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Monopolies and Restrictive Trade Practices (Amendment) Act, 1991 [Repealed]

Monopolies and Restrictive Trade Practices (Amendment) Act, 1991 [Repealed]

Monopolies and Restrictive Trade Practices (Amendment) Act, 1991 [Repealed]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?[Repealed by Act 30 of 2001]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.

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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.