TATA ENGINEERING AND LOCOMOTIVE CO LIMITED BOMBAY Vs. REGISTRAR OF RESTRICTIVE TRADE AGREEMENT NEW DELHI

JUDGEMENT

(1.) This appeal is under Section 55 of the Monopolies and Restrictive Trade Practices Act, 1969 (referred to as the Act) against the judgment and order of the Monopolies and Restrictive Trade Practices Commission (referred to as the Commission) dated 25 July, 1975.

(2.) The principal question for consideration in this appeal is whether the agreement between the appellant referred to as Telco and its dealers allocating territories to its dealers within which only the dealers can sell bus and truck chassis referred to as the vehicles produced by the company constitutes a "restrictive trade practice."

(3.) Section 2 (o) of the Act defines "restrictive trade practice" to be a trade practice which has, or may have, the effect of preventing, distorting or restricting competition in any manner and in particular (i) which tends to obstruct the flow of capital or resources into the stream of production or (ii) which tends to bring about manipulation of prices, or conditions of delivery or to affect the flow of supplies in the market relating to goods or services in such manner as to impose on the consumers unjustified costs or restrictions.