OEN MICRO SYSTEM LIMITED Vs. UNFAIR TRADE PRACTICES

JUDGEMENT

(1.) A Notice of Enquiry (NOE) was issued to OEN Micro System Limited, Cochin, Kerala on 12.4.1993 under Sections 36b (d) and 36d of the Monopolies and Restrictive Trade Practices Act, 1969 (for brief the Act) levelling allegations that it indulged in unfair trade practices. The NOE was issued after a Preliminary Investigation Report (PIR) was submitted by the Director General (Investigation and Registration) (the DG) based on a complaint filed by Boots Pharmaceuticals Limited, Bombay.

(2.) The facts of the case as contained in the PIR may be summarized as given below : the informant Company, viz. , Boots Pharmaceuticals Limited purchased four terminals marked CT 5392 from the respondent in early 1990 for use with their computer HP 3000/925lx. This computer was gifted to the informant alongwith two terminals HP 700/92. According the informant the computer could be operated with HP 700/92 terminal as well as HP 2392a terminal. The terminal CT 5392 were purchased by the informant from the respondent on the representation made by the latter as well as the understanding given by it to the manufacturer of the computer Hewlett Packard Limited that the terminals CT5392 manufactured by it are compatible with HP 2392a. The terminals supplied by the respondent Company was found to be defective inasmuch as there were problems relating to the key boards and they behaved unpredictably when used with the computer. According to the respondent the malfunctioning of their terminals might be due to the fact that the informant was using HP 700/92 terminal and not HP 2392a terminal with the computer. Further, the terminal supplied by it is an indigenous version of Zentec 8392 and is 100 per cent compatible with HP 2392a terminal.

(3.) The NOE charged that the respondent falsely represented that the terminals supplied by it were compatible for operating HP 3000/900 LX Mini Computer and gave false and misleading guarantee regarding the performance of the terminals.