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MRTP Act, 1969

MRTP Act, 1969

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Published by 16pankaj

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Categories:Business/Law, Finance
Published by: 16pankaj on Sep 22, 2009
Copyright:Attribution Non-commercial


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4.1.1The MRTP Act,1969 has its genesis inthe Directive Principles of State Policy embodiedin the Constitution of India. Clauses (b) and(c) of Article 39 of the Constitution lay downthat the State shall direct its policy towardsensuring:(i)that the ownership and control ofmaterial resources of the community areso distributed as best to sub-serve thecommon good; and(ii)that the operation of the economicsystem does not result in theconcentration of wealth and means ofproduction to the common detriment.
Provisions Relating to Monopolistic,Restrictive and Unfair Trade Practices
4.2.1Section 10 of the MRTP Act,1969empowers the MRTP Commission to enquireinto monopolistic or restrictive trade practicesupon a reference from the Central Governmentor upon its own knowledge or on information.The MRTP Act,1969 also provides forappointment of a Director General ofInvestigation and Registration for makinginvestigations for the purpose of enquiries bythe MRTP Commission and for maintenance ofregister of agreements relating to restrictivetrade practices.4.2.2The MRTP Commission receivescomplaints both from registered consumer andtrade associations and also from individualseither directly or through various GovernmentDepartments. Complaints regarding RestrictiveTrade Practices or Unfair Trade Practices froman association are required to be referred tothe Director General of Investigation andRegistration for conducting preliminaryinvestigation in terms of Sections 11 and 36Cof the MRTP Act,1969 and Regulation 119 ofthe MRTP Commission Regulations, 1974. TheCommission can also order a preliminaryinvestigation by the Director General ofInvestigation and Registration when a referenceon a restrictive trade practice is received fromthe Central/ State Government, or whenCommission’s own knowledge warrants apreliminary investigation. Enquiries areinstituted by the Commission under relevantSections of the MRTP Act,1969 after the DirectorGeneral of Investigation and Registration hascompleted the preliminary investigation andas a result of the findings, submits anapplication to the Commission for an enquiry.
Monopolistic Trade Practices
4.3.1 Seven enquiries under Section 10(b)were pending with the MRTP Commission atthe beginning of the year 2004, while no freshinquiry was instituted during the period April,2004- December, 2004. Two enquiries weredisposed of during the period and 5 enquiries
were pending as on 31.12.2004.
4.4.1289 enquiries, including 268 broughtforward from the previous year, wereconsidered during January 2004-December2004. 19 enquiries were disposed of duringthe said period and the remaining 270enquiries were pending with the Commissionas on 31
December 2004.
Under Section 10(a)(ii)
4.5.1Neither any enquiry was broughtforward from the previous year nor any enquirywas instituted under this Section during theyear.
Under Section 10(a)(iii)
4.6.1 42 enquiries carried forward from theprevious year were taken up by the Commissionduring January 2004 to December 2004. Tenenquiries were disposed of during the periodand the remaining 32 were pending with theCommission as on 31
December 2004.
Under Section 10(a)(iv)
4.7.165 enquiries were brought forwardfrom the previous year and 2 fresh enquirywere instituted by the Commission during theyear from January 2004 to December 2004.Two enquiries were disposed of during thesaid period and 65 enquiries were pendingwith the Commission as on 31
December 2004.
4.8.1Provisions relating to Unfair TradePractices were incorporated in the MRTPAct,1969 in 1984. Unfair Trade Practices havebeen defined in Section 36A as trade practiceswhich for the purpose of promoting the sale,use or supply of any goods or for provision ofany services, adopt one or more of the practicesmentioned therein and thereby cause loss orinjury to the consumers of such goods orservices, whether by eliminating or restrictingcompetition or otherwise.
Under Section 36B(a)
4.9.1432 enquiries including 352 enquiriescarried forward from the previous year wereconsidered by the Commission during January,2004 - December 2004. Of these, 34enquiries were disposed of and the remaining398 enquiries were pending as on 31
December 2004.
Under Section 36B(b)
4.10.1Neither any enquiry under Section 36B(b) of the MRTP Act , 1984 was initiated norany enquiry was brought forward duringJanuary, 2004- December, 2004.
Under Section 36B(c)
4.11.18 enquiries brought forward from theprevious year were taken up by the Commissionduring the period January, 2004 - December2004. All the 8 enquiries were disposed ofduring the period.
Under Section 36B(d)
4.12.1179 enquiries, including 173 broughtforward from the previous year, were taken upby the Commission during January,2004 -December 2004. Nine enquiries were disposedof and 170 enquiries were pending with theCommission as on 31
December 2004.
Temporary Injunctions
4.13.1 Besides 91 applications pendingunder Section 12A with the MRTP Commissionas on 1
April, 2004, 80 applications werereceived by the Commission during the periodApril, 2004 -December 2004. Thus out of 171applications, 54 were disposed of during thisperiod. Remaining 117 applications underSection 12A were pending with the Commissionas on 31
December 2004.
Award of Compensation
4.14.1During the period April,2004 -December 2004, 1231 applications underSection 12B including 1160 applicationsbrought forward from the previous year wereconsidered by the Commission. Of these, 67applications were disposed of by theCommission during the period and theremaining 1164 applications were pendingas on 31
December, 2004.

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