
practice; or
(b) prohibiting the
owners of any class of undertaking or undertakings generally, from continuing
to indulge in any monopolistic trade practices in relation to such goods or
services, and may also make such other orders as it may think fit to remedy or
prevent any mischief which results, or may result, from the continuation of
monopolistic trade practices in relation to the goods and services aforesaid.
(3) Without prejudice to the
generality of the powers conferred by sub-section (2A), any order made by the
Central Government under this section may also include an order -
(a) regulating the
production, storage, supply, distribution or control of any goods by the
undertaking or the control of supply of any service by it and fixing the terms
of sale (including prices) or supply thereof;
(b) prohibiting the
undertaking from resorting to any act or practice or from pursuing any
commercial policy which prevents or lessens, or is likely to prevent or lessen,
competition in the production, storage, supply or distribution of any goods or
provision of any services;
(c) fixing standards
for the goods used or produced by the undertaking;
(d) declaring unlawful,
except to such extent and in such circumstances as may be provided by or under
the order, the making or carrying out of any such agreement as may be specified
or described in the order;
(e) requiring any party
to any such agreement as may be so specified or described to determine the
agreement within such time as may be so specified, either wholly or to such
extend as may be so specified;
(f) regulating the
profits which may be derived from the production, storage, supply, distribution
or control of goods or from the provision of any service;
(g) regulating the quality of any goods or the provision of any service so that
the standards thereof may not deteriorate.
(4) Whenever any order is made by
the Central Government under sub-section (2A) prohibiting the owner of any
undertaking or class of undertakings or undertakings generally from continuing
to indulge in any monopolistic trade practice, -
(a) the owner of any
undertaking or the owners of undertakings of any class, as the case may be,
shall, within thirty days form the date of receipt of such order (or within
such further time as the Central Government may, on sufficient cause being
shown, allow) communicate to the Central Government his or their compliance
with the order; and
(b) the Director
General shall within ninety days from the date of such order (or from the
expiry of the further time allowed by the Central Government) inform the
Central Government, whether the order made by it has been complied with, and
where the Director General has any reason to believe that any such order has
been, or in being, contravened by the owner of any undertaking, he shall inform
the Central Government about the particulars of the owner of such undertaking
to, enable that Government to take such action, under this Act, as it may think
fit.
Section 32
Monopolistic Trade Practice to be Deemed to be Prejudicial to the Public Interest Except in Certain Cases
For the purposes of this Act,
every monopolistic trade practice shall be deemed to be prejudicial to the
public interest, except where –
(a) such trade practice is expressly
authorised by any enactment for the time being in force, or
(b) the Central Government, being
satisfied that any such trade practice is necessary
(i) to meet the
requirements of the defence of India or any part thereof, or for the security of the State; or
(ii) to ensure the
maintenance of supply of goods and services essential to the community; or
(iii) to give effect to
the terms of any agreement to which the Central Government is a party, by a
written order, permits the owner of any undertaking to carry on any such trade
practice.
Section 33
Registrable Agreements Relating to Restrictive Trade Practices
(1) Every agreement falling within
one or more of the following categories shall be deemed, for the purpose of
this Act, to be an agreement relating to restrictive trade practices and shall
be subject to registration in accordance with the provisions of this Chapter,
namely :-
(a) any agreement which
restricts, or is likely to restrict, by any method the persons or classes of
persons to whom goods are sold or from whom goods are bought;
(b) any agreement
requiring a purchaser of goods, as a condition of such purchase, to purchaser
some other goods;
(c) any agreement
restricting in any manner the purchaser in the course of his trade from
acquiring or otherwise dealing in any goods other than those of the seller or
any other person;
(d) any agreement to
purchase or sell goods or to tender for the sale or purchase of goods only at
prices or on terms or conditions agreed upon between the sellers or purchasers;
(e) any agreement to
grant or allow concessions or benefits, including allowances, discounts,
rebates or credit in connection with, or by reason of, dealings;
(f) any agreement to sell goods on condition that the prices to be charged on
re-sale by the purchaser shall be the prices stipulated by the seller unless it
is clearly stated that prices lower than those prices may be charged;
(g) any agreement to
limit, restrict or withhold the output or supply of any goods or allocate any
area or market for the disposal of the goods;
(h) any agreement not to employ or restrict the employment of any method,
machinery or process in the manufacture of goods;
(i) any agreement for
the exclusion from any trade association of any person carrying on or intending
to carry on, in good faith the trade in relation to which the trade association
is formed;
(j) any agreement to
sell goods at such prices as would have the effect of eliminating competition
or a competitor;
(ja) any agreement
restricting in any manner, the class or number of wholesalers, producers or
suppliers from whom any goods may be bought;
(jb) any agreement as to the bids which any of the parties thereto may offer at
an auction for the sale of goods or any agreement whereby any party thereto
agrees to abstain from bidding at any auction for the sale of goods;
(k) any agreement not hereinbefore referred to in this section which the
Central Government may, by notification specify for the time being as being one
relating to a restrictive trade practice within the meaning of this sub-section
pursuant to any recommendation made by the Commission in this behalf;
(l) any agreement to enforce the carrying out of any such agreement as is
referred to in this sub-section.
