SC Denies Compensation for Misrepresentation in Goods & Services under MRTPC Act, 1969.

The gaps between MRTPC Act,1969 before its repeal in 2009, continue to come to the fore in different matters. An appellant’s claim, for Unfair Trade Practice because of misrepresentation in delay of handing over the possession of the apartment and levying arbitrary extra charges was not allowed.“Section 12-B of MRTP Act empowers the Commission to grant compensation only when any loss or damage is caused to a consumer as a result of a monopolistic, restrictive or unfair trade practice.”, said SC.

At the time of repeal, the Ministry of Consumer Affairs was conscious that the part relating to competition was rightly included to Competition Act, 2002, but the domain relating to ‘unfair trade practices’ was left uncovered. Whether the Government is besieged of the matter and attempting to plug these gaps or the situation remains the same as it was in 2009 is not yet known.