The MRTP Act, 1969

MRTP ACT

PREAMBLE

CHAPTER I – PRELIMINARY

Section 1 – SHORT TITLE, EXTENT AND COMMENCEMENT

Section 2 – DEFINITIONS

Section 2A – POWER OF CENTRAL GOVERNMENT TO DECIDED CERTAIN MATTERS.

Section 3 – ACT NOT TO APPLY IN CERTAIN CASES.

Section 4 – APPLICATION OF OTHER LAWS NOT BARRED.

CHAPTER II – MONOPOLIES AND RESTRICTIVE TRADE PRACTICES COMMISSION

Section 5 – ESTABLISHMENT AND CONSTITUTION OF THE COMMISSION.

Section 6 – TERMS OF OFFICE, CONDITIONS OF SERVICE, ETC., OF MEMBERS.

Section 7 – REMOVAL OF MEMBERS FROM OFFICE IN CERTAIN CIRCUMSTANCES.

Section 8 – APPOINTMENT OF DIRECTOR GENERAL, ETC., AND STAFF OF THE COMMISSION.

Section 9 – SALARIES, ETC., TO BE DEFRAYED OUT OF THE CONSOLIDATED FUND OF INDIA.

Section 10 – INQUIRY INTO MONOPOLISTIC OR RESTRICTIVE TRADE PRACTICES BY COMMISSION

Section 11 – INVESTIGATION BY DIRECTOR GENERAL BEFORE ISSUE OF PROCESS IN CERTAIN CASES

Section 12 – POWERS OF THE COMMISSION.

Section 12A – POWER OF THE COMMISSION TO GRANT TEMPORARY INJUNCTIONS.

Section 12B – POWER OF THE COMMISSION TO AWARD COMPENSATION.

Section 12C – ENFORCEMENT OF THE ORDER MADE BY THE COMMISSION UNDER SECTION 12A OR 12B

Section 13 – ORDERS OF COMMISSION MAY BE SUBJECT TO CONDITIONS, ETC.

Section 13A – POWER OF THE COMMISSION TO CAUSE INVESTIGATION TO FIND OUT WHETHER OR NOT ORDERS MADE BY IT HAVE BEEN COMPLIED WITH

Section 13B – POWER TO PUNISH FOR CONTEMPT.

Section 14 – ORDERS WHERE PARTY CONCERNED DOES NOT CARRY ON BUSINESS IN INDIA.

Section 15 – RESTRICTION OF APPLICATION OF ORDERS IN CERTAIN CASES.

Section 16 – SITTINGS OF THE COMMISSION.

Section 17 – HEARING TO BE IN PUBLIC EXCEPT IN SPECIAL CIRCUMSTANCES.

Section 18 – PROCEDURE OF THE COMMISSION.

Section 19 – ORDERS OF THE COMMISSION TO BE NOTED IN THE REGISTER.

CHAPTER III – CONCENTRATION OF ECONOMIC POWER

Section 20 – UNDERTAKINGS TO WHICH THIS PART APPLIES. – OMITTED

Section 21 – EXPANSION OF UNDERTAKINGS. – OMITTED

Section 22 – ESTABLISHMENT OF NEW UNDERTAKINGS. – OMITTED

Section 22A – POWER TO EXEMPT. – OMITTED

Section 23 – MERGER, AMALGAMATION AND TAKE OVER. – OMITTED

Section 24 – MERGER, AMALGAMTION AND TAKE OVER IN CONTRAVENTION OF SECTION 23. – OMITTED

Section 25 – DIRECTORS OF UNDERTAKINGS NOT TO BE APPOINTED DIRECTORS OF OTHER UNDERDATINGS – OMITTED

Section 26 – REGISTRATION OF UNDERTAKINGS TO WHICH PART A APPLIES. – OMITTED

Section 27 – DIVISION OF UNDERTAKINGS.

Section 27A – POWER OF THE CENTRAL GOVERNMENT TO DIRECT SEVERANCE OF INTER-CONNECTION BETWEEN UNDERTAKINGS

Section 27B – MANNER IN WHICH ORDER MADE UNDER SECTION 27 OR SECTION 27A SHALL BE CARRIED OUT

Section 28 – MATTERS TO BE CONSIDERED BY THE CNETRAL GOVERNMENT – OMITTED

Section 29 – OPPORTUNITY OF BEING HEARD. – OMITTED

Section 30 – TIME WITHIN WHICH ACTION SHOULD BE TAKEN. – OMITTED

Section 30A – APPLICATION OF CHAPTER. – OMITTED

Section 30B – RESTRICTIONS ON THE ACQUISITION OF CERTAIN SHARES. – OMITTED

Section 30C – RESTRICTION ON TRANSFER OF SHARES. – OMITTED

Section 30D – RESTRICTION ON THE TRANSFER OF SHARES OF FOREIGN COMPANIES. – OMITTED

Section 30E – POWER OF THE CENTRAL GOVERNMENT TO DIRECT COMPANIES -OMITTED

Section 30F – TIME WITHIN WHICH REFUSAL TO BE COMMUNICATED. – OMITTED

Section 30G – NOTHING IN SECTIONS 30B TO 30E TO APPLY TO GOVERNMENT COMPANIES ETC. -OMITTED

CHAPTER IV – MONOPOLISTIC TRADE PRACTICES

Section 31 – INVESTIGATION BY COMMISSION OF MONOPOLISTIC TRADE PRACTICES.