(2) The provisions of this section
shall apply, so far as may be, in relation to agreements making provision for
services as they apply in relation to agreements connected with the production,
storage, supply, distribution or control of goods.
(3) No agreement falling within this section shall be subject to registration
in accordance with the provisions of this Chapter if it is expressly authorised
by or under any law for the time being in force or has the approval of the
Central Government or if the Government is a party to such agreement.
Section 34
Registrar of Restrictive Trade Agreements.
REPEALED BY THE MRTP (AMENDMENT) ACT, 1984, section 28 W.E.F. 1-8-1984.
Section 35
Registration of Agreements
(1) The Central Government shall,
by notification, specify a day hereinafter referred to as the appointed day on
and from which every agreement falling within section 33 shall become registrable
under this Act :
Provided that different days may
be appointed for different categories of agreements.
(2) Within sixty days from the appointed day, in the case of an agreement
existing on that day, and in the case of an agreement made after the appointed
day, within sixty days from the making thereof, there shall be furnished to the
Director General in respect of every agreement falling within section 33, the
following particulars, namely :-
(a) the names of the persons who
are parties to the agreement; and
(b) the whole of the terms of the
agreement.
(3) If at any time after the
agreement has been registered under this section, the agreement is varied (whether
in respect of the parties or in respect of the terms thereof) or determined
otherwise than by efflux of time, particulars of the variation or determination
shall be furnished to the Director General within one month after the date of
the variation or determination.
(4) The particulars to be
furnished under this section in respect of an agreement shall be furnished –
(a) in so far as the
agreement or any variation or determination of the agreement is made by an
instrument in writing, by the production of the original or a true copy of that
agreement; and
(b) in so far as the
agreement or any variation or determination of the agreement is not so made, by
the production of a memorandum in writing signed by the person by whom the
particulars are furnished.
(5) The particulars to be
furnished under this section shall be furnished by or on behalf of any person
who is a party to the agreement or, as the case may be, was a party thereto
immediately before its determination, and where the particulars are duly furnished
by or on behalf of any such person, the provisions of this section shall be
deemed to be complied with on the part of all such persons.
Explanation I : Where any agreement
subject to registration under this section relates to the production, storage,
supply, distribution or control of goods or the performance of any services in
India and any party to the agreement carries on business in India, the
agreement shall be deemed to be an agreement within the meaning of this
section, notwithstanding that any other party to the agreement does not carry
on business in India.
Explanation II : Where an agreement is
made by a trade association the agreement for the purposes of this section
shall be deemed to be made by all persons who are members of the association or
represented thereon as if each such person were a party to the agreement.
Explanation III : Where specific
recommendations, whether express or implied, are made by or on behalf of a
trade association to its members, or to any class of its members, as to the
action to be taken or not to be taken by them in relation to any matter
affecting the trade conditions of those members, this section shall apply in
relation to the agreement for the constitution of the association
notwithstanding any provision to the contrary therein as if it contained a term
by which each such member and any person represented on the association by any
such member agreed with the association to comply with those recommendations
and any subsequent recommendations affecting those recommendations.
Section 36
Keeping the Register
(1) For the purpose of this Act,
the Director General shall keep a register in the prescribed form and shall
enter therein the prescribed particulars as regards agreements subject to
registration.
