 _no 63 olt98,2, the monopolm3 and restrlctfve trade practices (amjimdme'nt)  bill, 1982a bill fu,tther to amend the monopolies and restrictive tf'aie practices act, 1989 ba it enacted by parliament in the thirty-third year of the republic of india as follows;-l (1) this act may be called the monopolies and restrictive trade practices (amendment) act, 1982 5 (i) it ahau come into foroe on such date as the central government may, by notification in the ofticial gazette, appoint  ~actlces amend· abort title and com· !deucement a in section 2 of the monopolies and bestrictive trade act, 1989'  (hereinafter referred to as the principal act)-54 of 1  mentof section 2 10  (a) in cl&u18 (d),-,(') for the portion bejimring with the warda' ·'dominant uadertaldng" means' and endi!rg with the words "rendered in india or any' substantial part thereof:", tbe following shall be 1 substituted, name]y:-i "dominant undertaking" means-(i) an undertaking which has all the following three features, that is to 88y,-,(eli) it 1& an undertaking within the purview at the industries act;  '(bi) it has a licejl:ll8d ~~ 1or the produc  tion of goods of ~ cj8imptliod;, and (ei) ita licensed capacity for the production of iuch goods or the aggregate of its licensed capacity, ad of the licensed capacity of inter-connectecl ' undertakings, for the production of such goods is not less than one-fourth of the total installed capa- 5 city in india for the production of such goods; or <ii) an undertaking which has all the following three features, that is to say,-(gii) it is an undertaking within the purview of the industries act; 10 (bii) it, by itaelf or along with inter-connected undertakings produces, supplies, distributes or otherwise controls not less than one-fourth of the total goods of any description that are produced, supplied or distributed tin india or any substantial part thereof; 15 and (cii) it has no licensed capacity for the production of such goodsj or  (iii) an undertaking which has both the following ,eatures, that _ to say-flo ·(aiii) it is not an undertaking within the purview of the industries act; and (biii) it, by itself or along with inter-connected undertakings produces, supplies, distributes or otherwise controls not lees than ooe-fourth of the total 25 goods of any description that are produced, supplied at: diatributed in india or any: substantial part there-01·   , , - ,(w), an undertaking which provides or otherwise controls not less than one-fourth of any: services that are 30 rendered in india or any' substantial part thereof,:' a ~(ii) in the proviso, for the words "thje clause", the words, bncketa and figures "/rlb-clauses (ii), and (iio, of tbis claj,lle" ihall be iubet1tutedi (iii), in e:tpl4n4tion 1, for the words "not less than one-third 35 ot' the words "the licensed capacity of inter-connected undertakjd, for the production of any goodi is not less than onefourth of the installed capacity for the production of such goods or not less than one-fourth of" shall be substituted, and for the \1rwd8 "any service", the words "any service, 81 the cue may: 40 be," shall be substituted; (itl) for e:tplanation 111, the following ezp14t14tion shau be iubsututed, namely:-"e~lanation iii-the question as to whether any undertaking, either by itself or along with tnter-connected 45 undertakings, producea, supplies, distributes or controls onefourth of any goods or provides or controle one-fourth of any aervba may be determined according to any of the followm, ctiteria, namely, value, cost, price, quantity or capacit7" of tbe &ooda or eervicea"; so (u) in explanaticm iv, for the words "in detennintnt', the words, brackets and figure "in determining with reference to the features specified in sub-clause (u), (iii) or (tv), as the case may be," shall be substituted;  (fj) after clause (e), the fodowing clause shall pe inserted, namely:-' c (ee) "goods of any description" in relation to an undertaking within the purview of the industries aet, means any article which falls under an item in the first schedule to that 10 act;'; ·(c) after clause (f), the following clauses shall be inserted naldely:-i 1 c (11) "industries act" means 'the 'industries (development and regulation) act, 1951, and includes any rules, notifications or orders thereunder; ,jre'if ,i (iff) "installed capacity" means installed capacity as recognised under the industries act or any returns thereunder;'; (d) after clause (g), the following clause shall de'1djerted, namely:-, " , 110 i (gg) "licensed capacity", in relation to goods of lilly d  cription and with respect to an undertaking within the purview of the industries act, means the licensed or productive capacity of sucll undertaking in relation to such goods, in