IN THE HIGH COURT OF BOMBAY
Lodha R.M. Bhosale D.B., JJ.
Mumbai Bidi Tambaku Vyapari Sangh others .... Petitioners.
Versus
Union of India another.... Respondents.
Writ Petition No. 3710 of 1990, decided on 21-11-2002.
Advocates appeared :
Ms. Neeta Karnik, for petitioners.
H.V. Mehta, for respondent No. 1.
2. The first petitioner is a trade union registered under Trade Unions Act, 1926. It has as its members the small retailers selling pre-packaged goods in Bombay. Petitioner No. 2 is an unregistered association which has as its members small retailers including the members of petitioner No. 1. Petitioner No. 3 is a small retail trader and a member of petitioner No. 1. He is inter alia engaged in retail selling of pre-packaged materials namely cigarettes, soaps, toiletery items, biscuits etc. According to the petitioners the retail traders such as petitioner No. 3, sell goods in pre-packaged form which are manufactured all over India. They are all small retail traders whose turnover is always very low and they earn their profits from the commission that they charge on the sales.
3. The petitioners have filed this petition in the representative capacity seeking leave under Order 1, Rule 8 of the Code of Civil Procedure on their behalf and on behalf of persons who have similar interest.
4. It is the case of the petitioners that the turnover of the retail traders who are members of the 1st petitioner association is approximately Rs. 600/- Rs. 700/-, per day. On an average the commission of 10% profits work out to Rs. 60/--Rs. 70/- per day and on a 26 days basis it works out to Rs. 1820/- per month. According to the petitioners the actual commission for similar retailers is at times almost nil. The petitioners have quoted two instances so as to support the contention that at times the commission is almost nil. We do not deem it necessary to reproduce those instances for adjudicating the issue involved in the present writ petition. In short, the petitioners contention is that the difference between the purchase price for the members of their association of pre-packaged commodities and the retail sale price which has to be published on various brands of pre-packaged commodities like cigarettes, biscuits does not fetch the commission or more than 10%. It is, therefore, unreasonable to impose a maximum retail price which does not allow the retailer to have atleast 15% to 20% commission on their sales. The petitioners have also demonstrated in the writ petition, the efforts made by them in order to get more commission on the retail sale price of pre-packaged commodities. According to the petitioners as a result of their efforts, they were, in fact getting 15% to 20% commission which made their business economically viable. However, after the 1990 amendment to the Rules, by which the restrictions have been imposed on retail dealers including manufacturers, packers and wholesale dealers, that they shall not make any sale of any commodity in packed form at the price exceeding the retail sale price thereon, the things changed and the profit margin of the members of petitioners association started vitally affecting. According to the petitioners for no fault of theirs and because of the intense competition of various manufacturers who control the retail pri
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