(2) The Director General shall
provide for the maintenance of a special section of the register for the entry
or filing in that section of such particulars as the Commission may direct,
being –
(a) particulars
containing information, the publication of which would, in the opinion of the
Commission, be contrary to the public interest;
(b) particulars
containing information as to any matter being information the publication of
which, in the opinion of the Commission, would substantially damage the
legitimate business interest of any person.
(3) Any party to an agreement
required to be registered under section 35 may apply to the Director General –
(i) for the agreement
or any part of the agreement to be excluded form the provisions of this Chapter
relating to the registration on the ground that the agreement or part thereof
has no substantial economic significance; or
(ii) for inclusion of any provision of the agreement in the special section.
and the Director General shall dispose of the matter in conformity with any
general or special directions issued by the Commission in this behalf.
Section 37
Investigation into Restrictive Trade Practices by Commission
(1) The Commission may inquire
into any restrictive trade practice, whether the agreement, if any, relating
thereto has been registered under section 35 or not, which may come before it
for inquiry and, if, after such inquiry it is of opinion that the practice is
prejudicial to the public interest, the Commission may, by order, direct that-
(a) the practice shall
be discontinued or shall not be repeated;
(b) the agreement relating
thereto shall be void in respect of such restrictive trade practice or shall
stand modified in respect thereof in such manner as may be specified in the
order.
(2) The Commission may, instead of
making any order under this section, permit the party to any restrictive trade
practice, if he so applies, to take such steps within the time specified in
this behalf by the Commission as may be necessary to ensure that the trade
practice is no longer prejudicial to the public interest, and, in any such
case, if the Commission is satisfied that the necessary steps have been taken
within the time specified, it may decide not to make any order under this
section in respect of that trade practice.
(3) No order shall be made under
sub-section (1) in respect of –
(a) any agreement
between buyers relating to goods which are bought by the buyers for consumption
and not for ultimate resale whether in the same or different form, type or
specie or as constituent of some other goods;
(b) a trade practice which is expressly authorised by any law for the time
being in force.
(4) Notwithstanding anything
contained in this Act, if the Commission, during the course of an inquiry under
sub-section (1), finds that the owner of any undertaking is indulging in
monopolistic trade practices, it may, after passing such orders under
sub-section (1) or sub-section (2) with respect to the restrictive trade
practices as it may consider necessary, submit the case along with its findings
thereon to the Central Government for such action as that Government may take
under section 31.
Section 38
Presumption as to the Public Interest
(1) For the purposes of any
proceedings before the Commission under section 37, a restrictive trade
practice shall be deemed to be prejudicial to the public interest
unless the Commission is satisfied of any one or more of the following
circumstances, that is to say -
(a) that the
restriction is reasonably necessary, having regard to the character of the
goods to which it applies, to protect the public against injury (whether to
persons or to premises) in connection with the consumption, installation or use
of those goods;
(b) that the removal of
the restriction would deny to the public as purchasers, consumers or users of
any goods, other specific and substantial benefits or advantages enjoyed or
likely to be enjoyed by them as such, whether by virtue of the restriction
itself or of any arrangements or operations resulting therefrom;
(c) that the restriction is reasonably necessary to counteract measures taken
by any one person not party to the agreement with a view to preventing or
restricting competition in or in relation to the trade or business in which the
persons party thereto are engaged,
(d) that the
restriction is reasonably necessary to enable the persons party to the
agreement to negotiate fair terms for the supply of goods to, or the
acquisition of goods from, any one person party thereto who controls a
preponderant part of the trade or business of acquiring or supplying such
goods, or for the supply of goods to any person not party to the agreement and
not carrying on such a trade or business who, either alone or in combination
with any other such persons, controls a preponderant part of the market for
such goods;
(e) that, having regard
to the conditions actually obtaining or reasonably foreseen at the time of the
application, the removal of the restriction would be likely to have a serious
and persistent adverse effect on the general level of unemployment in an area,
or in areas taken together, in which a substantial proportion of the trade, or
industry to which the agreement relates is situated;
(f) that, having regard
to the conditions actually obtaining or reasonably foreseen at the time of the
application, the removal of the restriction would be likely to cause a
reduction in the volume or earnings of the export business which is substantial
either in relation to the whole export business of India or in relation to the
whole business (including export business) of the said trade or industry;
(g) that the
restriction is reasonably required for purposes in connection with the
maintenance of any other restriction accepted by the parties, whether under the
same agreement or under any other agreement between them, being a restriction
which is found by the Commission not to be contrary to the public interest upon
grounds other than those specified in this paragraph, or has been so found in
previous proceedings before the Commission;
(h) that the restriction does not directly or indirectly restrict or discourage
competition to any material degree in any relevant trade or industry and is not
likely to do so;
(i) that such
restriction has been expressly authorised and approved by the Central
Government;
(j) that such
restriction is necessary to meet the requirements of the defence of India or any part thereof,
or for the security of the State; or
(k) that the
restriction in necessary to ensure the maintenance of supply of goods and
services essential to the community. and is further satisfied (in any such
case) that the restriction is not unreasonable having regard to the balance
between those circumstances and any detriment to the public or to persons not
parties to the agreement (being purchasers, consumers or users of goods
produced or sold by such parties, or persons engaged or seeking to become
engaged in the trade or business of selling such goods or of producing or
selling similar goods) resulting or likely to result from the operation of the
restriction.