Section 32 – MONOPOLISTIC TRADE PRACTICE TO BE DEEMED TO BE PREJUDICIAL TO THE PUBLIC INTEREST EXCEPT IN CERTAIN CASES

CHAPTER V – RESTRICTIVE TRADE PRACTICES AND UNFAIR TRADE PRACTICES

PART A – Registration of agreements relating to Restrictive trade practices

Section 33 – REGISTRABLE AGREEMENTS RELATING TO RESTRICTIVE TRADE PRACTICES.

Section 34 – REGISTRAR OF RESTRICTIVE TRADE AGREEMENTS. – REPEALED

Section 35 – REGISTRATION OF AGREEMENTS.

Section 36 – KEEPING THE REGISTER.

PART B – Unfair Trade Practices

Section 36A – DEFINITION OF UNFAIR TRADE PRACTICE.

Section 36B – INQUIRY INTO UNFAIR TRADE PRACTICES BY COMMISSION.

Section 36C – INVESTIGATION BY DIRECTOR GENERAL BEFORE AN ISSUE OF PROCESS IN CERTAIN CASES

Section 36D – POWERS WHICH MAY BE EXERCISED BY THE COMMISSION INQUIRING INTO AN UNFAIR TRADE PRACTICE

Section 36E – POWER RELATING TO RESTRICTIVE TRADE PRACTICES MAY BE EXERCISED OR PERFRMED IN RELATION TO UNFAIR TRADE PRACTICES

CHAPTER VI – CONTROL OF CERTAIN RESTRICTIVE TRADE PRACTICES

Section 37 – INVESTIGATION INTO RESTRICTIVE TRADE PRACTICES BY COMMISSION.

Section 38 – PRESUMPTION AS TO THE PUBLIC INTEREST.

Section 39 – SPECIAL CONDITIONS FOR AVOIDANCE OF CONDITIONS FOR MAINTAINING RESALE PRICES

Section 40 – PROHIBITION OF OTHER MEASURES FOR MAINTAINING RESALE PRICES.

Section 41 – POWER OF COMMISSION TO EXEMPT PARTICULAR CLASSES OF GOODS FROM SECTIONS 39 AND 40

CHAPTER VII – POWER TO OBTAIN INFORMATION AND APPOINT INSPECTORS

Section 42 – POWER OF [DIRECTOR GENERAL] TO OBTAIN INFORMATION.

Section 43 – POWER TO CALL FOR INFORMATION.

Section 44 – POWER TO APPOINT INSPECTORS.

CHAPTER VIII – OFFENCES AND PENALTIES

Section 45 – PENALTY FOR CONTRAVENTION OF SECTION 21. – OMITTED

Section 46 – PENALTY FOR CONTRAVENTION OF [* * *] SECTION 27.

Section 47 – PENALTY FOR CONTRAVENTION OF SECTION 25. – OMITTED

Section 48 – PENALTY FOR FAILURE TO REGISTER AGREEMENTS.

Section 48A – PENALTY FOR CONTRAVENTION OF ORDER MADE UNDER SECTION 27B OR FOR POSSESSION OF PROPERTY SOLD TO ANY PERSON UNDER SECTION 27B

Section 48B – PENALTY FOR CONTRAVENTION OF SECTION 27B.

Section 48C – PENALTY FOR CONTRAVENTION OF ORDER MADE BY COMMISSION RELATING TO UNFAIR TRADE PRACTICES

Section 49 – PENALTY FOR OFFENCES IN RELATION TO FURNISHING OF INFORMATION.

Section 50 – PENALTY FOR OFFENCES IN RELATION TO ORDERS UNDER THE ACT.

Section 51 – PENALTY FOR OFFENCES IN RELATION TO RESALE PRICE MAINTENANCE.

Section 52 – PENALTY FOR WRONGFUL DISCLOSURE OF INFORMATION.

Section 52A – PENALTY FOR CONTRAVENTION OF ANY CONDITION OR RESTRICTION, ETC.

Section 52B – PENALTY FOR MAKING FALSE STATEMENT IN APPLICATION, RETURN, ETC.

Section 53 – OFFENCES BY COMPANIES.

CHAPTER IX – MISCELLANEOUS

Section 54 – POWER OF CENTRAL GOVERNMENT TO IMPOSE CONDITIONS, LIMITATIONS AND RESTRICTIONS ON APPROVALS ETC., GIVEN UNDER THE ACT

Section 55 – APPEALS.

Section 56 – JURISDICTION OF COURTS TO TRY OFFENCES.

Section 57 – COGNIZANCE OF OFFENCES.

Section 58 – MAGISTRATES’ POWER TO IMPOSE ENHANCED PENALTIES. – REPEALED

Section 59 – PROTECTION REGARDING STATEMENTS MADE TO THE COMMISSION.

Section 60 – RESTRICTION ON DISCLOSURE OF INFORMATION.

Section 61 – POWER OF THE CENTRAL GOVERNMENT TO REQUIRE THE COMMISSION TO SUBMIT A REPORT

Section 62 – REPORTS OF THE COMMISSION TO BE PLACED BEFORE PARLIAMENT.

Section 63 – MEMBERS, ETC., TO BE PUBLIC SERVANTS.

Section 64 – PROTECTION OF ACTION TAKEN IN GOOD FAITH.

