Monopolies and
Restrictive Trade Practices (Amendment) Act, 1991 [Repealed]
[Act 58 of 1991]?????
[28th December, 1991]
?[Repealed by Act 30 of 2001]
An
Act further to amend the Monopolies and Restrictive Trade Practices Act, 1969
and the Companies Act, 1956
Be
it enacted by Parliament in the Forty-second Year of the Republic of India as
follows:-
Statement
of Objects and Reasons.-The Monopolies and Restrictive Trade Practices Act,
1969 (in short, MRTP Act) came in force w.e.f. 1st June, 1970. The basic philosophy
behind the MRTP Act was never to inhibit industrial growth in any manner but to
ensure that such growth is channelised for the public good and is not
instrumental in perpetuating concentration of economic power to the common
detriment. With the growing complexity of industrial structure and the need for
achieving economies of scale for ensuring higher productivity and competitive
advantage in the international market, the thrust of the industrial policy has
shifted to controlling and regulating the monopolistic, restrictive and unfair
trade practices rather than making it necessary for certain undertakings to
obtain prior approval of the Central Government for expansion, establishment of
new undertakings, merger, amalgamation, takeover and appointment of Directors.
It has been the experience of the Government that pre-entry restriction under
the MRTP Act on the investment decision of the corporate sector has outlived
its utility and has become a hindrance to the speedy implementation of
industrial projects. By eliminating the requirement of time-consuming
procedures and prior approval of the Government, it would be possible for all
productive sections of the society to participate in efforts for maximisation
of production. It is, therefore, proposed to restructure the MRTP Act by
omitting the provisions of Sections 20 to 26 and transfer the provisions
contained in CHAPTER III-A regarding restrictions on acquisition and transfer
of shares to the Companies Act, 1956. The Schedule to the MRTP Act is also consequently
to be transferred with modification of the Companies Act, 1956.
2.
It is also proposed to enlarge the scope of inquiry and the MRTP Commission
with a view to taking effective steps to curb and regulate monopolistic,
restrictive and unfair trade practices which are prejudicial to public
interest. It is also proposed to provide for deterrent punishment for
contravention of the orders passed by the MRTP Commission and the Central
Government and empower the Commission to punish for its contempt. Certain other
consequential changes are also found necessary in the MRTP Act.
3.
The certainty for determining dominance, applicable to acquisition and transfer
of shares under newly inserted Sections 108-A, 108-B and 108-C of the Companies
Act, 1956, is proposed to be determined only on the basis of market share of 25
per cent of the total goods produced, supplied, distributed or services
rendered in India or substantial part thereof.
4.
The Bill seeks to replace the Monopolies and Restrictive Trade Practices (Amendment)
Ordinance, 1991 (Ord. 8 of 1991) with modifications and to achieve the
aforesaid objects.
Section - 1. Short title and commencement.
(1)
This Act may be
called The Monopolies and Restrictive Trade Practices (Amendment) Act, 1991.
(2)
The provisions of Section
7 of this Act shall come into force at once and the remaining provisions shall
be deemed to have come into force on the 27th day of September, 1991.