(2) In this section,
"purchasers", "consumers" and "users" include
person purchasing, consuming or using for the purpose or in the course of trade
or business or for public purposes; and references in this section to any one
person include references to any two or more persons being inter-connected
undertakings or individuals carrying on business in partnership with each
other.
Section 39
Special Conditions for Avoidance of Conditions for Maintaining Resale Prices.
(1) Without prejudice to the provisions of this Act with respect to
registration and to any of the powers of the Commission or of the Central
Government under this Act, any term or condition of a contract for the sale of
goods by a person to a wholesaler or retailer or any agreement between a person
and a wholesaler or retailer relating to such sale shall be void insofar as it
purports to establish or provide for the establishment of minimum prices to be
charged on the resale of goods in India.
(2) After the commencement of this Act, no supplier of goods whether directly
or through any person or association of persons acting on his behalf shall
notify to dealers or otherwise publish on or in relation to any goods, a price
stated or calculated to be understood as the minimum price which may be charged
on the resale of the goods in India.
(3) This section shall apply to
patented articles (including articles made by a patented process and articles
made under any trade mark) as it applies to other goods and notice of any term
or condition which is void by virtue of this section or which would be so void if
included in a contract of sale or agreement relating to the sale of such
article shall be of no effect for the purpose of limiting the right of a dealer
to dispose of that article without infringement of the patent or trade mark, as
the case may be :
Provided that nothing in this
section shall affect the validity as between the parties and their successors,
of any term or condition of a licence granted by the proprietor of a patent or
trade mark or by a licensee of patent or trade mark or of any assignment of a
patent or trade mark, so far as it regulates the prices at which articles
produced or processed by the licensee or the assignee may be sold by him.
Explanation : In this section and in section 40, the term
"supplier", in relation to supply of any goods, means a person who
supplies goods to any person for the ultimate purpose of resale and includes a
wholesaler, and the term "dealer" includes a supplier and a retailer.
Section 40
Prohibition of Other Measures for Maintaining Resale Prices.
(1) Without prejudice to the
provisions of this Act with respect to registration and to any of the powers of
the Commission or of the Central Government under this Act, no supplier shall
withhold supplies of any goods from any wholesaler or retailer seeking to obtain
them for resale in India on the ground that the wholesaler or retailer –
(a) has sold in India
at a price below resale price, goods obtained either directly or indirectly,
from that supplier, or has supplied such goods, either directly or indirectly,
to a third party who had done so; or
(b) is likely if the
goods are supplied to him to sell them in India at a price below that price or
supply them, either directly or indirectly, to a third party who would be
likely to do so.
(2) Nothing contained in sub-section
(1) shall render it unlawful for a supplier to withhold supplies of goods from
any wholesaler or retailer or to cause or procure another supplier to do so if
he has reasonable cause to believe that the wholesaler or the retailer, as the
case may be, has been using as loss leaders any goods of the same or a similar
description whether obtained from that supplier or not.
(3) A supplier of goods shall be deemed to be withholding supplies of goods
from a dealer if he –
(a) refuses or fails to
suply those goods to the order of the dealer;
(b) refuses of supply those goods to the dealer except at prices, or on terms
or conditions as to credit, discount or other matters which are less favourable
than those at or on which he normally supplies those goods to other dealers
carrying on business in similar circumstances; or
(c) treats a dealer, in
spite of a contract with such dealer for the supply of goods, in a manner less
favourable than that in which he normally treats other dealers in respect of
time or methods of delivery or other matters arising in the performance of the
contract.