Section 65 – INSPECTION OF AND EXTRACTS FROM, THE REGISTER.

Section 66 – POWER TO MAKE REGULATIONS.

Section 67 – POWER TO MAKE RULES.

Schedule Part I – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.]

Schedule Part II – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.]

Preamble

ACT NO. 54 OF 1969

An Act to provide that the operation of the economic system does not result in the concentration of economic power to the common detriment, for the control of monopolies, for the prohibition of monopolistic and restrictive trade practices and for matters connected therewith or incidental thereto. Be it enacted by Parliament in the Twentieth Year of the Republic of India as follows: –

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[1] as the Central Government may, [2]by notification, appoint 1a .

[1] Came into force on 1-6-1970, vide S.O.1981, dated 30^th May 1970,published in the Gazette of India, Extra. 1970,P.II, Sec.3 (ii), p. 833

[2] Subs by Act 30 of 1984,sec 2, for “by notification in the Official Gazette” (w.e.f. 1-8-1984)

[1]Section 2A

POWER OF CENTRAL GOVERNMENT TO DECIDED CERTAIN MATTERS

If any question arises as to whether, –

(a) two or more individuals, trustees, associations of individuals, firms or bodies corporate or any combination thereof, constitute, or fall within, a group, or

(b) two or more undertakings are inter-connected undertakings within the meaning of this Act, or

(c) two or more bodies corporate are under the same management, the Central Government or where the Board of Company Law Administration, constituted under section 10E of the Companies Act, 1956 (1 of 1956), is, by notification, authorised so to do by the Central Government, that Board shall decide such question, after giving to the persons concerned a reasonable opportunity of being heard.

[1] Ins by Act 30 of 1984,sec 4 (w.e.f. 1-8-1984)

Section 3

ACT NOT TO APPLY IN CERTAIN CASES

Unless the Central Government, [1]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.

[2]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.

[1] Subs by Act 30 of 1984, sec 2 for “by notification in the Official Gazette” (w.e.f. 1-8-1984)

[2] Ins by Act 30 of 1984,sec 5 (w.e.f. 1-8-1984)

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, [1]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.

[1] Subs by Act 30 of 1984,sec 2, for “by notification in the Official Gazette” (w.e.f. 1-8-1984)

Section 6

TERMS OF 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.

(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.

(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.

[1](3A) 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.

(3B) 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. 55 ]

(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.

(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 [2]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) [3]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.

[1] Ins by Act 30 of 1984, sec 6 (w.e.f. 1-8-1984)

[2] Subs by Act 30 of 1984,sec 6, for “every member” (w.e.f. 1-8-1984)

[3] Subs by Act 30 of 1984,sec 6, for “Any member” (w.e.f. 1-8-1984)

Section 7

REMOVAL 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

(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.

(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.

[1]Section 8

APPOINTMENT 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, authorize 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 authorized 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.

[1] Subs by Act 30 of 1984, sec 7, for section 8 (w.e.f. 1-8-1984)

Section 9

SALARIES, 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 ], or

(ii) upon a reference made to it by the Central Government or a State Government, or

(iii) upon an application made to it by the [Director General], or

(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.

Section 12

POWERS 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;

(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.

(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 66 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.

(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, authorize 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

Section 12A

POWER OF THE COMMISSION TO GRANT TEMPORARY INJUNCTIONS

(1) Where, during an inquiry before the Commission, it is proved, whether by the complainant, Director General, any trader or class of traders or any other person, by affidavit or otherwise, that any undertaking or any person is carrying on, or is about to carry on, any monopolistic or any restrictive, or unfair, trade practice and such monopolistic or restrictive, or unfair, trade practice is likely to affect prejudicially the public interest or the interest of any trader, class of traders or traders generally or of any consumer generally, the Commission may, for the purposes of staying or preventing the undertaking or, as the case may be, such person from causing such prejudicial effect, by order, grant a temporary injunction restraining such undertaking or person from carrying on any monopolistic or restrictive, or unfair, trade practice until the conclusion of such inquiry or until further orders.

(2) The Provisions of rules 2A to 5 (both inclusive) of Order XXXIX of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), shall, as far as may be, apply to a temporary injunction issued by the Commission under this section, as they apply to a temporary injunction issued by a civil court, and any reference in any such rule to a suit shall be construed as a reference to an inquiry before the Commission.

Explanation 1: For the purposes of this section, an inquiry shall be deemed to have commenced upon the receipt by the Commission of any complaint, reference, or, as the case may be, application or upon its own knowledge or information reduced to writing by the Commission.

Explanation II: For the removal of doubts, it is hereby declared that the power of the Commission with respect to temporary injunction includes power to grant a temporary injunction without giving notice to the opposite party.

Section 12B

POWER OF THE COMMISSION TO AWARD COMPENSATION

(1) Where, as a result of the monopolistic or restrictive, or unfair, trade practice, carried on by any undertaking or any person, any loss or damage is caused to the Central Government, or any State Government or any trader or class of traders or any consumer, such Government or, as the case may be, trader or class of traders or consumer may, without prejudice to the right of such Government, trader or class of traders or consumer to institute a suit for the recovery of any compensation for the loss or damage so caused, make an application to the Commission for an order for the recovery from that undertaking or owner thereof or, as the case may be, from such person, of such amount as the Commission may determine as compensation for the loss or damage so caused.

