DIRECTOR GENERAL OF INVESTIGATION & REGISTRATION Vs. KEDIA ELECTRICAL INDUSTRIES
LAWS(NR)-1996-2-1
MONO POLIES AND RESTRICTIVE TRADE PRACTICES COMMISSION
Decided on February 20,1996

DIRECTOR GENERAL OF INVESTIGATION AND REGISTRATION Appellant
VERSUS
KEDIA ELECTRICAL INDUSTRIES Respondents

JUDGEMENT

S.Chakravarthy, Member - (1.) THIS enquiry commenced with an application filed by the Director General (Investigation & Registration) [DG] under Section 36B(c) of the MRTP Act, 1969 alleging that the respondent M/s. Kedia Electrical Industries had indulged in certain unfair trade practices attracting Section 36A(1) of the Act. The respondent is in the business of manufacturing and selling air -conditioners. In his application, the DG has alleged that Shri Kamal Kedia, Proprietor of the respondent had at Press conference in Oct.,87, made "fraudulent claims about the quality and price" of its air -conditioners, furnishing certain details of the alleged misrepresentations.
(2.) BASED on the application of the DG, a Notice of Enquiry (NOE) was issued on 9th Jan., 89. In the NOE, four specific misrepresentations and claims of the respondent about its product have been listed. The said claims are: 1. The respondent is the only unit in the country manufacturing air -conditioners with heating arrangements. 2. It is a new unit and exempt from Central Excise Duty. Its air -conditioners are cheaper than any other brand air -conditioner by Rs. 11,000/ - as the respondent need not pay U.P. Sales Tax and Central Excise Duty.
(3.) IT manufactured 170 air -conditioners last year and all the parts used in the manufacture are ISI marked. Note: The expression "last year" in item -4 above has to relate to the year 1986 -87 as the purported Press conference held by Shri Kamal Kedia was in Oct.,87. 3. The NOE has categorically stated that the false or misleading claims of the respondent causing loss or injury to the consumers attract the provisions of Section 36A(l)(i), (iv) and (vi) of the Act and that the alleged practices are prejudicial to public interest. 4. According to the DG, two reports were published in two Hindi dailies, of the Press conference held by Shri Kamal Kedi. One appeared in "Gandiv", a Hindi daily of date 21st Oct.,87 and the other appeared in Danik Jagran, a Hindi daily of date 19th Oct.,87. These two Press reports are the basis on which the DG has supported his allegations in the application preferred by him in this Commission.;


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