(4) A supplier shall not be deemed
to be withholding supplies of goods on any of the ground mentioned in
sub-section (1), if, in addition to that ground, he has any
other ground which alone would entitle him to withhold such supplies.
Explanation I : "Resale price", in relation to sale of goods
of any description, means any price notified to the dealer or otherwise
published by or on behalf of the
supplier of the goods in question (whether lawfully or not) as the price or
minimum price which is to be charged on, or is recommended as appropriate for,
a sale of that description or any price prescribed or purporting to be
prescribed for that purpose by any contract or agreement between the wholesaler
or retailer and such supplier.
Explanation II : A wholesaler or retailer is said to use goods as loss
leaders when he re-sells them otherwise than in a genuine seasonal or clearance
sale not for the purpose of making a profit on the resale but for the purpose
of attracting to the establishment at which the goods are sold, customers
likely to purchase other goods or otherwise for the purpose of advertising his
business.
Section 41
Power of Commission to Exempt Particular Classes of Goods from Sections 39 and 40
(1) The Commission may, on a
reference made to it by the Director General or any other person interested, by
order, direct that goods of any class specified in the order shall be exempt
from the operation of sections 39 and 40 if the Commission is satisfied that in
default of a system of maintained minimum resale prices applicable to those
goods -
(a) the quality of
goods available for sale or the varieties of goods so available would be
substantially reduced to the detriment of the public as consumers or users of
those goods, or
(b) the prices at which
the goods are sold by retail would, in general and in the long run, be
increased to the detriment of the public as such consumers or users, or
(c) any necessary
services actually provided in connection with or after the sale of the goods by
retail would cease to be so provided or would be substantially reduced to the
detriment of the public as such consumers or users.
(2) On a reference under this
section in respect of goods of any class which have been the subject of
proceedings before the Commission under section 31, the Commission may treat as
conclusive any evidence of fact made in those proceedings.
Section 42
Power of Director General to Obtain Information.
(1) If the Director General has
reasonable cause to believe that any person is a party to an agreement subject
to registration under section 35, he may give notice to that person requiring
him within such time, not less than thirty days, as may be specified in the
notice, to notify to the Director General whether he is a party to any such
agreement and, if so, to furnish to the Director General such particulars of
the agreement as may be specified in the requisition.
(2) The Director General may give
notice to any person by whom particulars are furnished under section 35 in
respect of an agreement or to any other person being a party to the agreement
requiring him to furnish to the Director General such further documents or
information in his possession or control as the Director Genral may consider
expedient for the purpose of, or in connection with, the registration of the
agreement.
(3) Where a notice under this section is given to a trade association, the
notice may be given to the secretary, manager or other similar officer of the
association and for the purposes of this section any such association shall be
treated as a party to an agreement to which members of the association, or
persons represented on the association by those members, are parties as such.
(4) If the particulars called for
under sub-section (1), or sub-section (2) are not furnished, the Commission
may, on the application of the Director General-
(a) order the person
or, as the case may be, the association to furnish those particulars to the
Director General within such time as may be specified in the order, or
(b) authorise the
Director General to treat the particulars contained in any document or
information in his possession as the particulars relating to the agreement, or
(c) in case the
Commission is satisfied that the failure to furnish the particulars is wilful,
make an order restraining wholly or partly the parties to the agreement from
acting on such agreement and from making any other agreement to the like
effect.
Section 43
Power to Call for Information
Notwithstanding anything contained
in any other law for the time being in force, the Central Government may, by a
general or special order, call upon the owner of any undertaking to furnish to
that Government periodically or as and when required any information concerning
the activities carried on by the undertaking, the connection between it and any
other undertaking, including such other information relating to its
organisation, business, cost of production, conduct, trade practice or
management, as may be prescribed to enable that Government to carry out the
purposes of this Act.
Section 44
Power to Appoint Inspectors
(1) The Central Government may, if
it is of opinion that there are circumstances suggesting that an undertaking is
indulging in any monopolistic or restrictive, or
unfair, trade practice or is, in any way, trying to acquire any control over
any dominant or inter-connected undertaking, appoint one or more Inspectors for
making an investigation into the affairs of the undertaking.