(2) Where any loss or damage referred to in sub-section (1) is caused to numerous persons having the same interest, one or more of such persons may, with the permission of the Commission, make an application, under that sub-section, for and on behalf of, or for the benefit of, the persons so interested, and thereupon the provisions of rule 8 of Order I of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to the application before the Commission and the order of the Commission thereon.

(3) The Commission may, after an inquiry made into the allegations made in the application filed under sub-section (1), make an order directing the owner of the undertaking or other person to make payment, to the applicant, of the amount determined by it as realisable from the undertaking or the owner thereof, or, as the case may be, from the other person, as compensation for the loss or damage caused to the applicant by reason of any monopolistic or restrictive, or unfair, trade practice carried on by such undertaking or other person.

(4) Where a decree for the recovery of any amount as compensation for any loss or damage referred to in sub-section (1) has been passed by any court in favour of any person or persons referred to in sub-section (1), or, as the case may be, sub-section (2), the amount, if any, paid or recovered in pursuance of the order made by the Commission under sub-section (3) shall be set off against the amount payable under such decree and the decree shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), or any other law for the time being in force, be executable for the balance, if any, left after such set off.

Section 12C

ENFORCEMENT OF THE ORDER MADE BY THE COMMISSION UNDER SECTION 12A OR 12B

Every order made by the Commission under section 12A granting a temporary injunction or under section 12B directing the owner of an undertaking or other person to make payment of any amount, may be enforced by the Commission in the same manner as if it were a decree or order made by a court in an suit pending therein and it shall be lawful for the Commission to send, in the event of its inability to execute it, such order to the court within the local limits of whose jurisdiction, –

(a) in the case of an order against a company, the registered office of the company is situated, or

(b) in the case of an order against any other person, the place where the person concerned voluntarily resides or carries on business of personally works for gain, is situated, and thereupon the court to which the order is so sent shall execute the order as if it were a decree or order sent to it for execution

Section 13

ORDERS 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 13A

POWER OF THE COMMISSION TO CAUSE INVESTIGATION TO FIND OUT WHETHER OR NOT ORDERS MADE BY IT HAVE BEEN COMPLIED WITH

(1) The Commission may, if it has any reasonable cause to believe that any person has omitted or failed to comply with any order made by it under this Act or any obligation imposed on him by or under any order made by the Commission under this Act, authorise the Director General or any officer of the Commission to make an investigation into the matter and the Director General, or the officer so authorised, may, for the purpose of making such investigation, exercise all or any of the powers conferred on the Director General by section 11.

(2) On the conclusion of the investigation, the Director General, or, as the case may be, the officer so authorised, shall submit to the Commission a report of the investigation to enable the Commission to take such action in the matter as it may think fit.

Section 13B

POWER TO PUNISH FOR CONTEMPT

The Commission shall have, and exercise the same jurisdiction, powers and authority in respect of contempt of itself as a High Court has and may exercise and, for this purpose, the provisions of the Contempt of Courts Act, 1971 (70 of 1971) shall have effect subject to the modifications that –

(a) the reference therein to a High Court shall be construed as including a reference to the Commission;

(b) the references to the Advocate-General in section 15 of the said Act shall be construed as a reference to such Law Officer as the Central Government may, by notification 74 in the Official Gazette, specify in this behalf.

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. 79 ]

Section 22

ESTABLISHMENT OF NEW UNDERTAKINGS – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.

Section 22A

POWER TO EXEMPT – 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, AMALGAMTION 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;

(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.

[1] Section 27A

POWER OF THE CENTRAL GOVERNMENT TO DIRECT SEVERANCE OF INTER-CONNECTION BETWEEN UNDERTAKINGS

(1) [2] Notwithstanding anything contained in this Act or in any other law for the time being in force, the Commission may, –

(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 continuance of inter-connection of an undertaking (hereafter in this section referred to as the principal undertaking) with any other undertaking is detrimental to –

(a) the interests of the principal undertaking; or

(b) the future development of the principal undertaking; or

(d) the public interest.

inquire as to whether it is expedient in the public interest to make an order for the severance of such inter-connection on one or more of the grounds aforesaid, and the Commission may, after such hearings as it think fit, report to the Central Government its opinion thereon and shall, where it is of opinion that the severance of the inter-connection of the principal undertaking with any other undertaking ought to be made, include in its report a scheme with respect to such severance, providing therein for the matters specified in sub-section (2).

(2) Where, in any such report, the Commission recommends the severance of any such inter-connection, the scheme with respect thereto shall provide for the following matters, namely:-

(a) the manner in which, and the period within which, the severance of such inter-connection is to be effected;

(b) the appropriation or transfer of any share or other interest held by the owner in, or in relation to, the principal undertaking, in the other undertaking or the termination of any office or employment in such undertaking, which may be required for effecting the severance of such inter-connection;

(d) such incidental, consequential and supplemental matters, as may be necessary to secure the severance of such inter-connection.

(3) 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 severance of inter-connection between the undertakings, as far as may be, in accordance with the scheme included in the report of the Commission.

(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 severance of inter-connection between undertakings shall not be entitled to claim any compensation for such cesser.

Explanation: For the purposes of this section, “inter-connection” means inter-connection of an undertaking with any other undertaking in any manner specified in clause (g) of section 2.

