Law of Monopolies, Restrictive and Unfair Trade Practices by Avtar Singh

This is a topic wise study of the MRTP Act. The scope and ambit of the Act, its application to industrial and trading houses, the powers of the Commission, the meaning, definition and scope of the words, 'restrictive trade practices ' and the interpretation given by the Supreme Court to various practices, is the subject matter of this work.

A must book for lawyers, students of law and competitive examinations and business and industrial houses.

• Student Advocate :

The worth of the book is in its ability to enable a newcomer to the field to learn the basics of MRTP with ease. The book contains an outline of the law of MRTP, including its original objects and the manner in which it has changed over the years. An important feature of the book is that it discusses important topics relevant to the chapter concerned and at the same time retains the basic format of analysing each provision separately.

• Academy Law Review :

The book under review is important in the light of recent amendments to the Act. The book is divided into six chapters. The author has covered important aspects of the statute. The book will be of assistance to legal practitioners and law students.

• Cochin University Law Review :

The present edition is fully updated and contains three appendices with the salient features of the amendment to the M.R.T.P. Act in 1991. While retaining the general frame work, the contents have been enriched by incorporating the important statutory changes and the developments on the judicial front. The presentation of the book is excellent. The arrangement of case index, footnotes and printing is very clear.

• Kerala Law Times :

A succinct and illustrative exposition of the provisions of the Law of Monopolies Restrictive and Unfair Trade Practices is given in this book. The learned author in a wide compass has taken within its fold discussion on all the situations, possibilities and aspects that can arise in the practical working of these provisions and contains vivid, analytical discussions on the various propositions arising therein. Decided cases made relevant by the provisions of the Act have been brought in aid.

• Management Accountant :

This effort would immensely help the executives in the private sector units, the press and the public undertakings. This is a useful compendium to the students of ICSI, the other professionals in the merchant banking and consultancy divisions, and specially those persons and consultants who are concerned with reconstruction schemes under the Companies Act, 1956, and the MRTP Act. The treatise presents the legal provisions in a lucid and interesting manner. Each section of the Act has been analysed and amplified with comments and comprehensive notes.

• Review Projector :

The book under review is not a commentary but a full fledged thrust into the 'Myriads ' of the jungle of MRTP. A bird 's eye view suggests that an attempt has been positively made to comprehend the otherwise cumbersome and confusing Act. The book stands out as a good text book for CS/ICWA/Post Graduate/Graduate examinations and also for libraries.

                   PREFACE TO THE THIRD EDITION V
                   PREFACE TO THE SECOND EDITION VII
                   TABLE OF CASES XVII

                   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

                   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

                   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

                   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

                   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

                   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

                   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

                   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

                   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

                   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

                   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