Government service functions fall within MRTP law, while sovereign functions remain outside its scope for maintainability

A Government department rendering service within the statutory definition of "service" under the Monopolies and Restrictive Trade Practices Act, 1969 is subject to the Act for restrictive, unfair and monopolistic trade practices. The Commission drew a distinction between sovereign functions, which remain outside the Act, and non-sovereign service functions, which fall within its scope. On that basis, the objections to maintainability were rejected and the compensation application was held maintainable against the respondents.

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Issues: Whether the compensation application was maintainable against the respondents under the Monopolies and Restrictive Trade Practices Act, 1969, and whether a Government department rendering service falls within the statutory definition of "service".

Analysis: The objections were founded on the contention that the Act did not apply to the first respondent. The Commission held that, where a Government department renders service within the meaning of section 2(r) of the Monopolies and Restrictive Trade Practices Act, 1969, it is governed by the Act in respect of restrictive, unfair and monopolistic trade practices. The distinction recognised was between sovereign functions, which lie outside the Act, and non-sovereign service functions, which remain subject to the statutory scheme.

Conclusion: The objections to maintainability were rejected and the compensation application was held maintainable against the respondents.

Ratio Decidendi: A Government department rendering service within section 2(r) of the Monopolies and Restrictive Trade Practices Act, 1969 is subject to the Act in respect of non-sovereign functions, while sovereign functions remain outside its scope.

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