law: Trade Monopolies and Restrictive Trade Practices Act, 1969 
  2. Definitions
  In this
  
  Act, unless the context otherwise requires, -
  a.     "agreement"
  
  includes any arrangement or understanding, whether or not it is intended that
  
  such agreement shall be enforceable (apart from any provision of this Act) by
  
  legal proceedings;
  b.    "Commission"
  
  means the Monopolies and Restrictive Trade Practices Commission established
  
  under section 5;
  c.     "Director
  
  General" means the Director General of Investigation and Registration
  
  appointed under section 8, and includes any Additional, Joint, Deputy or
  
  Assistant Director General of Investigation and Registration appointed under
  
  that section;
  d.    [
  
  3 "dominant undertaking" means –
  (iii) an
  
  undertaking which, by itself or along with inter-connected undertakings
  
  produces, supplies, distributes or otherwise controls not less than one-fourth
  
  of the total goods that are produced, supplied or distributed in India or any
  
  substantial part thereof; or
  (iv) an
  
  undertaking which provides or otherwise controls not less than one-fourth of
  
  any services that are rendered in India or any substantial part thereof.
  Explanation
  
  II : Where
  
  any goods are the subject of different forms of production, supply,
  
  distribution or control, every reference in this Act to such goods shall be
  
  construed as reference to any of those forms of production, supply,
  
  distribution or control, whether taken separately or together or in such groups
  
  as may be prescribed.
  Explanation
  
  III : The
  
  question as to whether any undertaking, either by itself or along with
  
  inter-connected undertakings, produces, supplies, distributes or controls
  
  one-fourth of any goods or provides or controls one-fourth of any services may
  
  be determined according to any of the following criteria, namely, value, cost,
  
  price, quantity or capacity of the goods or services.
  Explanation
  
  IV : In
  
  determining, with reference to the features specified in sub-clause (iii)
  
  sub_clause(iv), as the case may be, the question as to whether an undertaking
  
  is or is not a dominant undertaking, regard shall be had to –
  (i)             the
  
  average annual production of the goods, or the average annual value of the
  
  services provided, by the undertaking during the relevant period; and
  (ii) the
  
  figures published by such authority as the Central Government may, by
  
  notification, specify, with regard to the total production of such goods made,
  
  or the total value of such services provided, in India or any substantial part
  
  thereof during the relevant period.
  Explanation
  
  V : In
  
  determining the question as to whether an undertaking is or is not a dominant
  
  undertaking in relation to any goods supplied, distributed or controlled in
  
  India, regard shall be had to the average annual quantity of such goods
  
  supplied, distributed or controlled in India by the undertaking during the
  
  relevant period.
  Explanation
  
  VI : For
  
  the purposes of this clause, "relevant period" means the period of
  
  three calendar years immediately preceding that calendar year which immediately
  
  precedes the calendar year in which the question arises as to whether an
  
  undertaking is or is not a dominant undertaking.
  Explanation
  
  VII : Where
  
  goods produced in India by an undertaking have been exported to a country
  
  outside India, then the goods so exported shall not be taken into account in
  
  computing for the purposes of this clause –
  (i) the
  
  total goods that are produced in India by that undertaking; or
  (ii) the
  
  total goods that are produced, supplied or distributed in India or any
  
  substantial part thereof;
  (da)
  
  "financial institution" means, -
  (i) a
  
  public financial institution specified in or under section 4A of the Companies
  
  Act, 1956 (1 of 1956);
  (ii) a
  
  State Financial, Industrial or Investment Corporation;
  (iii) the
  
  State Bank of India or a subsidiary bank as defined in the State Bank of India
  
  (Subsidiary Banks) Act, 1959 (38 of 1959);
  (iv) a
  
  nationalised bank, that is to say, a corresponding new bank as defined in
  
  clause (d) of section 2 of –
  (i) the
  
  Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of
  
  1970); or
  (ii) the
  
  Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of
  
  1980);
  (v) the
  
  General Insurance Corporation of India established in pursuance of the
  
  provisions of section 9 of the General Insurance Business (Nationalisation)
  
  Act, 1972 (57 of 1972);
  (vi) the
  
  Industrial Reconstruction Corporation of India; or
  (vii) any
  
  other institution which the Central Government may, by notification, specify in
  
  this behalf;
  (e)
  
