HINDUSTAN LEVER LTD., BOMBAY vs THE MONOPOLIES & RESTRICTIVE TRADE PRACTICES

The Supreme Court upheld the Monopolies & Restrictive Trade Practices Commission's decision to amend Clause 5 of the agreement between a manufacturer and redistribution stockists, which allowed the manufacturer excessive discretion over stock allocation. The Court found that this discretion could lead to restrictive trade practices as defined under Section 2(o) of the Monopolies & Restrictive Trade Practices Act, 1969. The deletion of the last sentence of Clause 5 was deemed necessary to prevent misuse of power and ensure fair competition.