(2) The provisions of section 240
and section 240A of the Companies Act, 1956 (1 of 1956), so far as may be,
shall apply to an investigation made by an Inspector appointed under this
section as they apply to an investigation made by the Inspector appointed under
that Act.
Section 45
Penalty for Contravention of Section 21.
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.
Section 46
Penalty for Contravention of Section 27.
If any person contravenes the
provisions of section 27, he shall be punishable with imprisonment for a term
which may extend to five years, or with fine which may extend to Rs. one lakh,
or with both and where the offence is a continuing one, with a further fine
which may extend to one thousand rupees for every day, after the first, during
which such contravention continues.
Section 47
Penalty for Contravention of Section 25.
OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.
Section 48
Penalty for Failure to Register Agreements
(1) If any person fails, without
any reasonable excuse, to register an agreement which is subject to
registration under this Act, he shall be punishable with imprisonment for a
term which may extend to three years, or with fine which may extend to five
thousand rupees or with both, and where the offence is a continuing one, with a
further fine which may extend to five hundred rupees for every day, after the
first, during which such failure continues.
(2) Omitted by the MRTP
(Amendment) Act, 1991, section 20, w.e.f. 27-9-1991.
Section 49
Penalty for Offences in Relation to Furnishing of Information.
(1) If any person fails, without
any reasonable excuse, to produce any books or papers, or to furnish any
information, required by the Director General under section 11, or to furnish
any information required under section 43 or to comply with any notice duly
given to him under section 42, he shall be punishable with imprisonment for a
term which may extend to three months, or with fine which may extend to two
thousand rupees, or with both, and where the offence is a continuing one, with
a further fine which may extend to one hundred rupees for every day, after the
first, during which such failure continues.
(2) If any person, who furnishes
or is required to furnish any particulars, documents or any information –
(a) makes any statement
or furnishes any document which he knows or has reason to believe to be false
in any material particular; or
(b) omits to state any
material fact knowing it to be material; or
(c) wilfully alters, suppresses or destroys any document which is required to
be furnished as aforesaid, He shall be punishable with imprisonment for a term
which may extend to six months, or with fine which may extend to five thousand
rupees, or with both.
Section 50
Penalty for Offences in Relation to Orders under the Act
(1) A person, who is deemed under
section 13 to be guilty of an offence under this Act, shall be punishable with
imprisonment for term which may extend to three years, or with fine which may
extend to fifty thousand rupees, or with both, and where the offence is a
continuing one, with a further fine which may extend to five thousand rupees
for every day, after the first, during which such contravention continues.
(2) If any person contravenes, without any reasonable excuse, any order made by
the Central Government under section 31 or any order made by the Commission
under section 37, he shall be punishable with imprisonment for a term which
shall not be less than, -
(a) in the case of the
first offence, six months but not more than three years, and
(b) in the case of any second or subsequent offence in relation to the goods or
services in respect of which the first offence was committed, two years but not
more than seven years, and, in either case, where the contravention is a
continuing one, also with fine which may extend to five thousand rupees for
every day, after the first, during which such contravention continues :
Provided that the Court may, for
reasons to be recorded in writing, impose a sentence of imprisonment for a term
lesser than the minimum term specified in this sub-section.
(3) If any person carries on any trade practice which is prohibited by this
Act, he shall be punishable with imprisonment for a term which may extend to
six months, or with fine which may extend to five thousand rupees, or with
both, and where the offence is a continuing one, with a further fine which may
extend to five hundred rupees for every day, after the first, during which such
contravention continues.
Section 51
Penalty for Offences in Relation to Resale Price Maintenance.
If any person contravenes the
provisions of section 39 or section 40, he shall be punishable with imprisonment
for a term which may extend to three months, or with fine which may extend to
five thousand rupees, or with both.
Section 52
Penalty for Wrongful Disclosure of Information
If any person discloses an
information in contravention of section 60, he shall be punishable with
imprisonment for a term which may extend to six months, or with fine which may
extend to five hundred rupees, or with both.