  "goods" means goods as defined in the Sale of Goods Act, 1930 (3 of
  
  1930), and includes, -
  (i)
  
  products manufactured, processed or mined in India;
  (ii)
  
  shares and stocks including issue of shares before allotment;
  (iii) in
  
  relation to goods supplied, distributed or controlled in India, goods imported
  
  into India;
  (ee)
  
  Omitted by the MRTP (Amdt.) Act, 1991, w.e.f. 27-9-1991;
  (ef)
  
  "group" means a group of –
  (i) two or
  
  more individuals, association of individuals, firms, trusts, trustees or bodies
  
  corporate (excluding financial institutions), or any combination thereof, which
  
  exercises, or is established to be in a position to exercise, control, directly
  
  or indirectly, over any body corporate, firm or trust; or
  (ii)
  
  associated persons.
  Explanation
  
  : For
  
  the purposes of this clause –
  (I) a
  
  group of persons who are able, directly or indirectly, to control the policy of
  
  a body corporate, firm or trust, without having a controlling interest in that
  
  body corporate, firm or trust, shall also be deemed to be in a position to
  
  exercise control over it;
  (II)
  
  "associated persons" –
  (a) in
  
  relation to a director of a body corporate, means -
  (i) a
  
  relative of such director, and includes a firm in which such director or his
  
  relative is a partner;
  (ii) any
  
  trust of which any such director or his relative is a trustee;
  (iii) any
  
  company of which such director, whether independently or together with his
  
  relatives, constitutes one-fourth of its board of directors;
  (iv) any
  
  other body corporate, at any general meeting of which not less than one-fourth
  
  of the total number of directors of such other body corporate are appointed or
  
  controlled by the director of the first mentioned body corporate or his
  
  relative, whether acting singly or jointly;
  (b) in
  
  relation to the partner of a firm, means a relative of such partner and
  
  includes any other partner of such firm; and
  (c) in
  
  relation to the trustee of a trust, means any other trustee of such trust;
  (III)
  
  where any person is an associated person in relation to another, the latter
  
  shall also be deemed to be an associated person in relation to the former;
  (f)
  
  "India" means, for the purposes of this Act, the territories to which
  
  this Act extends;
  
  (ff) & (fff)
  (g)
  
  "inter-connected undertakings" means two or more undertakings which
  
  are inter-connected with each other in any of the following manner, namely :-
  (i) if one
  
  owns or controls the other.
  (ii) where
  
  the undertakings are owned by firms, if such firms have one or more common
  
  partners.
  (iii)
  
  where the undertakings are owned by bodies corporate, -
  (a) if one
  
  body corporate manages the other body corporate, or
  (b) if one
  
  body corporate is a subsidiary of the other body corporate, or
  (c) if the
  
  bodies corporate are under the same management, or
  (d) if one
  
  body corporate exercises control over the other body corporate in any other
  
  manner;
  (iv) where
  
  one undertaking is owned by a body corporate and the other is owned by a firm,
  
  if one or more partners of the firm, -
  (a)           hold,
  
  directly or indirectly, not less than fifty per cent of the shares, whether
  
  preference or equity, of the body corporate, or
  (b)
  
  exercise control, directly or indirectly, whether as director or otherwise,
  
  over the body corporate,
  (v) if one
  
  is owned by a body corporate and the other is owned by a firm having bodies
  
  corporate as its partners, if such bodies corporate are under the same
  
  management,
  (vi) if
  
  the undertakings are owned or controlled by the same person or by the same
  
  group,
  (vii) if
  
  one is connected with the other either directly or through any number of
  
  undertakings which are inter-connected undertakings within the meaning of one
  
  or more of the foregoing sub-clauses.
  Explanation
  
  1 : For
  
  the purposes of this Act, two bodies corporate, shall be deemed to be under the
  
  same management, -
  (i) if one
  
  such body corporate exercises control over the other or both are under the
  
  control of the same group or any of the constituents of the same group; or
  (ii) if
  
