UNION OF INDIA Vs. TRIVENI ENGINEERING WORKS LTD.

JUDGEMENT

(1.) The question for consideration in this appeal is how to calculate the value of assets within the meaning of s. 2(w) of Monoplies & Restrictive Trade Practices Act, 1969 (hereinafter to be called "the Act") for the purpose of determining the registrability of an undertaking under s. 26 of the Act for the applicability of Chap. III, Part A of the Act, which aims at preventing concentration of economic power.

(2.) This is an appeal against the order of Prakash Narain J. (as his Lordship then was) by which he quashed the impugned notices dated November 1, 1971, and December 29, 1971, and prohibited the prosecution of the respondent -company for its alleged non -registration under s. 26 of the Act.

(3.) Chapter III of the Act deals with regulation of concentration of economic power, the obvious purpose being to regulate the monopolistic tendencies in the economy of the country. Sec. 20 of Part A of the Act applies to an undertaking if the total value of its own assets, or its own assets together with the assets of its interconnected undertakings, is not less than Rs. 20 crores. The value of assets is defined in s. 2(w) of the Act to mean the value of its assets as shown in its books of account after making provision for depreciation or for renewal or diminution in value. The Explanation to s. 20 clarifies that the value referred in the case of an undertaking will be the value of assets on the last date of its financial year which closes during the calendar year, immediately preceding the calendar year in which the question arises as to whether this power does or does not apply to such an undertaking. Sec. 26 of the Act requires that every undertaking to which Part A applies at the commencement of this Act or to which the provisions of that part become applicable thereafter, shall within 60 days from such commencement or the date on which that Part becomes first applicable to it, make an application to the Central Government for its registration an such undertaking. Sec. 48(2) of the Act provides that if any undertaking to which Part A of Chap. III applies fails without any reasonable excuse, to make an application under s. 26, to register itself as an undertaking, then the undertaking shall be punishable with a fine which may extend to Rs. 1,000, and where the offence is a continuing one, with a further fine of Rs. 50 for every day, after the first, during which such failure continues. The respondent -company was informed by a letter dated July 9, 1971, that according to the information with the Central Govt. the undertaking was registrable under s. 26 of the Act and asking it to show cause why it has not done so and why proceedings under s. 48(2) of the Act be not taken against it.