Control of Prices Act, 1932

Proceedings consequential on inspector's report and price certificates.

36.—(1) Where a report is made to the Controller by an inspector on a complaint referred to him for investigation and the Controller, after consideration of such report, is of opinion that such complaint is well founded but is also of opinion that it is desirable in the public interest that an investigation should be held by the Commission into, in case such complaint related to a retail price, the retail prices or, in case such complaint related to a wholesale price, the wholesale prices charged for the commodity to which such complaint relates in the area where the seller mentioned in such complaint carries on business, the Controller shall not take any steps under the next succeeding sub-section but shall refer the matter to the Commission who shall forthwith make an investigation into, in case such complaint related to a retail price, the retail and wholesale prices charged for such commodity in such area (including the area where such seller carries on business) as the Commission thinks fit, or in case such complaint related to a wholesale price, the wholesale prices charged for such commodity in such area (including the area where such seller carries on business) as the Commission thinks fit and such investigation shall be deemed to be a price investigation within the meaning of Part III of this Act, and the provisions of that Part relating to the following matters, that is to say, proceedings consequential on price investigation, price orders, validity of price orders, revocation and amendment of price orders, and offences in relation to price orders, shall apply accordingly.

(2) Subject to the provisions of the immediately preceding sub-section where a report is made to the Controller by an inspector on a complaint referred to him for investigation and the Controller, after consideration of such report, is of opinion that such complaint is well founded, the following provisions shall have effect, that is to say:—

(a) the Controller shall serve on the seller mentioned in such complaint a notice in the prescribed form—

(i) stating the nature of such complaint, and

(ii) stating that in the opinion of the Controller such complaint is well founded, and

(iii) in case such complaint relates to a sale or offering for sale retail, specifying the price which in the opinion of the Controller is a reasonable retail price for the commodity the retail price of which was the subject of such complaint, and

(iv) in case such complaint relates to a sale or offering for sale wholesale, specifying the price which in the opinion of the Controller is a reasonable wholesale price for the commodity the wholesale price of which was the subject of such complaint, and

(v) requiring such seller within ten days after the service of such notice to give to the Controller an undertaking in writing to charge in future a reasonable price for the commodity mentioned in such notice, and

(vi) if such complaint relates to a sale, requiring such seller within ten days after the service of such notice to pay to the complainant the difference between the price the subject of such complaint and the price specified in such notice as the reasonable price;

(b) if such seller complies with the requirements of such notice, the following provisions shall have effect, that is to say:—

(i) the Controller shall take no further steps in relation to such complaint (in this paragraph referred to as the investigated complaint),

(ii) if another complaint is made in relation to a sale or offering for sale whether retail or wholesale by such seller on a date previous to the date to which the investigated complaint relates the Controller shall take no proceedings under this Part of this Act in relation to such other complaint;

(c) if such seller does not comply with the requirements of such notice and such complaint relates to a sale or offering for sale retail the Controller shall subject to the provisions of the next following sub-section do the following things, that is to say:—

(i) make a certificate (in this Part of this Act referred to as a price (retail) certificate) in the prescribed form and containing the prescribed particulars certifying the price which, in the opinion of the Controller, is a reasonable retail price to be charged by persons selling such commodity,

(ii) serve a copy of such certificate on such seller,

(iii) publish a copy of such certificate in a newspaper or newspapers circulating in the district where the commodity the price of which was the subject of such complaint was sold or offered for sale;

(d) if such seller does not comply with the requirements of such notice and such complaint relates to a sale or offering for sale wholesale, the Controller shall subject to the provisions of the next following sub-section do the following things, that is to say:—

(i) make a certificate (in this Part of this Act referred to as a price (wholesale) certificate) in the prescribed form and containing the prescribed particulars certifying the price which, in the opinion of the Controller, is a reasonable wholesale price to be charged by persons selling such commodity,

(ii) serve a copy of such certificate on such seller,

(iii) publish a copy of such certificate in a newspaper or newspapers circulating in the district where the commodity the price of which was the subject of such complaint was sold or offered for sale.

(3) The Controller shall, before making, serving, or publishing a price (retail) certificate or a price (wholesale) certificate in relation to a commodity, serve on the seller to whom such certificate, if made, would relate a notice in the prescribed form stating his intention to make, serve, and publish such price certificate, and whenever any such notice is served on any person the following provisions shall have effect, that is to say:—

(a) the Controller shall not in any case make, serve or publish any such certificate in relation to such person until the expiration of fourteen days from the date of the service of such notice;

(b) if before the expiration of the said fourteen days, such person applies in the prescribed manner to the Commission to investigate, in case such certificate, if made, would relate to a retail price, the retail prices or, in case such certificate, if made, would relate to a wholesale price, the wholesale prices, charged for such commodity in the area where such person carries on business and states in such application the grounds on which it is based, the following provisions shall have effect, that is to say:—

(i) the Commission shall forthwith hold a preliminary inquiry into such application, and

(ii) the Controller shall not, in any case make, serve, or publish such certificate until the Commission have concluded such inquiry, and

(iii) if, as the result of such inquiry, the Commission are satisfied that such application is bona fide made and that it is desirable in the public interest that such investigation should be made, the following provisions shall have effect, that is to say, the Controller shall not make, serve, or publish such price certificate, and the Commission shall forthwith make an investigation into, in case such certificate, if made, would relate to a retail price, the retail and wholesale prices charged for such commodity in such area (including the area where such person carries on business) as the Commission think fit, or in case such certificate, if made, would relate to a wholesale price, the wholesale prices charged for such commodity in such area (including the area where such person carries on business) as the Commission thinks fit, and such investigation shall be deemed to be a price investigation within the meaning of Part III of this Act, and the provisions of that Part relating to the following matters, that is to say, proceedings consequential on price investigation, price orders, validity of price orders, revocation and amendment of price orders, and offences in relation to price orders, shall apply accordingly, and

(iv) if, as the result of such inquiry, the Commission are not so satisfied, the Controller shall at the conclusion of such inquiry make, serve, and publish such price certificate.

(4) Every certificate under this section shall specify the period during which such certificate is to remain in force, and every such certificate shall, subject to the provisions of this section, remain in force for the period so specified.

(5) Every certificate under this section shall specify the following things, that is to say:—

(a) the date (which shall not be earlier than the date of publication thereof in pursuance of sub-section (1) of this section) on which such certificate is to come into force, and

(b) the area to which such certificate is to apply.

(6) No certificate under this section shall state the name of the seller upon whom such certificate is to be served.

(7) The Controller may and, if he is satisfied that the relevant wholesale price has substantially advanced since such certificate was made, shall revoke a certificate under this section and thereupon such certificate shall cease to be in force.

(8) Whenever a price (retail) order is made in relation to a commodity, every price (retail) certificate relating to such commodity which is in force in any place to which such order applies shall cease to be in force.

(9) Whenever a price (wholesale) order is made in relation to a commodity, every price (wholesale) certificate relating to such commodity which is in force in any place to which such order applies shall cease to be in force.

(10) Any notice or certificate required by this section to be served on any person may be served by delivering it to such person or by sending it by registered post to such person at the premises where he carries on business.