ISSUE:
Whether “undertaking” under the Monopolies and Restrictive Trade Practices Act, 1969 (“MRTP Act”), includes enterprises that are not engaged in the production, supply, distribution or control of goods or provision of some service?
Whether the acquisition of 100% of a company’s shares amounts to the acquisition of an undertaking owned by the company?
RULE:
An enterprise can be characterized as an “undertaking” under the MRTP Act only when it is engaged in the production, supply, distribution or control of goods or provision of service.
By purchasing 100% of the shares of a company, one acquires control over and rights to manage the company. This does not amount to the acquisition of an undertaking owned by the company, as the same cannot be equated with the purchase of the company itself.