2002 (11) TMI 358

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....loss or injury to the consumer of goods or service is a sine qua non for initiation of a proceeding thereunder. One H.D. Murzello made a complaint before the Director General of Investigation and Registration alleging unfair trade practice against the appellant herein as regards an advertisement issued by them which appeared in "The Times of India" dated 16-9-1986 to the following effect: "Aerocol's family background : Aerocol's credibility as a wonder wood adhesive stems from 2 facts - An addition to the Araldite and Acrolite family, it is a product from Hindustan Ciba Geigy; Already a market leader in UK, it is known for living up to its promise." On the said complaint, the Director General was directed to make a prelimi....

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....as regards maintainability thereof, whereupon the Commission, framed the following issues : "(1)Is the enquiry not legally maintainable ? (2)Did the respondent indulge in any unfair trade practice as alleged in the N.I.E. and PIR ? (3)In case Issue No. 2 is decided in the affirmative, is the unfair trade practice prejudicial to the public interest or to the interest of any consumer or consumers generally ? (4)Relief." The Commission accepted the arguments raised on behalf of the counsel for the Director General and held that the words "thereby causes loss or injury to the consumer" would not mean actual loss or injury. The Commission in aid of its aforementioned finding, relied upon the decision of larger Bench in Colgate Pal....

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....to the consumers. Furthermore from a perusal of the notice dated 30-7-1987 itself it would appear that definite allegations were made therein that by reason of the impugned action on the part of the Appellant, the consumer suffered loss or injury. The Commission, therefore, in our opinion, committed a manifest error in holding that the actual loss or injury need not be caused to the consumers. This aspect of the matter has been considered by this Court in H.M.M. Ltd. v. Director General Monopolies and Restrictive Trade Practices Commission [1998] 6 SCC 485, wherein it was held : "For holding a trade practice to be an unfair trade practice, therefore, it must be found that it causes loss or injury to the consumer. Insofar as prizes ....