[1] Ins by Act 30 of 1984, sec 22 (w.e.f. 1-8-1984)

[2] Subs by Act 58 of 1991, sec 10, for certain words (w.e.f. 27-9-1991)

[1] Section 27B

MANNER IN WHICH ORDER MADE UNDER SECTION 27 OR SECTION 27A SHALL BE CARRIED OUT

(1) Where in any report made by it, whether under section 27 or section 27A, the Commission recommends that the division of any trade of any undertaking or division of any undertaking or undertakings or of interconnected undertakings, or, as the case may be, the severance of interconnection between two or more undertakings, is to be effected by –

(a) the disinvestment by any person holding any share in the body corporate owning such undertaking or undertakings; or

(b) the sale of the whole or any part of such undertaking or undertakings, or, of any part of the assets thereof, the Central Government may, in its order under the said section 27 or section 27A, specify that such disinvestment of shares or the sale of the whole or part of the undertaking or undertakings or of such assets, as the case may be, shall be effected within such period and in such one or more of the following methods as may be specified in such order, namely:-

(i) by directing the person holding such shares to make a public offer for the sale of such number of shares held by him in the body corporate owning the undertaking or undertakings, as may be specified in the order; or

(ii) by directing the body corporate owning the undertaking to make further issue of equity capital to the members of the public except to the person who is directed to disinvest the shares held by him in such body corporate; or

(iii) by directing that the sale of the undertaking or any part thereof, or, as the case may be, of such assets, be made by public auction; or

(iv) by such other prescribed method as the Central Government may specify :

Provided that the Central Government may extend on its own motion or on the application of the person concerned and for sufficient cause, the period specified as aforesaid in any order made by it under section 27 or section 27A by another order.

(2) Every order of the Central Government referred to in sub-section (1), shall have effect notwithstanding anything contained elsewhere in this Act or in any other law for the time being in force or in the memorandum or articles of association of the body corporate owning the undertaking.

(3) Where any person who has been directed to do so by an order referred to in sub-section (1), omits or fails to disinvest any share or block of shares specified in the said order, the body corporate in which such shares are held shall not permit such person or his nominee or proxy to exercise any voting or other rights attaching to such share or block of shares.

[1] Ins by Act 3 of 1984, sec 22 (w.e.f. 1-8-1984)

Section 28

MATTERS TO BE CONSIDERED BY THE CNETRAL 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 WITHIN WHICH ACTION SHOULD BE TAKEN – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.

Section 30A

APPLICATION OF CHAPTER – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.

Section 30B

RESTRICTIONS ON THE ACQUISITION OF CERTAIN SHARES – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991

Section 30C

RESTRICTION ON TRANSFER OF SHARES – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.

Section 30D

RESTRICTION ON THE TRANSFER OF SHARES OF FOREIGN COMPANIES – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.

Section 30E

POWER OF THE CENTRAL GOVERNMENT TO DIRECT COMPANIES NOT TO GIVE EFFECT TO THE TRANSFER – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.

Section 30F

TIME WITHIN WHICH REFUSAL TO BE COMMUNICATED – OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F. 27-9-1991.

Section 30G

NOTHING IN SECTIONS 30B TO 30E TO APPLY TO GOVERNMENT COMPANIES ETC. – 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 [1]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:

[2]Provided that where the Commission receives [3]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 [3]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, [4]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 mischief which result or may result from such trade practice.

[4](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 mischief 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) [1]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 [5]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 [5]production,storage, supply or distribution of any goods or provision of any services;

(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;

[6](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.

[6](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.

[1] Subs by Act 30 of 1984, sec 24, for certain words (w.e.f. 1-8-1984)

[2] Added by Act 30 of 1984, sec 24 (w.e.f. 1-8-1984)

[3] Ins by Act 58 of 1991, sec 13 (w.e.f. 27-9-1991)

[4] Ins by Act 30 of 1984, sec 24 (w.e.f. 1-8-1984)

[5] Subs by Act 30 of 1984, sec 24, for “production, supply” (w.e.f. 1-8-1984)

[6] Ins by Act 30 of 1984, sec 24 (w.e.f. 1-8-1984)

[1] 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.

[1] Subs by Act 30 of 1984, sec 25, for section 32 (w.e.f. 1-8-1984)

Section 33

REGISTRABLE AGREEMENTS RELATING TO RESTRICTIVE TRADE PRACTICES

(1) [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;

[2](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; 99 ]

(k) any agreement not herein before referred to in this section which the Central Government may, [3]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 [4]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.

[1] Subs by Act 30 of 1984, sec 27, for certain words (w.e.f. 1-8-1984)

[2] Ins by Act 30 of 1984, sec 27 (w.e.f 1-8-1984)

[3] Subs by Act 30 of 1984, sec 2, for certain words (w.e.f. 1-8-1984)

[4] Subs by Act 30 of 1984, sec 27, for “production, supply” (w.e.f. 1-8-1984)

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, [1]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 [2]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 [3]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.

[1] Subs by Act 30 of 1984,sec 2, for “by notification in the Official Gazette” (w.e.f. 1-8-1984)

[2] Subs by Act 30 of 1984,sec 2, for “Registrar” (w.e.f. 1-8-1984)

[3] Subs by Act 30 of 1984,sec 29, for “ production, supply” (w.e.f. 1-8-1984)

Section 36

KEEPING THE REGISTER

(1) For the purpose of this Act, the [1]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 [1]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 [1]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 [1]Director General shall dispose of the matter in conformity with any general or special directions issued by the Commission in this behalf.

[1] Subs by Act 30 of 1984,sec 2, for “Registrar” (w.e.f. 1-8-1984)

Section 36A

DEFINITION OF UNFAIR TRADE PRACTICE

In this Part, unless the context otherwise requires “unfair trade practice” means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provisions of any services, [1]adopts any unfair method or unfair or deceptive practice including any of the following practices, namely: –

(1) the practice of making any statement, whether orally or in writing or by visible representation which, –

(i) falsely represents that the goods are of a particular standard, quality, [2]quantity, grade, composition, style or model;

(ii) falsely represents that the services are of a particular standard, quality or grade;

(iii) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods;

(iv) represents that the goods or services have sponsorships, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have;

(v) represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have;

(vi) makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services;

(vii) gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof :

Provided that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defence shall lie on the person raising such defence;

(viii) makes to the public a representation in a form that purports to be –

(i) a warranty or guarantee of a product or of any goods or services; or

(ii) a promise to replace, maintain or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result. if such purported warranty or guarantee or promise is materially misleading or if there is no reasonable prospect that such warranty, guarantee or promise will be carried out;

(ix) materially misleading the public concerning the price at which a product or like products or goods or services, have been, or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made;

(x) gives false or misleading facts disparaging the goods, services or trade of another person.

Explanation: For the purposes of clause (1), a statement that is –

(a) expressed on an article offered or displayed for sale, or on its wrapper or container; or

(b) expressed on anything attached to, inserted in, or accompanying, an article offered or displayed for sale, or on anything on which the article is mounted for display or sale; or

(c) contained in or on anything that is sold, sent, delivered, transmitted or in any other manner whatsoever made available to a member of the public, shall be deemed to be a statement made to the public by, and only by, the person who had caused the statement to be so expressed, made or contained;

(2) permits the publication of any advertisement whether in any newspaper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of the advertisement.

Explanation: For the purpose of clause (2), “bargain price” means –

(a) a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or

(b) a price that a person who reads, hears, or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like products are ordinarily sold;

(3) permits –

(a) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating the impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole.

(b) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest;

(4) permits the sale or supply of goods intended to be used, or are of a kind likely to be used by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by competent authority relating to performance, composition, contents, design, constructions, finishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods;

(5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale, or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost of those or other similar goods or services.

[1] Subs by Act 58 of 1991,sec 14, for certain words (w.r.e.f. 27-9-1991)

[2] Ins by Act 58 of 1991,sec 14 (w.r.e.f. 27-9-1991)

Section 36B

INQUIRY INTO UNFAIR TRADE PRACTICES BY COMMISSION

The Commission may inquire into any unfair trade practice, –

(a) upon receiving a complaint of facts which constitutes such practice [1] 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

(b) upon a reference made to it by the Central Government or a State Government; or

(d) upon its own knowledge or information.

[1] Subs by Act 74 of 1986, sec 5, for certain words (w.e.f. 1-6-1987)

[1]Section 36C

INVESTIGATION BY DIRECTOR GENERAL BEFORE AN ISSUE OF PROCESS IN CERTAIN CASES

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 36B, 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, for the purpose of satisfying itself that the matter requires to be inquired into.

[1] Subs by Act 58 of 1991, sec 15, for section 36C (w.r.e.f. 27-9-1991)

Section 36D

POWERS WHICH MAY BE EXERCISED BY THE COMMISSION INQUIRING INTO AN UNFAIR TRADE PRACTICE

(1) The Commission may inquire into any unfair trade practice 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, or to the interest of any consumer or consumers generally, it may, by order direct that –

(a) the practice shall be discontinued or shall not be repeated;

(b) any agreement relating to such unfair trade practice shall be void or shall stand modified in respect thereof in such manner as may be specified in the order;

[1](c) any information, statement or advertisement relating to such unfair trade practice shall be disclosed, issued or published, as the case may be, in such manner as may be specified in the order.

(2) The Commission may, instead of making any order under this section, permit any party to carry on any trade practice, if it so applies and takes such steps within the time specified by the Commission as may be necessary to ensure that the trade practice is no longer prejudicial to the public interest or to the interest of any consumer or consumers generally, and, in any such case, if the Commission is satisfied that necessary steps have been taken within the time so 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 any trade practice which is expressly authorised by any law for the time being in force.

[1] Ins by Act 58 of 1991,sec 16 (w.r.e.f. 27-9-1991)

Section 36E

POWER RELATING TO RESTRICTIVE TRADE PRACTICES MAY BE EXERCISED OR PERFORMED IN RELATION TO UNFAIR TRADE PRACTICE

Without prejudice to the provisions of section 12A, section 12B and section 36D, the Commission, Director General or any other person authorised in this behalf by the Commission or Director General, may exercise, or perform, in relation to any unfair trade practice, the same power of duty which it or he is empowered, or required, by or under this Act to exercise, or perform, in relation to a restrictive trade practice.

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 [1]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.

[1] Subs by Act 30 of 1984, sec 31, for “a monopolistic undertaking is indulging in restrictive trade practices”” (w.e.f. 1-8-1984)

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;

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 [1] 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.

