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MONOPOLIES AND RESTRICTIVE TRADE
PRACTICES COMMISSION, NEW DELHI
Dr. S. Chakravarthy & Mr. S.K. Parthasarathy, Members
R.P.S. VARMA & ANR.—Complainants
versus
VICE-CHAIRMAN, DELHI DEVELOPMENT AUTHORITY & ANR.—Respondents
Unfair Trade Practices Enquiry Nos. 73 of 1995 and 74 of 1995—Decided on 18.2.1999

Advocates:
Counsel for the Parties :
For the Complainants :Mr. R.P.S. Verma, Advocate.
For the Respondents:Mr. Apoorv Lal, Advocate.

High Court judgment under Article 226 binding on Commission. SLP dismissal in limine does not affect binding nature. High Court finding on land cost revision final.

Headnote:

REVIEW APPLICATION - MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969 - SECTION 13(2) - REVIEW OF ORDER DISCHARGING NOTICE OF ENQUIRY - BINDING NATURE OF HIGH COURT JUDGMENT - PRICING OF FLATS - APPLICABILITY OF SUPREME COURT JUDGMENT - INTERIM STAY - DIRECTIONS TO RESPONDENT.

Fact of the Case:

Complainants applied for flats under DDA's scheme. DDA delayed allotment and asked for enhanced price. Complainants alleged restrictive and unfair trade practices. Commission discharged Notice of Enquiry relying on Delhi High Court judgment.

Finding of the Court:

Commission bound by Delhi High Court judgment. SLP dismissal in limine not relevant. High Court finding that revision of land cost was neither illegal nor arbitrary is final. Supreme Court judgment on pricing not applicable as flats allotted in 1993.

Issues: Whether Commission bound by High Court judgment under Article 226. Whether SLP dismissal in limine affects High Court judgment's binding nature. Whether High Court finding on land cost revision is final. Whether Supreme Court judgment on pricing applicable.

Ratio Decidendi: Full Bench of Commission held High Court ruling under Article 226 binding. SLP dismissal in limine does not affect binding nature. High Court finding on land cost revision final. Supreme Court judgment on pricing not applicable as flats allotted in 1993.

Final Decision: Review applications dismissed.

ORDER

Mr. S.K. Parthasarathy, Member—This order disposes of the review applications filed by the complainants under Section 13(2) of the Monopolies and Restrictive Trade Practices Act, 1969 (for brief the Act) in the above two cases seeking a review of the order passed by the Commission on 17.6.1998.

2. The brief facts of the case leading to the passing of the order dated 17.6.1998 may be summarised as follows :

The Delhi Development Authority (DDA) the respondent in these cases, offered built-up flats under a scheme "Registration Scheme — New Pattern 1979". Both the complainants had applied for flats. The scheme originally envisaged that the estimated cost of the flat would be Rs. 42,000/-. Both of them were informed in 1991 that they were allotted a flat each and in 1993 they were asked to deposit the enhanced amounts. The complainant alleged that the action of the DDA in delaying the allotment of flat and asking for enhanced price for them amounted to both restrictive and unfair trade practices.

The Commission passed an order on 17.6.1998 discharging the Notice of Enquiry (NOE) issued against the respondent. While passing this order the Commission relied on the decision of the Full Bench of the Hon'ble High Court of Delhi in its order dated 3rd February, 1995 in CWP No. 1121/1991.

3. The complainants in their review applications have made the following points :

(1) The Commission is not bound to follow the judgment of High Courts in the matter covered by the MRTP Act, 1969.

(2) The judgment of the Hon'ble High Court of Delhi on which the Commission relied had given contradictory findings. According to them, since the High Court had held that it could not interfere in the matter of pricing/costing of flats including escalation in cost of land under Article 226 of the Constitution, their finding that the revision of cost of land by DDA was neither illegal nor arbitrary "is not correct". They have further averred that this finding at best might be termed obiter dictum and not a decision of the matter to have binding force.

(3) The SLP filed against the judgment of the Hon'ble High Court of Delhi dismissed by the Hon'ble Supreme Court in limine and therefore the finding of the High Court has not been affirmed by the Supreme Court.

(4) As per the judgment dated 23.9.1994 in DDA v. Pushpender Kumar Jain, 1994 (6) SCC 292, the DDA should have charged the complainant the prevalent price in 1991 as the allotment of the flat to the complainant was intimated to them in July and August, 1991 respectively.

4. The respondent did not avail of the opportunity given to it to file a reply to the review applications nor was the respondent represented when we gave a hearing to the complainants.

5. We have given careful consideration to the points made by the complainants in their review applications. A Full Bench of the Commission in its order dated 15.5.1998 in the matter of Director General (I & R) v. Holy Angel School, reported as 1998 CTJ (MRTPC), has pronounced that a ruling of High Court under Article 226 of the Constitution is binding to this Commission. In the light of this we are bound by the finding of the Hon'ble High Court of Delhi contained in its judgment in CWP 1121/1991 delivered on 3rd February, 1995. The contention of the complainants that the SLP filed against the judgment of the High Court of Delhi was dismissed by the Hon'ble Supreme Court in limine is of no relevance as the ruling of the High Court even if not confirmed by the Hon'ble Supreme Court is binding to the Commission.

6. The complainants further argued that the judgment of the High Court of Delhi was under Article 226 of the Constitution and it had come to the conclusion that it could not interfere in the matter of pricing/costing of the flats under that article. In view of this, according to them, the Commission could look into the pricing of flats under its own powers. We do not agree with this contention. The Hon'ble High Court of Delhi while delivering the judgment






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