accordance with the certfflcate of registration, licence, letter of intent or permi8-25 sion granted to it under the industries act and includes any increase in such capacity as may be approved by government under that acti'i (e) after clause (l), the 'tollowing clause shall be inserted name1y:-i i (ii) "produce" includes manufacture and an its grammatl cal variations and cognate expressions shall be construed accordingly;'; i " (f) after clause (v), the following clause shall be fnserted, namely:-i -, (vv) ctundertaking within the purview of the inctustrf-act" means an undertaking pertaining to a scheduled tdduitrj 86 defined in that act;', 3 in section 21 of the principal act,-(4) in sub-section (2), for the e:cp14"atioft, the following '8~ planation sluill be substituted, namely:-4~ iteo1'plcitujtion,-for the purposes of this sectiod,  undertaking shall be deemed to expand substantially in my manner tt, as a result of such expansfon,-(a) in the case cit an undertakin/i!' withfn the purview of the industries act and having a licensed capaclty for tbe production of goods, of any description, there would be _ increue of such u~ensed capacity by not 1_ thaa twtj-five per cent thereof; ~ , (b) in the case of an ul1dartajdag to which clause "(b)' of section 20 appiues but to which clause (s) of this b~14111&­tmm', dees not apply, the production, marketing, supply, distribution or control of any goods or the provision of any 5' bervices would increaae by, ,not less thantwenty-ftve per eent of the goods produced, marketed, suppued, distrtbutea or controlled, or services provided, by it immediately before such ftpulsfon; ,; , --(e) in the case df any other undertaldng,-r , 10 (i) it would have additional assets of a value of not ie thad twenty-ftve, per eent of the value of fts assets' immediately 'before such expansion; or '(u) tlieproduetion, marketi,n/! supply, distribution or control of any goods or the ~roviston of any services would increase by not less than twenty-five per cent of is the goods ~ oduced, matketed supplied, ' distributed or eontrolled, or services provided, by it immediately before such expansion"; -' -(b) for sub-section (4)', tlie following sub-section man be substituted, namely: _ 20 - (4) nothing, in this section shall apolv to any undertaldng ,in' so 'far as the expadsion i8 effected by the replacement, , renovation or modernisation of the whol or any l'8rt of the maehtnery or other equipment of the undertaking or by the in~anation of any b;tlanclng equipment 15 e~7uition-ii'or the purposes of this sub-section ''balancfng equipment" means any equipment or device needed for removing any production bottle-neck, and includes the installation of any equipment 01" device in the tool room, ancillary seniees or inspection department where such installation has a bearing on so the quantum and quality of production to be scbieveii' , 4 in section 22 of the principal act in sub-section (1), fm the words, brackets letter and filtures "to which clause (a) of section 20 applieff', the words "to whfch this part applies" shall be substituted s after seet10n 22 of the prindpal act, the following section shall be 95 inserted, namely:-~ ·"'-tl'""w'-· po-" ed' c" '22a (j) the central govemment may, py notiflcation in t1ie oftlclal gazettp _ direct that tub1ect to suel\ terms and condftlofls as may be specifted in the notiftcation all or an" df the provtafcms of 1i«tfcm 21 or sectlon 22 shall not apply to any propoaal_ -40 -(a) in respect of an industry or set"\tice speci1lecl in tjie notification: ---l' '--1~--: ,pro9fded that no industry or 8ftvlee shad be 80 speclftetl tddeistbe central government is 9dt1ed bavtng'regard to an ~ant factors that it is of high naftonalprforlty; ; 41) (b) for the 1nereaae in the production of "any goods or the p~on of any services which are meant exelusfve1y for export outside india; or (c) which relates to an undertaking established or propced 5 to be estabushed in a free trade zone f3 of 1961 e:z:planation-in this sub-section, "free trade zone" has the same meaning as in clause (i) of the explanation to section loa of tlie income-tax act, 1961 10 (2) every notijication issued under sub-section (1') shall liave efject for such period not ex(:eeding five years at a time as may be specified in the notification 20 (3) every notiftcation issued under sub-section (1) ball be laid as soon as may be after it is issued, before each house of paruament, while it is in session, for a total period of thfrty days which may be comprised in one session or in two or more successive sesslods, and if, before the expiry of the session immediately following the session or the suceessive sessions aforesaid, both houses agree in making any modification in