[1] Subs by Act 30 of 1984,sec 33, for “trade mark by a licencee under any such licence” (w.e.f. 1-8-1984)

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 supply 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 [1]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.

[1] Subs by Act 30 of 1984,sec 2, for “Registrar” (w.e.f. 1-8-1984)

Section 42

POWER OF [1]DIRECTOR GENERAL TO OBTAIN INFORMATION

(1) If the [1]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 [1] Director General whether he is a party to any such agreement and, if so, to furnish to the [1]Director General such particulars of the agreement as may be specified in the requisition.

(2) The [1]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 [1]Director General such further documents or information in his possession or control as the [1]Director General 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 [1]Director General –

(a) order the person or, as the case may be, the association to furnish those particulars to the [1]Director General within such time as may be specified in the order, or

(b) authorise the [1]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 willful, 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.

[1] Subs by Act 30 of 1984,sec 2, for “Registrar” (w.e.f. 1-8-1984)

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, [1]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.

[1] Subs by Act 30 of 1984, sec 34, for “ call upon any undertaking” (w.e.f. 1-8-1984)

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 [1]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.

[1] Subs by Act 30 of 1984, sec 35, for “ or restrictive trade practice” (w.e.f. 1-8-1984)

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 [1]with imprisonment for a term which may extend to five years, or with fine which may extend to Rs. one lakh, [1]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.

[1] Ins by Act 30 of 1984, sec 37 (w.e.f. 1-8-1984)

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 [1]with imprisonment for a term which may extend to three years, or with fine which may extend to five thousand rupees [1]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.

[1] Ins by Act 30 of 1984, sec 39 (w.e.f. 1-8-1984)

[1]Section 48A

PENALTY FOR CONTRAVENTION OF ORDER MADE UNDER SECTION 27B OR FOR POSSESSION OF PROPERTY SOLD TO ANY PERSON UNDER SECTION 27B

Any person or body corporate who or which, –

(a) being required by any order of the Central Government referred to in sub-section (1) of section 27B to effect disinvestment of any shares or sale of the whole or any part of any undertaking or undertakings by any method referred to in that sub-section, omits or fails to do so; or

(b) having in his possession, custody or control any property or assets or any part thereof which have been sold to any person in pursuance of an order of the Central Government referred to in sub-section (1) of section 27B (hereinafter in this section referred to as the “purchaser”), wrongfully withholds such property, assets or part thereof from the purchaser;

(c) wrongfully obtains possession of any property, assets or any part thereof or retains any property, assets or any part thereof, which have been sole in pursuance of an order of the Central Government referred to in sub-section (1) of section 27B; or

(d) withholds or fails to furnish to the purchaser, any document in his possession, custody or control relating to the property, or any part or assets thereof, which have been sold in pursuance of an order of the Central Government referred to in sub-section (1) of section 27B; or

(e) fails to deliver to the purchaser the property, or any part or assets thereof which have been sold in pursuance of an order of the Central Government referred to in sub-section (1) of section 27B, or any books or account, registers and other documents in his possession, custody or control relating to such property, or nay part or assets thereof; or

(f) wrongfully removes or destroys any property or assets which have been sold in pursuance of an order of the Central Government referred to in sub-section (1) of section 27B; or

(g) prefers any claim, in relation to the property, or any part or assets thereof which have been sold in pursuance of an order of the Central Government referred to in sub-section (1) of section 27B, which he knows, or has reason to believe, to be false or grossly inaccurate, shall be punishable with imprisonment for a term which may extend to two years and also with fine which may extend to ten thousand rupees.

[1] Ins by Act 30 of 1984, sec 40 (w.e.f. 1-8-1984)

[1]Section 48B

PENALTY FOR CONTRAVENTION OF SECTION 27B

(1) Every person who exercises any voting right, in respect of any share in contravention of any order of the Central Government referred to in sub-section (1) of section 27B shall be punishable with imprisonment for a term which may extend to five years, and shall also be liable to fine.

(2) If any company gives effect to any voting or other right exercised in relation to any share held in contravention of an order or the Central Government referred to in sub-section (1) of section 27B, the company shall be Punishable with fine which may extend to five thousand rupees and every officer of the company who is in default 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.

[1] Ins by Act 30 of 1984, sec 40 (w.e.f. 1-8-1984) and subs by Act 58 of 1991, sec 21 (w.r.e.f. 27-9-1991)

[1]Section 48C

PENALTY FOR CONTRAVENTION OF ORDER MADE BY COMMISSION RELATING TO UNFAIR TRADE PRACTICES

If any person contravenes any order made by the Commission under section 36D, he shall be punishable with imprisonment for a term [2]which shall not be less than six months but which may extend to three years and with fine which may extend to ten lakh rupees:

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 section.

[1] Ins by Act 30 of 1984, sec 40 (w.e.f. 1-8-1984)

[2] Subs by Act 58 of 1991,sec 22, for certain words (w.r.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, [1]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) willfully 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.

[1] Subs by Act 30 of 1984,sec 41, for “to furnish any information” (w.e.f. 1-8-1984)

Section 50

PENALTY FOR OFFENCES IN RELATION TO ORDERS UNDER THE ACT

[1](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.

[1] Subs by Act 30 of 1984,sec 42 (w.e.f. 1-8-1984) and again subs. By Act 58 of 1991, sec 23 for sub-sections (1) and (2) (w.r.e.f. 27-9-1991)

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 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.