Section 53
Offences by Companies
(1) Where an offence under this
Act has been committed by a company, every person who, at the time the offence
was committed, was in charge of, and was responsible to, the company for the
conduct of the business of the company, as well as the company, shall be deemed
to be guilty of the offence and shall be liable to be proceeded against and
punished accordingly :
Provided that nothing contained
in this sub-section shall render any such person liable to any punishment if he
proves that the offence was committed without his knowledge or that he had
exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything
contained in sub-section (1), where an offence under this Act has been committed
by a company and it is proved that the offence has been committed with the
consent or connivance of, or is attributable to any neglect on the part of, any
director, manager, secretary or other officer of the company, such director,
manager, secretary or other officer shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly.
Explanation : For the purposes of this section –
(a) "company" means a
body corporate and includes a firm or other association of individuals; and
(b) "director", in
relation to a firm, means a partner in the firm.
Section 54
Power of Central Government to Impose Conditions, Limitations and Restrictions on Approvals, Etc
(1) The Central Government may,
while -
(a) according any
approval, sanction, permission, confirmation or recognition, or
(b) giving any direction or issuing any order, or
(c) granting any
exemption.
Under this Act in
relation to any matter, impose such conditions, limitations or restrictions as
it may think fit.
(2) Omitted by the MRTP
(Amendment) Act, 1991, section 24, w.e.f. 27-9-1991.
(3) If any condition, limitation
or restriction imposed by the Central Government under sub-section (1) is
contravened, the Central Government may rescind or withdraw the approval,
sanction, permission, confirmation, recognition, direction, order or exemption
made or granted by it.
Section 55
Appeals
Any person aggrieved by any decision on any question referred to in clause (a),
clause (b) or clause (c) of section 2A, or any order made by the Central
Government under Chapter III or Chapter IV, or, as the case may be, or the
Commission under section 12A or section 13 or section 36D or section 37, may,
within sixty days from the date of the order, prefer an appeal to the Supreme
Court on one or more of the grounds specified in section 100 of the Code of
Civil Procedure, 1908 (5 of 1908
Section 56
Jurisdiction of Courts to Try Offences
No Court inferior to that of a Court of
Session shall try any offence under this Act.
Section 57
Cognizance of Offences
No Court shall take cognizance of
any offence punishable under this Act except on a report in writing of the
facts constituting such offence made by a person who is a public servant as
defined in section 21 of the Indian Penal Code 1860 (45 of 1860).
Section 58
Magistrates' Power to Impose Enhanced Penalties.
REPEALED BY THE MRTP (AMENDMENT) ACT, 1984, section 46
W.E.F. 1-8-1984.
Section 59
Protection Regarding Statements Made to the Commission
No statement made by a person in
the course of giving evidence before the Commission shall subject him to, or be
used against him in, any civil or criminal proceeding except a prosecution for
giving false evidence by such statements :
Provided that the Statement –
(a) is made in respect to a
question which he is required by the Commission to answer; and
(b) is relevant to the
subject-matter of the inquiry.
Section 60
Restriction on Disclosure of Information
(1) No information relating to any
undertaking being an information which has been obtained by or on behalf of the
Commission for the purposes of this Act, shall, without the previous permission
in writing of the owner for the time being of the undertaking, be disclosed
otherwise than in compliance with or for the purposes of this Act.
(2) Nothing contained in
sub-section (1) shall apply to a disclosure of an information made for the
purpose of any legal proceeding pursuant to this Act or of any criminal
proceeding which may be taken, whether pursuant to this Act or otherwise, or
for the purposes of any report relating to any such proceeding.
(3) The provisions of sub-section
(2) relating to the disclosure of information shall not extend to the
disclosure of the source of such information, except where the disclosure of
such source is required by any Court, Tribunal or other authority.
Section 61
Power of the Central Government to Require the Commission to Submit A Report.
The Central Government may at any
time require the Commission to submit to it a report on the general effect on
the public interest of such trade practices as, in the
opinion of that Government, either constitute or contribute to monopolistic or
restrictive or unfair trade practices or concentration of economic power to the
common detriment.
Section 62
Reports of the Commission to be Placed before Parliament
The Central Government shall cause
to be laid before both Houses of Parliament an annual report, and every report
which may be submitted to it by the Commission from time to time, pertaining to
the execution of the provisions of this Act.
Section 63
Members, Etc., to be Public Servants
Every member of the Commission,
Director General, and every member of the staff of the Commission, and of the
Director General, shall be deemed, while acting or purporting to act in
pursuance of any of the provisions of this Act, to be public servants within
the meaning of section 21 of the India Penal Code 1860 (45 of 1860).
