HINDUSTAN LEVER LIMITED BOMBAY Vs. MONOPOLIES AND RESTRICTIVE TRADE PRACTICES COMMISSION NEW DELHI
LAWS(SC)-1977-4-9
SUPREME COURT OF INDIA
Decided on April 07,1977

HINDUSTAN LEVER LIMITED,BOMBAY Appellant
VERSUS
MONOPOLIES AND RESTRICTIVE TRADE PRACTICES COMMISSION,NEW DELHI Respondents





Cited Judgements :-

GOURANGA SAHU VS. MAGUNI DEI [LAWS(ORI)-1990-7-14] [REFERRED TO]
SHANTI DEVI VS. NAND LAL [LAWS(RAJ)-2004-12-5] [REFERRED TO]
MAHINDRA AND MAHINDRA LIMITED VS. UNION OF INDIA [LAWS(SC)-1979-1-62] [RELIED ON <SI1>MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT,1969 - S. 13(2),55,10(A)(III),2(O),33,]
D ANANDA MOORTHY VS. P CHANDRAKALA [LAWS(MAD)-2010-3-657] [REFERRED TO]


JUDGEMENT

M .H. Beg, C. J. - (1.)This is an appeal under S. 55 of the Monopolies and Restrictive Trade Practices Act. 1969 (hereinafter referred to as the Act), against the order and judgment of the Monopolies and Restrictive Trade Practices Commission, New Delhi (hereinafter referred to as the Commission), in proceedings started under S. 10 (a) (iv) of the Act against the appellant M/s. Hindustan Lever Ltd. (hereinafter referred to as the Company), upon information furnished by Bhogilal Manilal Shah of M/s. Shah Manilal Motichand and Sons of Poona (hereinafter referred to as the informant).
(2.)The informant was a redistribution stockist of the appellant company carrying on business regulated by the terms of an agreement, known as the redistribution stockists agreement of the company, found in a standard printed form entered into with each stockist. The agreement has 23 terms or clauses in it. The clauses complained of are 5 and 9, which may be reproduced here:
"5. The Redistribution Stockist shall use his best endeavours to maintain and increase the trade of the products in the said town and for this purpose. he shall at all times keep and maintain adequate stocks of the products in all its packings and he shall carry out all instructions and directions including those as to the maximum resale price which may from time to time be given by the Company or by the Company's accredited representatives in respect of the sale or resale or disposal by the Redistribution Stockist of stocks of the products supplied to him in pursuance of this agreement. The Redistribution Stockist is prohibited from charging in excess of the maximum resale prices stipulated by the Company, but he may, at his discretion, charge prices lower than the said maximum resale prices. The Redistribution Stockist shall purchase and accept from the Company such stock as the Company shall at its discretion send to the Redistribution Stockist for fulfilling its obligations under this Agreement."

"9. In order to ensure equitable and reasonable distribution of stocks at fair prices, the Redistribution Stockist shall not rebook or in any way convey, transport or despatch parts of stocks of the products received by him outside the aforesaid town except when he is so expressly directed in writing by the Company. He shall also whenever so required by the Company make available from the stocks of Company's merchandise purchased by him such part as the Company directs him to do for purposes of resale on his behalf by the Company's employees".

(3.)It is alleged that the two clauses, set out above. found in identical agreements entered into by the Company with its stockists, whose number is quite large, constitute or authorise restrictions which are unreasonable and illegal. Hence, it was submitted by the respondents that it must be struck down or modified so as to make the business and trade of the appellant company and its stockists conform to the requirements of law.


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