the notification or both hou agree that the notification should not be made, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anythmg previously done under that notification' the question of making comprehensive amendments to1!he monapoliea ind restrictive trade practices act, 1969, with a view to removing tlie lacunae and the difficulties experienced in its administration is under t1ie consideration ot government pending the completion of this examination, it is considered necessary to make certain amendments in the act with a view to secure some of the socio-eeonomic objectives in fuller measure and in the context of the need for higher productivity and output, for encouraging exports in the interests of the economy of tlie country and for removing certain constraints in achieving higher productivity hence this bill 2 the amendments proposed in the bill seek to provide, among other thinp, for the following matters:-(1) the deftnition of "dominant undertaking" as contained in the act is proposed to be recast into two broad classifleations-one coming within the purview of the industries (development and regulation) act, 1951, and the other which is outside depending on whether the provisions of that act aj:qly to such undertakings or not even in respect of undertakings to which th~ industries act applies a distinction is proposed to be made between undertakings whi(!h havp licensed capacity for the qronuction of certain goods and undertakings which have no such licensed capacity -the dominance in respect of undertakings which have a licensed capacltywiu be dl!termined on the basis of such licensea capacity for any ~ods and the total installed capacity of such goods for the whole country  in respect of undertakings to which the industries act applies but whfchhave no licensed capacity and in respect of other undertakings to which the industries act does not apl?ly, the - existing criteria of dominance wouln be applicable (2) it is also proposed to reduce the share of nroduction supply distribution or control of goods or services which would render an undertaking a 'dominant undertaldnjl from one-third to onefourtli in the case of undertakin~ which have a licensed c8t?!lclty dominance will arise if the licensed capacity for any ~oods if! not less than one-fourth of the total installed capacity for such goods for the whole country ----~~i·'''iiii _f~ (3) licensed capacity is also proposed to be made the test for ;'etermininjl substantial expansion of underlaldnlz!ll com'np; within the purview of the industries act while retainin« the existin~ criterla of determining substantial expansion in respect of other undertakings --l-' "-"'-"  ,,,"", (4) to increase production of certain items of hil!b nationi'll r,jnoritv and goods which are meant exclul'livelv for eypol't outside 1ndil'l it is proposed to empower the central government to e:ocemnt, bv notification, certain industries services 0'1" undertakinm:; from obtaininp; approval under the act" for substantial expansion or for the establishment of any new undertakings (5) the other amendment!! included in the bill are consequential in nature' -~- ,-"" ~ the bill seeks to achieve the aforesaid objectivefl new dam; jagannath kaushal the 22nd aprlt, 1982 - -_,'- ,-'" clause 5 df the bill, which seeks to insert a new iiction 22a in the monopolies and restrictive trade practices act, 1969, empowers the central government, by notiftcation in the official gazette, to direct that the provisions of section 21 or section 22 of that act shall not apply' to any proposal-(i) in respect of any indlutry or service specj1ied in the notification if tbe central government is satisfied having regard to all relevant factors that such industry or service is of high national priority; or / :(ii) for the increase in the production of any goods or the la'ovision of any services which are meant exclusively for aport outside india; or (iii) which relates to an undertaking established or proposed to be established in a free trade zone 2 the notifications under this section will be issued by the central government only after taking into consirleratfon the guidelines indicated in the section every notification issued will also have eftact only for a period not exceeding five years at a time as may be speclfied in tl1e notification provision has also been made tor the laying of all such nc,tifications before each house of parliament ' 3 the delegation of legislative power is thus normal in character - - - - •• 2 in this act, unless the context otherwise requires,-- - - - - (d) "dominant undertaldng" melds an undertaking wh1eh either by ltse11 or along with tnwr-eolmected undertattnaa,-(i) produces, supplies, distributes or otherwise controls dot less