COLGATE PALMOLIVE INDIA LIMITED Vs. HINDUSTAN LEVER LIMITED

JUDGEMENT

(1.) These two appeals under Section 55 of the Monopolies and Restrictive Trade Practices Act (hereinafter referred to as the 'MRTP Act') are directed against the order of the Monopolies and Trade Practices Commission under Section 12-A of the MRTP Act dated 30th April, 1998 in matter No. UTPE 415 of 1997. The matter pertains to colgate toothpaste, a product of Colgate Palmolive (India) Limited and by reason of a complaint from M/s. Hindustan Lever Limited being the Appellant in the 2nd appeal. Whereas CA No. 2620 of 1998 is against the order of the Commission containing an order of restraint as regards the display of the ring round the family as "Suraksha Chakra" in Colgate Plamolive's hoardings, print advertisements and T. V. commercials, the CA No. 3288 of 1998 filed by M/s. Hindsutan Lever Limited is against the order of refusal on the part of the Commission to put a total ban on the product of the Colgate Palmolive as noticed above.

(2.) Before adverting to the rival contentions, be it noted that the M. R. T. P. Act as originally framed did not confer any power on to the Commission to grant temporary injunction during the course of inquiry. The Sachhar Committee report, however, recorded that power to issue temporary injunction order ought to be made availale to the Commission in order to give effect and strengthen the jurisdiction and authority of the Commission and it is by reason therefor the Legislature thought it fit to incorporate Section 12-A in the body of the Act by MRTP Amendment Act, 1984 conferring such a power to the Commission.

(3.) While it is true that the conferment of power, under Section 12-A, has very wide ramifications but the Legislature was itself conscious enough to record in the body of the section certain in-built requirements to be fulfilled in order to clothe the Commission with the authority and jurisdiction in the matter of grant of an order of injunction and it is on this perspective that Section 12-A ought to be noticed at this juncture. Section 12-A reads as below:-