Law: Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970

Section: 3

(a) Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance (V of 1970) ---Preamble-Object of Ordinance. (b) Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance (V of 1970)--Ss. 3, 4, 11 & 2--Object, scope and application of Ss. 3, 4, 11 & 12. Section 3 of the Ordinance (V of 1970), inter alia, declares that there shall be no undue concentration of economic power and section 4 states the circumstances under which undue concentration of economic power shall be deemed in law to have been brought about, maintained or conti­nued. Under section 4, undue concentration of economic power is inter alia, deemed present if there is an undertaking, the total value of whose assets is more than five crores of rupees, and which is either (i) not owned by a public limited company or (ii) is owned by a public limited company in which any individual holds or controls shares carrying more than 50 % of the voting power in that undertaking. Where the authority is satisfied that there is or is likely to be undue concentration of economic power within the meaning of section 3 and that action is necessary in the public interest, it can make one or more of such orders specified in section 12 as it may deem appropriate, but, before making any order in that respect, the Authority, under section I1(1), has to give notice of its intention to make such an order, stating the reasons, therefore to such persons of undertaking as may appear to it to be concerned in the contravention, to show cause why such order should not be made and to give to the persons or undertaking an opportunity of being heard in support of their contention Under section 12 of the Ordinance, an order of the Authority under section 11 can, inter alia, in the case of undue concentration of economic power, either require the firm or company concerted, which is not a public limited company, to convert itself, within such time and to such manner a; may be specified in the order, into a public limited Company, or require the controlling shareholders of the public limited Company concerned to offer such part of the stocks and shares held by them within such time and in such…

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