SUPREME COURT OF INDIA
A.M Ahmadi, C.J.I., N.P.Singh, S.Mohan, JJ.
Voltas Limited
Versus
Union Of India
Case No. : 2252 of 1994, 4181 , 4186 , 4431 , 4438 , 5667 of
Date of Decision : 2/7/95
Advocates Appeared: Kaul Sanjay Kishan : Mishra D.N.
Monopolies and Restrictive Trade PRACTICES Act, 1969 - Section 55 - Evidence produced by the parties - Agreements with large number of companies – Jurisdiction - Appellant had entered into agreements with large number of companies, who are respondents in different appeals, in respect of distribution of different machineries and equipments within different territories of India - Companies, who are respondents to the different appeals, have been manufacturing different types of machines and instruments, which under the terms of the agreements are to be distributed by the appellant as Marketing Company - Appellant has been appointed as buyer sole importer terms and conditions mentioned in different agreements – Held, Again in the case of Mahindra and Mahindra Ltd. v. Union of India it was said that after the Commission is satisfied in respect of restrictive trade practices then it has to proceed to consider whether any of gateways provided in Section 38(1 exist so that the trade practice, though found restrictive, is deemed not to be prejudicial to public interest - In the light of what has been said above, if the order of the Commission is examined, it shall appear that the Commission has set out briefly - Then the Commission has pointed out that the Director General in support of his case has tendered the various agreements - Thereafter reference has been made to the affidavits filed on behalf of the appellant, and other documents - Real discussion is only in order under appeal which is as follows – Court have gone through voluminous records and pleadings pertaining to these enquiries, evidence produced by the parties, oral arguments, written submissions and cases referred to by the parties and are of the view that no case for gateways under Section 38 as pleaded has been made out by Voltas in these proceedings - Likewise the manufacturer Limited in RTF Enquiry No. 483 of 1987 has also failed to make out any case for gateways – Therefore we hold that the respondents have indulged into the restrictive trade practices as alleged in the Notice of Enquiry, and those practices are prejudicial to the public interest in each of the 15 enquiries - According to us, the Commission was required to go deeper into the matter and to record findings in respect of different agreements whether the objectionable clauses of the registered agreements were prejudicial to the public interest. It need not be impressed that any finding recorded by the Commission under Section 37 and direction given in terms of clauses of Section 37 has a far-reaching effect. As such every aspect of the matter is required to be examined in light of the provisions of S. 37 and 38 of the Act before an order to cease and desist is passed by the Commission – Appeal allowed
Judgment
N.P. SINGH, J.
(1) THESE appeals have been filed under Section 55 of the Monopolies and Restrictive Trade PRACTICES Act, 1969 (hereinafter referred to as " "the Act") against the judgment and order of the Monopolies and Restrictive Trade PRACTICES Commission (hereinafter referred to as "the Commission").
(2) THE appellant had entered into agreements with large number of companies, who are respondents in different appeals, in respect of distribution of different machineries and equipments within different territories of India. The companies, who are respondents to the different appeals, have been manufacturing different types of machines and instruments, which under the terms of the agreements are to be distributed by the appellant as the Marketing Company. The appellant has been appointed as buyer (sole importer) on the terms and conditions mentioned in different agreements.
(3) ON 26/11/1986, notices were issued under Section 10(a)(iii) read with Section 37 of the Act, informing the appellant that the agreements between the appellant and the different companies, some of which have their head offices in foreign countries contain conditions which amount to restrictive trade pRACTICES under clauses (a) and (c) of Section 33(1 of the Act. In the notices aforesaid,the terms and conditions in different agreements which are alleged to be violative of Section 33(l)(a) and (c) of the Act were reproduced. Pursuant to the notices aforesaid, show cause was filed in different cases initiated by the Commission against the appellant. Documents and affidavits were also filed on behalf of the appellant in support of its stand that none of the agreements referred to in the notices issued to the appellant related to restrictive trade pRACTICES, calling for any action under the Act. The Commission, however, by the impugned judgment andorder directed the appellant in respect of each of the 15 enquiries to discontinue the restrictive trade pRACTICES as mentioned in the Notice of Enquiry, and not to repeat the same in future. It was also directed that the objectionable clauses, as mentioned in the notices be deleted from the respective agreements, within 8 weeks of the receipt of the said order.
(4) ALL the appeals were heard together, since the controversy, which has been raised, is more or less similar in all the appeals, and as such facts are being referred to from Civil No. 2252 of 1994, which was heard as the leading case. It appears that the agreement in that case had been entered into between the appellant and Respondent 4. M/s Societe Genevoise D, Instruments De Physique, Geneve through its secretary, on 29/1 1/1956. The Director General of Investigation and Registration (hereinafter referred to as the DG) took objection, in respect of three of the clauses of the agreement and on his application being filed before the Commission, notice was issued to the appellant on 26/11/1986 saying that the following terms of the agreement amounted to restrictive trade pRACTICES, within the meaning of the Act:
"2. The Buyer shall not sell the goods of the Seller to any person who is not residing or carrying on business within the Territory nor to any person residing or carrying on business within the Territory for the purpose of resale by such person outside the Territory. 3. The Buyer shall use his best endeavours to promote the interests of the Seller and specifically shall not deal in or sell goods which could compete with those of the Seller. 6. For the consideration aforesaid the Seller agrees not to sell any goods as mentioned before to any individual or firm within the Territory other than the Buyer and all enquiries and orders received by the Seller from the Territory shall be referred to the Buyer. The Seller shall further not quote for nor deliver his goods to any firm outside the Territory for import into the Territory except with the previous consent of the Buyer and at terms agreed upon
J.K.Cotton Spg. and Wvg. Mills Ltd. v. Union of India
M. Venugopal v. Divisional Manager, LIC
distinguished : Tata Engg. and Locomotive Co. Ltd. v. Registrar of the Restrictive Trade Agreement
Tata Engg. and Locomotive Co. Ltd. v. Registrar of the Restrictive Trade Agreement
The main legal point established in the judgment is the binding effect of the settlement between the parties, the waiver of the right to seek re-employment by the workmen, and the entitlement of the ....
A lockout is justified if it is declared in response to an illegal strike or a strike that is in breach of a settlement or award.
The combination of eyewitness testimonies, recovery of the weapon used, and forensic examination results can establish guilt in criminal cases, even based on circumstantial evidence.
The conviction of an accused person under Section 27(3) of the Arms Act is not permissible in law if the accused is also charged with committing murder under Section 302 of the Indian Penal Code.
The court can enhance compensation based on the deceased's income and family dependency, and adjust the multiplier used by the Tribunal if found unjustified.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.