Law:

Section:

Monopolies and Restriction Trade Practices (Control and Prosecution) Ordinance, 1970- ----Ss. 20, 12, 3--Civil Procedure (V of 1908), S. 100--Cement price was increased--Public out cry appeared in press--Suo muto notices to manufacturers u/S. 14--Violation--Special enquiry conducted by authority which resulted in order impugned--Authority concluded there had been cartel--U/s 12(1)(c) ordered the manufacturers to back the cartel manufacturers filed appeal u/S. 20 of the Ordinance--Held: (i) Authority had to adjudicate upon whether there had been violation of relevant provision of Ordinance--There is close identity between S. 20 of the Ordinance, 1970 and S. 100 of C.P.C--Appeal against the order of authority also lies on question of law. (ii) Authority has a general statutory duty to ensure that there is no violation of S. 3 of Ordinance. (iii) Competition means and requires the free interplay between the suppliers and consumers of goods in a market environment--Authority must establish that all of various ingredients of an unreasonably restrictive trade practice as envisaged by deeming provisions contained in Section 6(1). (iv) On bare reading of S. 6(2) of Ordinance provides that if the clauses specified there are fulfilled in relation to an agreement to which sub-section (1) applied, then that agreement shall not be deemed to be an unreasonably restrictive trade practice--Agreement must be found to exist on an objective assessment of all the facts--If no agreement can be found the matter ends--No need to take recourse to sub-section (2). (v) Agreement specified in Section 6(1) exists in order to attract the deeming provisions--If it exists, would be violation of Section 3 and offender liable to penalty u/S. 19 of Ordinance. (vi) Prices rose in parallel does not establish that there existed a cartel among the appellants in violation of S. 6(7), there was no basis for authority to contend that there has been a "planned" or "systematic" increase in the prices or existence of "cartel". (vii) Authority is the regulator and restorer of competition and not of prices by confusing two functions and powers, the authority has asserted a power that does not vest in it…

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