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Corporate Legal Framework

Notes market therefore; or (ii) technical or scientific development relating to goods or services to the

prejudice of consumers; or (c) indulges in practice or practices resulting in denial of market access;
or (d) makes conclusion of contracts subject to acceptance by other parties of supplementary
obligations which, by their nature or according to commercial usage, have no connection with the
subject of such contracts; or (e) uses its dominant position in one relevant market to enter units,
or protect, other relevant market.

The expression ‘dominant position’ means a position of strength, enjoyed by an enterprise, in
the relevant market, in India, which enables it to (i) operate independently of competitive forces
prevailing in the relevant market; or (ii) affect its competitors or consumers or the relevant market
in its favour.

Task Vikas is a manufacturer of mechanical goods stipulated to his retailers that
they should not sell the goods below the minimum price, nor above the
maximum price nor with variation in the stipulated price. Does this amount to
resale price maintenance?

5.4 Regulation of Combinations (Secs. 5 and 6)

Sec.5 deals with combination of enterprises and persons. The acquisition of one or more enterprises
by one or more persons or acquiring of control or merger or amalgamation of enterprises under
certain circumstances specified below shall be construed as combination. These circumstances

are:
(a) Acquisition of control, shares, voting rights or assets: Any acquisition where (i) the parties
to the acquisition, being the acquirer and the enterprise, whose control, shares, voting
rights or assets has been acquired or are being acquired jointly have (A) either in India, the
assets of the value of more than ` 1000 crores or turnover more than ` 3000 crores; or (B)
in India or outside India, in aggregate, the assets of the value of more than US $ 500 m or
turnover more than US $ 1500 m; or (ii) the group, to which the enterprise whose control,
shares, assets or voting rights have been acquired or are being acquired, would belong
after the acquisition, jointly have or would jointly have – (A) either in India, the assets or
the value of more than ` 4000 crores or turnover more than ` 12000 crores; or (B) in India or
outside India, in aggregate, the assets of the value of more than US $ 2 billions or turnover
more than US $ 6 billions.
(b) Acquisition of control over production, distribution, or trading: Acquiring of control by
a person over an enterprise when such person has already direct or indirect control over
another enterprise engaged in production, distribution or trading of a similar or identical
or substitutable goods or provision of a similar or identical or substitutable service, if (i) the
enterprise over which control has been acquired along with the enterprise over which the
acquirer already has direct or indirect control jointly have – (A) either in India, the assets
of the value of more than ` 1000 crores or turnover more than ` 3000 crores; or (B) in India
or outside India, in aggregate, the assets of the value of more than US $ 500 millions or
turnover more than US $ 1500 millions; or (ii) the group, in which enterprise whose control
has been acquired, or is being acquired, would belong after the acquisition jointly have or
would jointly have (A) either in India, the assets of the value of more than ` 4000 crores or
turnover more than ` 12000 crores; or (B) in India or outside India, in aggregate, the assets
of the value of more than US $ 2 billions or turnover more than US $ 6 billions.
(c) Merger or Amalgamation: Any merger or amalgamation in which (i) the enterprise
remaining after merger or the enterprise created as a result of the amalgamation, as the
case may be, have (A) either in India, the assets of the value of more than ` 1000 crores or
turnover more than ` 3000 crores; or (B) in India or outside India, in aggregate, the assets

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