Chapter: 3.1.5 Supreme Court on Unfair Trade Practices

Supreme Court on Unfair Trade Practices:

Hon'ble Supreme Court has held in OM PRAKASH (APPELLANT) V/S. A E HARYANA AGRO INDUSTRIES CORPN. (RESPONDENT), 19^94 (2) CPR 9 (SC) that intentional delaying the delivery of a vehicle by the trader to a customer, whereby the customer had to pay more price due to increase in the price of vehicle, amounts to Unfair Trade Practice.           

In the aforesaid case, the complainant had booked a tractor and deposited the price in advance on 12.12.90. The tractor was delivered on 21.9.91 at an enhanced rate. Delay in delivery was caused by the pick and choose policy of the dealer. The District Forum ordered refund of the enhanced amount of Rs.40,690/- which the appellant had to pay. Though the State Commission upheld this order, the National Commission reversed it. Section 36A defines Unfair Trade Practices & in different sub - clauses of that section, many Unfair Trade Practices have been specified. However, Act No.58 of 1991 further amended this section to make it more comprehensive. The relevant parts of Section 36-A are as follows:

36-A Definition of Unfair Trade Practices:

In this part unless the context otherwise requires 'Unfair Trade Practice' means trade practice which, for the purpose of promoting the sales, use or supply of any goods or for the provision of any services (adopts any unfair method or deceptive practice including any of the following practices) namely

Permits the hoarding or destruction of goods or refuse to sell the goods or make them available for sale or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise the cost of those or other similar goods or services."

HELD; " As such the conduct and the practice adopted by the respondent in respect of the tractor to Lye appellant, shall not fall under sub-section (5) of section 36-A of MRTP Act (now replaced by The Competition Act, 2002) but after the introduction of aforesaid amendment in bracketed portion i.e. 'adopts any Unfair method or unfair or deceptive practice' not making delivery of the tractor to the appellant shall certainly be deemed to be an 'Unfair Trade Practice' within the meaning of Section 36-A".