DIRECTOR GENERAL INVESTIGATION AND REGISTRATION Vs. BOMBAY PAINTS AND ALLIED PRODUCTS LTD

JUDGEMENT

(1.) THIS is an application under Section 10(a)(iii) read with Section 37 of the Monopolies and Restrictive Trade Practices Act, 1969, filed by the Director-General (Investigation and Registration) against Bombay Paints and Allied Products Ltd. of Bombay (hereinafter referred to as "the respondent"). The respondent is engaged in the sale and distribution of paints. The respondent has appointed selling agents on terms and conditions specified in an agreement--specimen copy of which is "annexure A". The Director-General has challenged Clauses 3, 4 and 6 of the agreement contending that these give rise to restrictive trade practices as defined in Clauses (c), (e) and (g) of Sub-section (1) of Section 33 of the Monopolies and Restrictive Trade Practices Act. The said clauses as given in the application of the Director-General read as follows :

(2.) The respondent controverted the allegations of restrictive trade practices and in the reply filed by them it is stated that the Director-General misunderstood the information furnished to him while the factual position is summarised as below :

(3.) AS regards the impugned Clause (6), it is stated that it is not hit by Clause (e) of Sub-section (1) of Section 33 of the Monopolies and Restrictive Trade Practices Act inasmuch as the said clause applies only to purchasers and not to selling agents. Since the respondent is hot the seller and the selling agent is not the purchaser of the goods, the restriction that the selling agent will not act on behalf of any other person, firm or company dealing in similar products as that of the respondent company is not a restriction as contemplated under Clause (c) of Sub-section (1) of Section 33 of the Monopolies and Restrictive Trade Practices Act.