DIRECTOR GENERAL INVESTIGATION AND REGISTRATION Vs. MALAYALA MANORAMA

JUDGEMENT

(1.) Dr. Xavier Paul, Editor, "noothanam", a monthly in Malayalam made a complaint charging "malayala Manorama", "mathrubhoomi" and "kerala Kaumudi" with adoption of and indulgence in unfair trade practices within the meaning of Sec.36a of the MRTP Act, 1969 (the Act, for brief) stating that in order to boost their sale and circulation, an Insurance Scheme under which an amount of Rs.1 lakh is proposed to be paid to a subscriber, if he dies due to an accident during the period the Scheme is in force, has been launched. The only condition for entitlement to insurance cover is that a beneficiary should be a subscriber and should fill up an application form which is published in the newspapers, in question and on the basis of which he is registered under the Scheme. While for the subscribers to the "maiayala Manorama" and the "mathrubhoomi" a sum of Rs.1 lakh, is payable under the Scheme, an amount of Rs.2 lakhs, as the insurance amount, has been offered to the subscribers of "kerala Kaumudi".

(2.) The Director General (Investigation and Registration) (the DG), was asked to conduct an investigation into the complaint. He submitted a Preliminary Investigation Report (PIR) after investigation. It transpires from the PIR that with a view to boosting the circulation of these newspapers, the respondents entered into an agreement with the New India Assurance Company for providing insurance cover to the subscribers under the Group Janta Personal Accident Scheme. It has also been mentioned in the PIR that the duration of the Scheme is one year, in the first instance, and may be renewed from year to year. It also transpires that the respondents have paid the entire premium amount @ Rs.3/- per subscriber. What is noteworthy is that the respondents are not collecting even a single paise additionally from the subscribers who are registered under the Scheme. A salient feature of the Scheme is not for entitlement to the benefit under the Scheme, application forms which are accepted for registration under the Insurance Scheme are published in these newspapers only and a person has to be a subscriber for using the application form. The scheme is open to all the existing readers and subscribers as well as newly enrolled subscribers.

(3.) The scheme in respect of "malayala Manorama" was announced with effect from 14.2.1997 while that of "kerala Kaumudi" and "mathrubhoomi" with effect from 15.3.1997 and 18.3.1997 respectively. It has been concluded by the DG in his PIR that although the subscribers are not required to pay any extra amount to participate in the Scheme, they have necessarily, to subscribe to the newspapers and have to fill an application form which is printed therein for registration and have to remain subscribers during the period the Scheme is in force so that they remain entitled to the benefits under the Scheme. It has also been mentioned that after the launching of the Scheme, the sale and circulation of the newspapers has increased considerably, and the Scheme is in the nature of an allurement of additional benefits and, therefore, is an unfair trade practice which has been adopted by the respondents for promotion of sale of the newspapers, in question.