[1]Section 52A

PENALTY FOR CONTRAVENTION OF ANY CONDITION OR RESTRICTION, ETC.

If any person contravenes, without any reasonable excuse, any condition or restriction subject to which any approval, sanction, direction or exemption in relation to any matter has been accorded, given, made or granted under this Act, he shall be punishable with fine which may extend to one thousand rupees and where the contravention is a continuing one, with a further fine which may extend to one hundred rupees for every day, after the first, during which such contravention continues.

[1] Ins by Act 30 of 1984, sec 43 (w.e.f. 1-8-1984)

Section 52B

PENALTY FOR MAKING FALSE STATEMENT IN APPLICATION, RETURN, ETC.

If in any application, return, report, certificate, balance sheet, prospectus, statement or other document made, submitted, furnished or produced for the purpose of any provision of this Act, any person makes a statement, –

(a) which is false in any material particular, knowing it to be false, or

(b) which omits to state any material fact, knowing it to be material, he shall be punishable with imprisonment for a term which may extend to two years and shall also be liable to fine.

Section 54

POWER OF CENTRAL GOVERNMENT TO IMPOSE CONDITIONS, LIMITATIONS AND RESTRICTIONS ON APPROVALS, ETC., GIVEN UNDER THE ACT

(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.

[ 136 (2) Omitted by the MRTP (Amendment) Act, 1991, section 24, w.e.f. 27-9-1991. 136 ]

(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 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 55

APPEALS

Any person aggrieved by [1]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 [2]section 12A or [3]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).

[1] Subs by Act 30 of 1984,sec 44, for “any order made by the Central Government under Chapter III” (w.e.f. 1-8-1984)

[2] Ins by Act 58 of 1991, sec 25 (w.r.e.f. 27-9-1991)

[3] Subs by Act 30 of 1984,sec 44, for “section 13 or section 37” (w.e.f. 1-8-1984)

Section 56

JURISDICTION OF COURTS TO TRY OFFENCES

No Court inferior to that of a [1]Court of Session shall try any offence under this Act.

[1] Subs by Act 30 of 1984, sec 45, for “Presidency Magistrate or a Magistrate of the first class” (w.e.f. 1-8-1984)

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.

[1](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.

[1] Ins by Act 30 of 1984, sec 47 (w.e.f. 1-8-1984)

Section 61

POWER OF THE CENTRAL GOVERNMENT TO REQUIRE THE COMMISSIONTO 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 [1]restrictive or unfair trade practices or concentration of economic power to the common detriment.

[1] Subs by Act 30 of 1984,sec 48, for “restrictive trade practices” (w.e.f. 1-8-1984)

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, [1]Director General, and every member of the staff of the Commission, and of the 1Director 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 [1]Director General or any member of the staff of the [2]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.

[1] Subs by Act 30 of 1984,sec 2, for “Director and the Registrar” (w.e.f. 1-8-1984)

[2] Subs by Act 30 of 1984,sec 2, for “Director, the Registrar” (w.e.f. 1-8-1984)

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 [1]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 [1] 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 [1]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.

[1] Subs by Act 30 of 1984,sec 2, for “Registrar” (w.e.f. 1-8-1984)

Section 66

POWER TO MAKE REGULATIONS

(1) The Commission [1]may [2]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](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.

[1] Subs by Act 20 of 1983, sec 2 and Schedule for “may make regulations” (w.e.f. 15-3-1984)

[2] Subs by Act 30 of 1984, sec 2, for “by notification in the Official Gazette” (w.e.f. 1-8-1984)

[3] Ins by Act 20 of 1983,sec 2 and Schedule (w.e.f. 15-3-1984)

Section 67

POWER TO MAKE RULES

(1) The Central Government may, [1]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 therefore;

(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.

[3](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 traveling 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.

[1] Subs by Act 30 of 1984, sec 2, for “by notification in the Official Gazette” (w.e.f. 1-8-1984)

[2] Subs by Act 30 of 1984, sec 2, for “Registrar” (w.e.f. 1-8-1984)

[3] Ins by Act 30 of 1984, sec 50 (w.e.f 1-8-1984)

Schedule – Part I

THE SCHEDULE

[See section 30C]

[ OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F.27-9-1991. ]

Schedule – Part II

THE SCHEDULE

[See section 30C]

[ OMITTED BY THE MRTP (AMENDMENT) ACT, 1991, W.E.F 27-9-1991. ]

URL:http://www.indianrailways.gov.in/RPF/Files/law/BareActs/MRTP%20Act.doc#a

TABLE OF CONTENTS

CHAPTER I – PRELIMINARY

CHAPTER III – CONCENTRATION OF ECONOMIC POWER

CHAPTER VI – CONTROL OF CERTAIN RESTRICTIVE TRADE PRACTICES

CHAPTER VII – POWER TO OBTAIN INFORMATION AND APPOINT INSPECTORS

CHAPTER VIII – OFFENCES AND PENALTIES

CHAPTER IX – MISCELLANEOUS

Section 1

Section 5

Section 14

Section 19

Section 27

PENALTY FOR FAILURE TO REGISTER AGREEMENTS

PENALTY FOR CONTRAVENTION OF SECTION 27B

Section 55

Section 58

Section 63

MEMBERS, ETC., TO BE PUBLIC SERVANTS