  the managing director or manager of one such body corporate is the managing
  
  director or manager of the other; or
  (iii) if
  
  one such body corporate holds not less than one-fourth of the equity shares in
  
  the other or controls the composition of not less than one-fourth of the total
  
  membership of the board of directors of the other; or
  (iv) if
  
  one or more directors of one such body corporate constitute, or at any time
  
  within a period of six months immediately preceding the day when the question
  
  arises as to whether such bodies corporate are under the same management,
  
  constituted (whether independently or together with relatives of such directors
  
  or the employees of the first mentioned body corporate) one-fourth of the
  
  director of the other; or
  
  (v) if the same individual or individuals belonging to a group, while holding
  
  (whether by themselves or together with their relatives) not less than
  
  one-fourth of the equity shares in one such body corporate also hold (whether by
  
  themselves or together with their relatives) not less than one-fourth of the
  
  equity shares in the other; or
  (vi) if
  
  the same body corporate or bodies corporate belonging to a group, holding,
  
  whether independently or along with its or their subsidiary or subsidiaries,
  
  not less than one-fourth of the equity shares in one body corporate, also hold
  
  not less than one-fourth of the equity shares in the other; or
  (vii) if
  
  not less than one-fourth of the total voting power in relation to each of the
  
  two bodies corporate is exercised or controlled by the same individual (whether
  
  independently or together with his relatives) or the same body corporate
  
  (whether independently or together with its subsidiaries); or
  (viii) if
  
  not less than one-fourth of the total voting power in relation to each of the
  
  two bodies corporate is exercised or controlled by the same individuals
  
  belonging to a group or by the same bodies corporate belonging to a group, or
  
  jointly by such individual or individuals and one or more of such bodies
  
  corporate; or
  (ix) if
  
  the directors of the one such body corporate are accustomed to act in
  
  accordance with the directions or instructions of one or more of the directors
  
  of the other, or if the directors of both the bodies corporate are accustomed
  
  to act in accordance with the directions or instructions of an individual,
  
  whether belonging to a group or not.
  Explanation
  
  II : If
  
  a group exercises control over a body corporate, that body corporate and every
  
  other body corporate, which is a constituent of or controlled by, the group
  
  shall be deemed to be under the same management.
  Explanation
  
  III : If
  
  two or more bodies corporate under the same management hold, in the aggregate,
  
  not less than one-fourth equity share capital in any other body corporate, such
  
  other body corporate shall be deemed to be under the same management as the
  
  first mentioned bodies corporate.
  Explanation
  
  IV : In
  
  determining whether or not two or more bodies corporate are under the same
  
  management, the shares held by financial institutions in such bodies corporate
  
  shall not be taken into account.
  Illustration
  Undertaking
  
  B is inter-connected with undertaking A and
  Undertaking
  
  C is inter-connected with undertaking B.
  Undertaking
  
  C is inter-connected with undertaking A; if
  Undertaking
  
  D is inter-connected with undertaking C,
  Undertaking
  
  D will be inter-connected with undertaking B and
  Consequently
  
  with undertaking A; and so on.
  (h)
  
  "member" means a member of the Commission :
  (i)
  
  "monopolistic trade practice" means a trade practice which has, or is
  
  likely to have, effect of, -
  (i)
  
  maintaining the prices of goods or charges for the services at an unreasonable
  
  level by limiting, reducing or otherwise controlling the production, supply or
  
  distribution of goods or the supply of any services or in any other manner.
  (ii)
  
  unreasonably preventing or lessening competition in the production, supply or
  
  distribution of any goods or in the supply of any services,
  (iii)
  
  limiting technical development or capital investment to the common detriment or
  
  allowing the quality of any goods produced, supplied or distributed, or any
  
  services rendered, in India to deteriorate;
  (iv)
  
  increasing unreasonably, -
  (a) the
  
  cost of production of any goods; or
  (b)
  
  charges for the provision, or maintenance, of any services;
  (v)
  
  increasing unreasonably, -
  (a) the
  
  prices at which goods are, or may be, sold or re-sold, or the charges at which
  
  the services are, or may be, provided; or
  (b) the
  
  profits which are, or may be, derived by the production, supply or distribution
  
  (including the sale or purchase) of any goods or by the provision of any
  
  services;
  (vi)
  
  preventing or lessening competition in the production, supply or distribution
  
  of any goods or in the provision or maintenance of any services by the adoption
  
  of unfair methods or unfair or deceptive practices;
  (j)
  
  "notification" means a notification published in the Official
  
  Gazette;
  (ja)
  
  "owner", in relation to an undertaking, means an individual, Hindu
  
  undivided family, body corporate or other association of individuals, whether
  
  incorporated or not, or trust (whether public or private or whether religious
  
  or charitable) who or which owns or controls, the whole or substantially the
  
  whole of such undertaking, and includes any associated person who is a
  
  constituent of a group and who has the ultimate control over the affairs of
  
  such undertaking;
  (k)
  
