BRINDAVAN AGRO INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By this writ petition under Article 226 of the Constitution of India the petitioners have challenged the constitutional validity of Section 33(1 ) of the Monopolies and Restrictive Trade Practices Act, 1969 (for short the Act) as violative of Articles 14 and 19(1 )(g) of the Constitution; sought for quashing the order dated 21.2.1997 (Annexure E) of the Monopolies and Restrictive Trade Practices Commission (for short, the Commission) directing inquiry and the notice of inquiry (Annexure F) sent to the petitioners and also sought for quashing similar notices sent to other bottlers with whom petitioner No. 3 has entered into similar agreements, list of which has been given in Annexure G.

(2.) Briefly the facts are that M/s. Coca Cola Company, (petitioner No. 3) is a Corporation, incorporated in the United States of America with principal office at City of Atlanta, State of Georgia, USA, and is engaged in the manufac- ture and sale of certain concentrates, beverage basis and syrups used in the preparation of certain non-alcoholic beverages such as Coca-cola, Fanta, Spirta, Gold Spot, Limca, Thums Up etc. which are offered for sale in bottles or other containers, under various Trade Marks for which it has the exclusive right to prepare, package and to manufacturer and sell the same in India.

(3.) Petitioner No. 3 has entered into agreement dated 9.8.1993 (Annexure B) called Bottler's Agreement with petitioner No. 1, an Indian Company, called 'the Bottler' granting licence to the latter authorising it to prepare and package the beverages in authorised containers and to distribute and sell the same under its trade marks only in the specified territory, i.e. in the Districts of Agra, Mathura and Aligarh in the State of U.P. on the various terms and conditions mentioned therein. The agreement inter alia contains the following terms and conditions to which objection before the Commission is that these are restrictive trade practices falling in Clauses (g), (a) and (e) of Sub-Section (1) of Section 33 of the Act: