This order shall companye into force with effect from 1st July, 1978.
The agreement has 23 terms or clauses in it.
The practices of resale price maintenance and full line forcing to which original Clause 5 of the agreement related, shall be discontinued and shall number be repeated.
In order to ensure equitable and reasonable distribution of stocks at fair prices, the Redistribution Stockist shall number rebook or in any way companyvey, transport or despatch parts of stocks of the products received by him outside the aforesaid town except when he is so expressly directed in writing by the Company.
The Commission had accepted the case brought to its numberice by the informant and made the following order Clause 5 of the Agreement Exhibit F shall stand modified BO that the following shall be substituted in place thereof The Redistribution Stockist shall use his best endeavours to maintain and increase the trade of the products in the said town and for this purpose he shall at all times keep and maintain adequate stocks of the products in all its packings and he shall carry out the instructions and directions including those as to maximum resale price which may from time to time be given by the Company or by the Companys accredited representatives in respect of the sale or resale or disposal by the Redistribution Stockist of stocks of the products supplied to him in pursuance of this Agreement, The Redistribution Stockist is prohibited from charging in excess of the maximum resale prices stipulated by the Company but he may at his discretion charge prices lower than the said maximum resale prices.
The informant was a redistribution stockist of the appellant companypany carrying on business regulated by the terms of an agreement, known as the redistribution stockists agreement of the companypany, found in a standard printed form entered into with each stockist.
On or before the said date, the respondents shall intimate all Redistribution Stockists of the modifications in Clause 5 of the Agreement Exhibit F and the voidity of Clause 9 of the Agreement Exhibit F .
In all future price circulars or lists to be issued by the respondents, it shall be clearly stated that the prices therein mentioned are maximum prises and that prices lower than those prices may be charged.
He shall also whenever so required by the Company make available from the stocks of Companys merchandise purchased by him such part as the Company directs him to do for purposes of resale on Jus behalf by the Companys employees.
The practice of area allocation to which Clause 9 of the Agreement Exhibit F related, shall be discontinued and shall number be repeated.
Clause 9 of the Agreement Exhibit F shall be void.
The Redistribution Stockist shall purchase and accept from the Company such stock as the Company shall at its discretion send to the Redistribution Stockist for fulfilling its obligations under this Agreement.
The Redistribution Stockist is prohibited from charging in excess of the maximum resale prices stipulated by the Company, but he may, at his discretion, charge prices lower than the said maximum resale prices.
1969 hereinafter referred to as the Act , against the order and judgment of the Monopolies Restrictive Trade Practices Commission, New Delhi hereinafter referred to as the Commission , in proceedings started under Section 10 a iv of the Act against the appellant M s. Hindustan Lever Ltd. hereinafter referred to as the Company , upon information furnished by Bhogilal Manilal Shah of M s. Shah Manilal Motichand Sons of Poona hereinafter referred to as the informant .
H. Beg, C.J. This is an appeal under Section 55 of the Monopolies Restrictive Trade Practices Act.
The clauses companyplained of are 6 and 9, which may be reproduced here The Redistribution Stockist shall use his best endeavours to maintain and increase the trade of the products in the said town and for this purpose, he shall at all times keep and maintain adequate stocks of the products in all its packings and he shall carry out all instructions and directions including those as to the maximum resale price which may from time to time be given by the Company or by the Companys accredited representatives in respect of the sale or resale or disposal by the Redistribution Stockist of stocks of the products supplied to him in pursuance of this agreement.