than one-third of the total goods or any description that are p&'oc:iueed, supplied or dibtrsb1lted in i:ddia fir ad1 substantial part thereof or ,(u) provides or otbenrile contlow not 1_ thad one-third of any services ~at are ·ftlddeed id india fit illy iilbltllltfal part thereof: provided that for tha purpom8 of tbla clause, the gooda prod~ by an uddertaking which doea dot empio)--(ci) more than fifty workers on any day of the relevant year, and in any part of which a manufac~1 process is beidi carried on with the· aid of p,ower or is ~djnar1l1 110 carried on or i (b) more than one hundred workers on any day' of the relevant year, and in any part of which a manufacturing process is being carried on without the aid of power or is ordidarlll 80 carried 0111 ahall not be taken into account - - -  - ~1ana'tion i-where not less than one-third of the pfa duction, supply, distribution or control of 8d1 aoods or the pra ~ : vision or control of any service is shared by tnter-condected uddertakinp, each such' undertaldni shall be deemed, !or the purposes of this act, to be a dominant undertaking - - - - - e~1anation lll-any' undertaking which, either by' itself or along with inter-connected und~s, produces, supplies, distributea or controls one-third of any "ooda or p'rovidel or controls one-third of any: services according to any' of the follow- ing criteria, namely, value, cost, (?rice, quantity or capacity, of the goods or services or the number of workers employed for the production, supply t distribution or control of such goods or tor the renc:lerijjg of such services, shall be deemed to be a dominant undertaldng explanation iv-in determining the question as to w~1ihet an undertaking is or is not a dominant undertaking, regard spiall be had to-(i) the lowest production made, or services render~i by the undertaking concerned during the relevant year, an'd (ii) the figures published by the central govemment with regard to the total production made or ilefvlces rendered in india or any substant"al part tereof durirlk the relevant year  - • - - - - 21 (1) -                             -                                               -                                                                 -                                                                                  -  expan-"sian at  under-"takin, •     (2) notwithstanding anything contained in                                                                 any other law fl;r the time being in force no undertaking shall give effect to any propolltiu for its sub&tantia1 expansion unless such proposal has been approved hy the central government   explanation-for the purpose of this section, an undertaking shall be deemed to expand i)ubstantially if, after such expansion,-;                     (a) 1n the case of an undertaking to which clause (a) 0'1 st!etion          20 applies,-      (i) the value of its assets, before the expansion, would result in an increase by not less than twenty-five per cent of such vluue, or          (ii) the production, supply or distribution of any goods or the provision of any services by it before the expansion, would result in an increase by not less than twenty-five per cent of the goods produced,                                   supplied, distributed or controlled, or services provided, by it;     (b) in the case of an undertaking to which clause (b) of section 20 applies, the production, supply, distribution or control of any ,oods or the provision of any services by it would result in an increase by not less than twenty-five per cent of the goods pro-duced, supplied, distributed or controlled, or services provided, by it before the expansion    -                   -                                 -                                               -                                                             -  63 of 1961(4) nothing in this section shall apply to any industrial undertaking (which is not a dominant undertaking) to which section 13 of the industries (development and regulation) act, 1951, applies, in 80 far as the expansion relates to production of the same or similar type of good! establishment at new undertakinls 22 (1) no person or authority, other than government, sha,ll, after the commencement of this act, establish any new undertaki~ which, when established, would become an inter-connected undertakmg of an undertaking to which clause (a) of section 20 applies, except under, and in accordance with, the previous permission of the central government   __           i               -,,                        ,  a billfurther to amend the monopozies and restrictive trade practices act, 1969 -  ' (shri jagannath kaushat, minister for law, justice and comp4'n?j affairs) - 