J K SYNTHETICS LIMITED Vs. STATE

JUDGEMENT

(1.) A Notice of Enquiry (NOE) was issued to the respondent, J. K. Synthetics Limited, Kamla Tower, Kanpur under Sec.10 (a) (iv) of the Monopolies of Restrictive Trade Practices Act, 1969 (for brief, the Act) on the basis of a Preliminary Investigation Report (PIR) submitted by the Director General (Investigation and Registration) (for brief, the DG ).

(2.) The NOE charged that the respondent entered into an agreement with its dealers/ stockists, which contained clauses falling within the meaning of restrictive trade practices as defined in the Act.

(3.) Short details of the two clauses of the agreement and the sections of the Act which are violated, as contained in the NOE, are briefly indicated below : (i) Clause 5 of the agreement prohibits dealers from selling cement over and above the maximum price printed on the cement bag without giving any liberty to the dealers/stockists to sell cement at prices lower than that. It is in violation of Sec.33 (1) (f) of the Act. (ii) The respondent allows quantity discounts an slab basis ranging from Rs.0.50 to Rs.2.00 per bag of cement attracting provisions of Sec.33 (1) (e) of the Act.