Disputed share transfer and heirship claims do not by themselves create a restrictive trade practice under the MRTP Act.

Refusal to register a share transfer was not treated as a restrictive or unfair trade practice where the shares remained in the deceased shareholder's name, rival claims to title and heirship were pending, and a partition dispute was sub judice. The applicable framework recognised that refusal could be justified in specified circumstances under securities law, and the aggrieved party had a separate statutory remedy under company law. On that basis, no material established any prohibited trade practice by the company, and the review was not maintainable under the MRTP Act.

---

---

Issues: Whether the refusal to transfer shares, in the face of a dispute regarding title and heirship, constituted a restrictive trade practice or unfair trade practice under the Monopolies and Restrictive Trade Practices Act, 1969, warranting review of the earlier order.

Analysis: The record showed that the shares stood in the name of the deceased shareholder, that rival claims over heirship and title were pending, and that a partition dispute was also sub judice. In such circumstances, the company's refusal to record transfer could not be treated as inherently restrictive or unfair. The statutory framework under section 22A of the Securities Contracts (Regulation) Act, 1956 permitted refusal in specified circumstances, and the aggrieved party had a separate remedy under section 111 of the Companies Act, 1956. No material was shown to establish any prohibited trade practice by the company so as to attract the MRTP Act.

Conclusion: The refusal to transfer the shares did not amount to a restrictive or unfair trade practice under the MRTP Act, and the review application was not maintainable on that basis.

Ratio Decidendi: A refusal to transfer shares arising from a genuine dispute over title or heirship, where an alternative statutory remedy exists under company law, does not by itself constitute a restrictive or unfair trade practice under the MRTP Act.

---