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1990 Supreme(SC) 666

SUPREME COURT OF INDIA
Ranganath Misra, CJI., Kuldip Singh, J.
M.L.Sachdev
Versus
Union Of India
Case No., 172 of 1990
Date of Decision, 11/5/90
Advocates Appeared: Desai Ashok, Parikh Sanjay, Subhashini A.

Advocates:
A.Subhashini, ASHOK DESAI, Sanjay Parikh

Headnote:

Constitution Of India,1950 - Monopolies and Restrictive Trade Practices Act, 1969 – Section, 5 - Punishment - Appointed and Commission - Application Article filed as public interest litigation for direction to Union of India to fill up posts of Chairman and Members Commission Monopolies and Restrictive Trade Practices Act - Notice was issued on this petition on service had been effected before - Writ petition was adjourned to enable Union of India file its counter affidavit - Such affidavit has however not been filed till today - When matter was listed yesterday court were told that if matter be called today statement could be made as to when posts shall be filled up - Counsel for Union of India says that within months time these appointments are likely to be made – Held, Court have not been able to find any extenuating circumstances in affidavit of condemner in Ministry of Industries and since he does not plead ignorance direction of this court he should be imputed with knowledge of consequences of failure of compliance - Court are not in position to accept submission of learned Solicitor General that in matter compliance of order of court beyond time indicated fact that some attempt was made to reconstitute Commission constitutes an extenuating circumstance - Was obligation of Union of India to constitute Commission in manner prescribed of Act and when it failed to do so this court had given direction to comply with requirements of law - Conduct of Union of India in these circumstances must be taken as one of indifference to courts direction - Therefore no conclusion other than one holding respondent guilty of contempt can be reached - Senior administrative officer and should have taken appropriate care to strictly comply with direction of this court - This court on an earlier occasion pointed out that courts constitute an inbuilt mechanism within framework Constitution for purposes of social audit and to ensure compliance of Rule of Law - In enforcing compliance of orders of this court and in punishing for lapses in matter of compliance by invoking power of contempt this court seeks only to ensure that majesty of this institution may not be lowered and functional utility of constitutional edifice may not be rendered ineffective - This court expects Union of India to exhibit most ideal conduct for others to emulate – Order accordingly

Judgment

RANGANATH MISRA, C.J.I.

(1) A three Judge bench of this court in Writ Petition No. 297 of 1990 made an order on 20/04/1990, to the following effect:

THIS is an application under Article 32 filed as a public interest litigation for a direction to the Union of India to fill up the posts of Chairman and Members of the Commission under the Monopolies and Restrictive Trade Practices Act, 1969. Notice was issued on this petition on 28/02/1990 and service had been effected before 26/03/1990. The writ petition was adjourned on 26/03/1990 till 9/04/1990 to enable Union of India to file its counter-affidavit. Such affidavit has, however, not been filed till today. When the matter was listed yesterday we were told that if the matter be called today a statement could be made as to when the posts shall be filled up. Counsel for the Union of India says that within a months time these appointments are likely to be made.

IT is not disputed that the Chairman of the Commission died in harness on 11/12/1989. One of its members retired on 31/12/1989. The third member has retired on 28/02/1990. Mr Manchanda, the other member who was acting Chairman retired on 22/03/1990. It is said that the term of one member only has been extended after notice was issued in the case.

UNDER the Act the Commission becomes functional with a bench of two members and in view of the fact that it has only one existing member for some time, the Commission has not been functioning.

IT is not disputed that the Commission is the kingpin for the functioning of the MRTP Act and is the statutory mechanism for enforcing the law brought about for public benefit. Its provisions are intended to provide protection to consumers and control monopolies. In these circumstances we have not been able to appreciate why the Commission has been rendered non-functional by keeping the various posts vacant. We direct that the Commission shall be appropriately constituted within three weeks from today. The writ petition is disposed of accordingly. No costs.

At the instance of the Union of India the learned Vacation Judge on 25/05/1990 extended the time to comply with the direction given in the writ petition till 7/07/1990.

(2) ON the allegation that the order of this court of 20/04/1990,was not complied with by 7/07/1990, a petition for contempt was filed in this court on 7/08/1990. On 21/09/1990 notice was issued on the petition and on 12/10/1990 the following order was made:

"ISSUE notice on the contempt petition to Mr A.N. Verma, secretary of Industry and Company Affairs to appear and show cause on 22/10/1990 why he should not be convicted for contempt of court for non-compliance of the courts order dated 20/04/1990. We are satisfied that contempt has been committed, therefore, no preliminary notice has been issued."

(3) AN affidavit was filed on 22/10/1990 by the contemner Shri AN. Verma, secretary, Department of Company Affairs, Ministry of Industries of the Union government where it was averred that certain steps were taken for the reconstitution of the Monopolies and Restrictive Trade Practices Commission set up under the Monopolies and Restrictive Trade Practices Act, 1969 (hereinafter referred to as the Act) but the appointment of the Chairman could not be finalised as the Judge to whom the offer had been made ultimately declined. It was pleaded:

"IT will be seen from the above facts and circumstances that the deponent did his best to obtain orders of appointments of Chairman and the Members of the MRTP Commission as per directions of this Honble court, but the appointments could not be made despite all efforts and due diligence. There has also been no wilful negligence or intention to disobey the orders of this Honble court in the matter.

THE deponent accordingly seeks the indulgence of this Honble court and submits that in special circumstances of the case, the deponent or the respondent may not be held guilty of disobedience










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