Construction Delay Not Unfair Practice

IN THE SUPREME COURT

The Supreme yesterday set aside the judgment of the Monopolies and Restrictive Trade Practices (MRTP) Commission against the Rajasthan Housing Board and ruled that mere delay in delivering built-up houses or hiking their prices would not amount to unfair trade practice under the MRTP Act.

Some persons who had booked houses under a scheme of the board had complained that the board was indulging in restrictive trade practices and unfair trade practice under the MRTP Act. The commission agreed with them and held the board guilty on both counts, though the evidence was still to be examined.

Overruling the commission, the division bench consisting of Justice M B Shah and Justice R P Sethi stated that mere delay in handing over possession of the house would not amount to unfair trade practice.

The commission has to find out whether the board had misled the buyers on the period of construction or the cost. The commission also has to consider "whether the board has adopted unfair method or deceptive practice for the purpose of promoting the sale, use or supply of any goods or for the provision of any services," the judgment said. Unless these are proved, the board cannot be penalised for unfair trade practice. Therefore, the Supreme Court asked the commission to reconsider the petitions against the board.

Court asked not to close evidence

The Supreme Court yesterday directed the special court in Chennai not to close evidence against AIADMK leader J Jayalalitha in the colour television scam. The apex court will hear today the former Chief Minister's plea regarding calling some of her witnesses in the case and pass appropriate orders.

The three-judge bench headed by Justice K T Thomas passed the order on an appeal filed by Jayalalitha against the Madras High Court order upholding the trial court direction to close the examination of witnesses in the case.

Jayalalitha's grievance was that the trial court had closed the evidence in the case without giving a chance to some of her witnesses to depose. When the judges asked for the list of witnesses, her counsel said it would be provided today. The Tamil Nadu government did not object to the examination of more witnesses.