New Delhi, Aug 14 (UNI) The Delhi High Court has stayed the direction of the MRTPC to investigate the charges of unfair trade practices by tobacco major ITC Ltd, which allegedly bent upon to close down cottage match box industries in the country.
While issuing notices to the Commission and All India Federation of Cottage Matches Manufacturers Association (AIFCMMA), the division bench headed by Justice Mukul Mudgal restrained the Monopolies and Restrictive Trade Practices Commission (MRTPC) from proceeding with the notice of enquiry(NoE).
The AIFCMMA representing more than 8,000 cottage match industry associations in South India had filed a complaint before the Commission stating that the ITC was using its monopolistic strength as a weapon to destroy the cottage match box industry, which is the source of livelihood to more than 3 lakh workers.
The Association stated that it had sufficient substance to show the monopolistic attitude adopted by the ITC to oust the cottage match factories from the market by purchasing the match boxes at the higher rate and selling them at a much lower price.
The ITC approached the high court challenging the MRTPC order issued in April 2006 on the ground that ''it was in total disregard of the procedure laid down in the MRTPC Regulations, 1991.'' According to the ITC, the basic requirement of disclosing the necessary facts with regard to alleged unfair trade practices were not met and the bald allegations could not be the sole ground for the commission to inquire into the matter.
The documents shown on record showed the sale of only match boxes and it didn't support allegations relating to "tie up sales," ITC petition stated.
The MRTPC and the Association were asked to file their replies by September 18, the next date of hearing.
UNI PAT KR PM1745
While issuing notices to the Commission and All India Federation of Cottage Matches Manufacturers Association (AIFCMMA), the division bench headed by Justice Mukul Mudgal restrained the Monopolies and Restrictive Trade Practices Commission (MRTPC) from proceeding with the notice of enquiry(NoE).
The AIFCMMA representing more than 8,000 cottage match industry associations in South India had filed a complaint before the Commission stating that the ITC was using its monopolistic strength as a weapon to destroy the cottage match box industry, which is the source of livelihood to more than 3 lakh workers.
The Association stated that it had sufficient substance to show the monopolistic attitude adopted by the ITC to oust the cottage match factories from the market by purchasing the match boxes at the higher rate and selling them at a much lower price.
The ITC approached the high court challenging the MRTPC order issued in April 2006 on the ground that ''it was in total disregard of the procedure laid down in the MRTPC Regulations, 1991.'' According to the ITC, the basic requirement of disclosing the necessary facts with regard to alleged unfair trade practices were not met and the bald allegations could not be the sole ground for the commission to inquire into the matter.
The documents shown on record showed the sale of only match boxes and it didn't support allegations relating to "tie up sales," ITC petition stated.
The MRTPC and the Association were asked to file their replies by September 18, the next date of hearing.
UNI PAT KR PM1745
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