  "prescribed" means prescribed by rules made under this Act;
  (l)
  
  "price", in relation to the sale of any goods or to the performance
  
  of any services, includes every valuable consideration, whether direct or
  
  indirect, and includes any consideration which in effect relates to the sale of
  
  any goods or to the performance of any services although ostensibly relating to
  
  any other matter or thing;
  (ll)
  
  "produce" includes manufacture and all its grammatical variations and
  
  cognate expressions shall be construed accordingly;
  (m)
  
  "register" means the register kept by the Director General under
  
  section 36;
  (n)
  
  "registered consumers' association" means a voluntary association of
  
  persons registered under the Companies Act, 1956 (1 of 1956), or any other law
  
  for the time being in force which is formed for the purpose of protecting the
  
  interests of consumers generally and is recognised by the Central Government as
  
  such association on an application made in this behalf in such form and such
  
  manner as may be prescribed;
  (o)
  
  "restrictive trade practice" means a trade practice which has, or may
  
  have, the effect of preventing, distorting or restricting competition in any
  
  manner and in particular, -
  (i) which
  
  tends to obstruct the flow of capital or resources into the stream of
  
  production, or
  (ii) which
  
  tends to bring about manipulation of prices, or conditions of delivery or to
  
  affect the flow of supplies in the market relating to goods or services in such
  
  manner as to impose on the consumers unjustified costs or restrictions;
  (p)
  
  "retailer", in relation to the sale of any goods, includes every
  
  person, other than a wholesaler, who sells the goods to any other person; and
  
  in respect of the sale of goods by a wholesaler, to any person for any purpose
  
  other than re-sale, includes that wholesaler;
  (r)
  
  "service" means service which is made available to potential users
  
  and includes the provision of facilities in connection with banking, financing,
  
  insurance, chit fund, real estate, transport, processing, supply of electrical
  
  or other energy, boarding or lodging or both, entertainment, amusement or the
  
  purveying of news or other information, but does not include the rendering of
  
  any service free of charge or under a contract of personal service.
  Explanation
  
  : For
  
  the removal of doubts, it is hereby declared that any dealings in real estate
  
  shall be included and shall be deemed always to have been included within the
  
  definition of "service";
  (s)
  
  "trade" means any trade, business, industry, profession or occupation
  
  relating to the production, supply, distribution or control of goods and
  
  includes the provision of any services;
  (t)
  
  "trade association" means a body of persons (whether incorporated or
  
  not) which is formed for the purpose of furthering the trade interests of its
  
  members or of persons represented by its members;
  (u)
  
  "trade practice" means any practice relating to the carrying on of
  
  any trade, and includes –
  (i)
  
  anything done by any person which controls or affects the price charged by, or
  
  the method of trading of, any trader or any class of traders,
  (ii) a
  
  single or isolated action of any person in relation to any trade;
  (v)
  
  "undertaking" means an enterprise which is, or has been, or is
  
  proposed to be, engaged in the production, storage, supply, distribution,
  
  acquisition or control of articles or goods, or the provision of services, of
  
  any kind, either directly or through one or more of its units or divisions,
  
  whether such unit or division is located at the same place where the
  
  undertaking is located or at a different place or at different places.
  Explanation I : In this clause, -
  (a)
  
  "article" includes a new article and "service" includes a
  
  new service;
  (b)
  
  "unit" of "division", in relation to an undertaking
  
  includes, -
  (i) a
  
  plant or factory established for the production, storage, supply, distribution,
  
  acquisition or control of any article or goods;
  (ii) any
  
  branch or office established for the provision of any service.
  Explanation
  
  II : For
  
  the purposes of this clause, a body corporate, which is, or has been, engaged
  
  only in the business of acquiring holding, underwriting or dealing with shares,
  
  debentures or other securities of any other body corporate shall be deemed to
  
  be an undertaking
  Explanation
  
  III : For
  
  the removal of doubts, it is hereby declared that an investment company shall
  
  be deemed, for the purposes of this Act, to be an undertaking; 47]
  (x)
  
  "wholesaler", in relation to the sale of any goods, means a person
  
  who sells the goods, either in bulk or in large quantities, to any person for
  
  the purposes of re-sale, whether in bulk or in the same or smaller quantities;
  (y) words
  
  and expressions used but not defined in this Act and defined in the Companies
  
  Act, 1956 (1 of 1956), have the meanings respectively assigned to them in that
  
  Act.