The case study relates to information filed by
UTV Software Communications Limited (the
informant) alleging the Motion Pictures
Association , Delhi (opposite party) has abused
its dominant position in contravention of
provisions of section 4 of the Act.
Motion Picture Association, Delhi
• The Motion picture association of Delhi is registered under section 25 of
the Companies Ac, 1956. The MPA as a body has been formed to promote
and assist the business of production, distribution , exhibition of films and
also to provide a common platform to its members to meet and address
• Abuse of Dominant Position.
• Forces to sign Producer
• Acquiring Form.
• Restricts performance of
business vide its MOA.
• Anti – competitive with regards to registration of film.
• Problems created for release of ‘Peepli Live’ and ‘No one
killed Jessica’, ‘7 khoon maaf’ and ‘Dhobi Ghaat’.
• Rules of body Anti-Competitive.
• Restricts freedom to contract.
• Unreasonable terms and conditions.
• Unfair and discrimminatoory restrictions.
• Membership essential to carry out business smoothly.
• Cessation of membership on dealing with non members.
• Restrictive rules.
• Prescribes pro-forma , acquiring form.
• Restriction on other sources such as satellite/cable/internet
• Tie in agreements.
• Pressure through letters and circulars by MPA.
• Association imposes penalty for breaking of agreement.
• Activities seem to be restrictive and violative of the act.
Reply on behalf of MPA , Delhi
• Denies all allegations.
• Argues that membership is voluntary no coercion.
• UTV wants to take benefits of membership as well as
complain against it.
• No commercial activity.
• Rules jointly framed by all members.
• DG never mentioned UTV as its member.
• No independent investigation.
Reply on behalf of Informant
• MPA formed as a body to promote the business of distribution not
to dominate it.
• Refusal to register voilates section 4 – abuse of dominant position.
• MPA not a charitable organisation but a virtual cartel.
• Three other companies have already fled complaint regarding
The ultimate authority must always rest with the individual's own
reason and critical analysis.
• Issue 1 : Whether MPA is an ‘enterprise’ within the meaning of
section 2(h) of the act and if the answer to this is affirmative, can
its acts and conducts be said to be violative of section 4 of the act?
• Issue 2: Whether the rules and regulations, acts and conducts of
MPA are subject matter of examination under section # of the act?
• Issue 3: Whether the rules , regulations and byelaws of MPA are
The MSMED Act 2006
• The Importance of Small and Medium Enterprises
(SMEs) in any economy cannot be overlooked as
they form a major chunk in the economic activity of
~They have unique advantages due to:-
• their size
• their comparatively high labor-capital ratio
• need a shorter gestation period
• focus on relatively smaller markets
• need lower investments
• ensure a more equitable distribution of national income
• facilitate an effective mobilization of resources of capital and skills which
might otherwise remain unutilized and
• Stimulate the growth of industrial entrepreneurship.
• According to a UNIDO report, 4 supports for SMEs are generally
based on three assumptions.
– it sustains a broad and diversified private sector and creates
employment and thus benefits the country as a whole
– second, a strong SME sector will not emerge without support from
the state, but they suffer disadvantages in the markets because of
– the programs aimed at smallest enterprises, have been justified more
in terms of their welfare impact than their economic efficiency.
Indian SME at a Glance
• In India, SME sector accounts for around 95% of the industrial
units, 40% of the value added in the manufacturing sector
output, 34% of exports and provides direct employment to 20
million persons in around 3.6 million registered SME units.The
SME sector in India contributes to about 7% of India’s GDP during
2002-03. Now, the question is, Can it overtake the invasion of
foreign companies through their
innovative, quality, affordable/reasonable and readily available
(small industries development bank of India)
We will be discussing specific measures taken by SIDBI in relation to helping
• promotion, financing and development of Industries in the small scale
sector and coordinating the functions of other institutions engaged in
• SIDBI retained its position in the top 30 Development Banks of the World
in the latest ranking ofThe Banker, London.
• It also provides funds to the professional and self-employed persons
setting up small-sized professional ventures.
• Focus Segments of SIDBI
– Micro: Investment in plant & machinery up to Rs.25 lacs.
– Small: Gross Machinery Investment up to Rs 5 crore.
– Medium: Gross Machinery Investment less than or equal to Rs 10 crore
• Service Sector
Healthcare, Hospitality, leisure, entertainment, IT/IT enabled
businesses, etc. (Project Cost limit up to Rs 2500 Million)
• Infrastructure Sector
Power, Roads, Ports,Telecom, MSME infrastructure, etc.
• SIDBI: Direct Loans for MSME Segment
• Term Loans for MSME Units and Service Sector Entities Eligible Projects
– New projects; expansion / modernization / diversification
projects, marketing requirements, working capital margin, etc. of well run
– Land acquisition and construction of factory building with or without
additional plant and machinery, for units relocating to industrial areas.
• Need based
– Interest: Competitive (PLR -1 to + 2.5) – depending on the rating of the customer – Current
– Security: Flexible, including collateral free lending for loans up to Rs.5 Million under
– has since been increased to Rs.10 Million).
– Other Benefits: Dovetailing with GoI sponsored schemes such as CLCSS,TUFS, IDLSS and
– Processing subsidy based on eligibility.
Main Benefits under Govt. sponsored Schemes :
• Credit Linked Capital Subsidy Scheme (CLCSS):
• Technology Up-gradation Fund Scheme (TUFS):
• Integrated Development of Leather Sector Scheme:
• Food Processing Industries:
• Scheme for Energy Saving in MSME Sector (JICA – Line of Credit)
• Receivables Finance Scheme (RFS)
• Invoice Discounting Scheme