set up specifically to prevent:
(i) monopolistic trade practices; and
(ii) restrictive and unfair trade practices.
The Commission's primary image is as a consumer protection
body. This is partly historical. Since the judicial system lacked
consumer protection laws at the time it was set up, it was found
convenient, in 1984, to add to its other provisions, viz. those
regarding unfair trade practices.
Restrictive and unfair trade practices, it is felt, distort
competition in the trade and industry and adversely affect consumer
interest. Where unfair trade practices are concerned, there is also
legislation, the Consumer Protection Act, 1986 which is independently
administered through the redressal machineries set up under it. This
does not, however, affect the scope and jurisdiction of the MRTP
Commission.
The Consumer Protection Act contemplates the establishment of
fora for redressal of grievances at district, state and national
levels; it thus provides more opportunities for consumers to file
complaints and to obtain quick remedies. Here, the procedure to be
followed in disposing of complaints is relatively simple. The Consumer
Protection Act does not , however, have any provision to grant a stay
as contemplated in Section 12-A of the MRTP Act. Moreover, the
consumer fora cannot pass cease and desist orders which can be passed
under the provisions of the MRTP.
The MRTP Commission has the jurisdiction to enquire into any
restrictive, unfair or monopolistic trade practices. Allegations of
restrictive or unfair trade practices can come from any of the
following four sources:
(i) a complaint from any trade association or from any consumer or a
registered consumer's association, whether such a consumer is a member
of that consumer's association or not;
(ii) complaints referred by the central or state governments;
(iii) applications by the Director General; or through the
(iv) commission's own knowledge or information.
The Commission has been granted powers to issue temporary
injunctions against companies indulging in restrictive trade
practices. The earlier provision contained a loophole that allowed
High Courts to prevent the exercise of this power if the MRTP had not
instituted an enquiry against the offending party. Under the
Amendment, an explanation has been added which allows notice to the
offender.
Property developers and chit funds have also been brought
within the purview of the Act. In the case of real estate developers,
MRTPC's jurisdiction has been conferred retrospectively so that
restrictive or unfair trade practices committed, say, ten years
earlier can also be brought under the scrutiny of the Commission. Over
the period of the last several years, since the regulatory provisions
on unfair trade practices were introduced in the MRTP Act, voluminous
case law has been built up in this field.
The proceedings before the commission are fully judicial and on a
question of law an appeal lies directly to the Supreme Court of India.
The method of institution of an enquiry is very similar to the normal
court proceedings and the procedure followed during investigation is
also fully in accordance with the rules of natural justice. The
procedure is prescribed by the detailed regulations. Oral arguments
are heard at length apart from written briefs. There is no pre-trial
procedure except that during the course of investigation by the
Director- General the complaint may be amicably settled in some cases.
The Commission has specifically been granted powers of contempt
of court if its orders are violated.
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