TMI Blog2001 (1) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... at there was any protest by Jain General Stores to the appellant against the so-called practice of sending more slow moving goods and less of fast moving goods, we find that neither in the show-cause notice nor in the additional particulars was there any mention with regard to Jain General Stores. Principles of natural justice would require that the appellant against whom an order of cease and desist could be passed under the provisions of the MRTP Act is entitled to know the case which it has to meet. Passing of an order like the present one results in civil consequences and it is now well settled that in such an event principles of natural justice have to be followed. - CIVIL APPEAL NO. 2457 OF 1987 - - - Dated:- 10-1-2001 - B.N. KIR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been indulging in the following trade practices : ( i )Tie-up sales of soaps and detergents, manufactured by the company which are in demand; ( ii )Area restriction on re-distribution stockists; ( iii )Re-sale price maintenance; ( iv )Refusal to deal or supply; ( v )Obtaining interest - free and discriminatory security deposits/advance from dealers; and ( vi )Discriminatory dealings with dealers; AND WHEREAS it appears to the Commission that the said trade practices have or may have the effect of preventing, distorting or restricting competition amongst the dealers and may have the effect of imposing unjustified costs or restrictions on the consumers; AND, THEREFORE, in exercise of the powers conferred upon it by section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticular, it stated in the said reply that there had been a denial of principles of natural justice because all information and material which was available with the Commission on the basis of which the notice had been issued had not been furnished to the appellant. 4. Evidence was led, both oral and documentary, before the Commission on the following issues which had been framed : "( i )Whether the enquiry is not maintainable for the grounds alleged by the respondent in their reply dated 28-5-1984 to the Notice of Enquiry dated 28-12-1983; ( ii )Whether the respondent has been indulging in the Trade Practices mentioned in the Notice of Inquiry dated 28-12-1983; ( iii )If the answer to Issue No. ( ii ) is in the affirmative, then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Shri Sanjay Parikh appearing for Jain General Stores contended that on the facts found by the Commission the order was justified and no question of law really arises for consideration by this Court. 6. As we have indicated hereinabove, there were two reasons given by the Commission for passing the order against the appellant. The show-cause notice mentions the trade practices which were alleged to have been followed by the appellant like tie-up sales of soaps and detergents, refusal to deal or supply, etc., and then alleges that these trade practices appeared to the Commission to have or may have the effect of preventing, distorting or restricting competition amongst the dealers and may have the effect of imposing unjustified costs o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en though oral evidence had been led, the order of the Commission does not record any categorical finding to the effect that the trade practices alleged to have been carried on by the appellant had resulted in preventing, distorting or restricting competition amongst the dealers. We need not go into the question whether terminating the agreements of the dealers would result in the attraction of the provisions of section 2( o ), but what we have to see is as to whether the appellant has been guilty of preventing, distorting and restricting competition amongst the dealers which was the allegation levelled against it. In the absence of such a finding and there not being even a whisper in the order that any action of the appellant had the effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... restrictive trade practice." Apart from the fact that the evidence on record does not show that there was any protest by Jain General Stores to the appellant against the so-called practice of sending more slow moving goods and less of fast moving goods, we find that neither in the show-cause notice nor in the additional particulars was there any mention with regard to Jain General Stores. Principles of natural justice would require that the appellant against whom an order of cease and desist could be passed under the provisions of the MRTP Act is entitled to know the case which it has to meet. Passing of an order like the present one results in civil consequences and it is now well settled that in such an event principles of natural just ..... X X X X Extracts X X X X X X X X Extracts X X X X
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