Section 64
Protection of Action taken in Good Faith
(1) No suit, prosecution or other
legal proceedings shall lie against the Commission or any member, officer or
servants of the Commission, the Director General or any member of the staff of
the Director General in respect of anything which is in good faith done or
intended to be done under this Act.
(2) No suit shall be maintainable
in any civil court against the Central Government or any officer or employee of
that Government for any damage caused by anything done under, or in pursuance
of any provisions of this Act.
Section 65
Inspection of and Extracts from, the Register
(1) The register, other than the
special section, shall be open to public inspection during such hours and
subject to the payment of such fees, not exceeding rupees twenty-five, as may
be prescribed.
(2) Any person may upon the
payment of such fee, not exceeding rupee one, for every one hundred words, as
may be prescribed, require the Director General to supply to him a copy of, or
extract from, any particulars entered or filed in the register, other than the
special section, certified by the Director General to be a true copy or
extract.
(3) A copy of, or extract from,
any document entered or filed in the register certified under the hand of the
Director General or any officer authorised to act in this behalf shall, in all
legal proceedings. be admissible in evidence as of equal validity with the
original.
Section 66
Power to Make Regulations
(1) The Commission may by
notification make regulations for the efficient performance of its functions
under this Act.
(2) In particular, and without
prejudice to the generality of the foregoing provisions, such regulations may
provide for all or any of the following matters, namely :-
(a) the conditions of
service, as approved by the Central Government, of persons appointed by the
Commission;
(b) the issue of the
processes to Government and to other persons and the manner in which they may
be served;
(c) the manner in which
the special section of the registered shall be maintained and the particulars
to be entered or filed therein;
(d) Omitted by the MRTP
(Amendment) Act, 1984, w.e.f. 1-8-1984;
(e) the payment of
costs of any proceedings before the Commission by the parties concerned and the
general procedure and conduct of the business of the Commission;
(f) any other matter
for which regulations are required to be, or may be, made under this Act.
(3) The Central Government shall
cause every regulation made under this section to be laid, as soon as may be
after it is made, before each House of Parliament, while it is in session, for
a total period of thirty days which may be comprised in one session or in two
or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both
Houses agree in making any modification in the regulation, or both Houses agree
that the regulation should not be made, the regulations shall thereafter have
effect only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that regulation.
Section 67
Power to Make Rules
(1) The Central Government may, by
notification, make rules to carry out the purposes of this Act.
(2) In particular, and without
prejudice to the generality of the foregoing power, such rules may provide for
all or any of the following matters, namely :-
(a) the form and manner
in which notices may be given or applications may be made to it under this Act
and the fees payable therefor;
(ab) the form and the
manner in which an application for recognition shall be made under clause (n)
of section 2;
(ac) Omitted by the
MRTP (Amendment) Act 1991, w.e.f. 27-9-1991.
(b) the particulars to be furnished under this Act and the form and manner in
which and the intervals within which they may be furnished;
(ba) Omitted by the
MRTP (Amendment) Act, 1991, w.e.f. 27-9-1991.
(c) the conditions of
service of members of the Commission and the Director General;
(ca) the duties and functions of the Director General;
(d) the places and the
manner in which the register shall be maintained and the particulars to be
entered therein;
(da) the manner in
which every authenticated copy of any order made by the Commission in respect
of any restrictive, or unfair, trade practice shall be recorded;
(e) the fees payable for inspection of the register and for obtaining certified
copies of particulars from the register;
(f) the travelling and
other expenses payable to persons summoned by the Commission to appear before
it;
(g) Omitted by the MRTP
(Amendment) Act, 1991, w.e.f. 27-9-1991.
(h) any other matter
which is required to be, or may be, prescribed.
(2A) Any rule made under clause
(c) of sub-section (2) in relation to the conditions of service of the members
of the Commission may be made retrospectively from a date not earlier than the
1st day of January, 1986, so, however, that such rule shall not prejudicially
affect the interests of any such member.
(3) Every rule made by the Central
Government under this Act shall be laid, as soon as may be after it is made,
before each House of Parliament while it is in session for a total period of
thirty days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately following the
session or the successive sessions aforesaid, both Houses agree in making any
modification in the rule or both Houses agree that the rule should not be made,
the rule shall thereafter have effect only in such modified form or be of no
effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously
done under that rule.
Schedules
