AIR 2009 SUPREME COURT 399 ::2008 AIR SCW 7461 ::2009 CLC 44 (SC) ::(2008) 85 CorLA 1 ::2008 (12) SCC 73 ::2008 (8) Scale 586 ::2008 (7) SRJ 121

Supreme Court Of India

Hon'ble Judge(s): Tarun Chatterjee, Dalveer Bhandari , JJ

(A) Monopolies and Restrictive Trade Practices Act (54 of 1969) , S.38(1)(h), S.2(o)(ii)— Restrictive trade practice - 'Cease and desist' order - Pre condition for passing - Tie-up of sales of trousers with other readymade garments by appellant - Appellant having little share in ready to wear garments sector - Restriction imposed even if true does not restrict competition to material degree so as to prejudice 'public interest' - Cease and desist order unjusti fied. The Court would be justified in passing the order on alleged restrictive trade practice only when it is 'prejudicial to public interest' under Cl. (h) of S. 38(1). The pre condition for passing such an order is that the restriction as imposed directly or indirectly when restricts or discourages competition to any 'material degree' in any trade or industry, then only it would be considered as 'prejudicial to public interest'. The Court should not pass an order of 'cease and desist' where the alleged restrictive trade practice does not have the impact on restricting competition to any material degree.(Para 44) Where one of the dealers of the appellant, engaged in business of manufacturing ready to use garments, alleged that the appellant had stipulated that blazers, suits and safaris would be supplied only if substantial orders were placed for readymade trousers but it....