Horlicks Verdict Reserved

The Supreme Court yesterday reserved its judgment in the Horlicks promotion case, which will settle the jurisdiction of the Monopolies and Restrictive Trade Practices Commission in prohibiting games of chance and lotteries in sales campaigns.

The commission had restrained the company from carrying on its scheme and repeating it. Against its order the company appealed to the Supreme Court. Under the scheme, some three per cent of the Horlicks bottles sold in Delhi would carry a coupon which entitled the buyer to get some gift from the company. The commission conducted an enquiry into the scheme by its directorate general. It found prima facie case against the company.

The appeal was heard by a division bench consisting of Justice S P Bharucha and Justice G B Pattanaik. The company argued that the scheme was only for a few months and it was not a lottery. The price of the bottles was not raised and the buyer was not charged extra for the chance of winning a prize.

It was not an unfair trade practice as held by the commission as the buyer did not lose anything and it was not against public interest. None of the conditions under the MRTP Act to attract the charge of unfair trade practice existed in this case, it was argued.