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As the voice of the Indian restaurant industry, we represent 100000+ restaurants & an industry valued @ USD 4 billion. Whether a chain or independent restaurant, the NRAI is here to help every step of the way. Join us!

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Delhi court says MRP not applicable for restaurants

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The association has been engaged in the MRP case in Delhi High Court for more than a decade.  In 2007, the judgment of Single Judge had held that provisions of MRP would not be applicable on hotels and restaurants, and members could therefore charge more than MRP.  Union of India had filed appeals against this judgment.  The appeals have been disposed of by the Division Bench of Delhi High Court consisting of the Hon’ble Chief Justice and Hon’ble Mr. Justice Rajiv Sahai Endlaw on 11th February 2015.

The Hon’ble Court has held that no penal action can be taken by the Authorities under the old law.  Accordingly, all notices to our members threatening legal / coercive action for alleged breach of law before this judgement have become void and unenforceable. Since the old Act has been replaced by the new Legal Metrology Act 2009, no action can be taken under the old law.

Rule 3 of the Legal Metrology (Packaged Commodities) Rules, 2011 made under the new Act, states that the provisions of chapter relating to packages intended for retail sale would not apply to packaged commodities meant for industrial or institutional consumers. The said Rule in explanation includes hotels/restaurants under industrial and institutional consumers.

In this regard therefore, members may decide on whether to continue charging above MRP as they have been doing so in their restaurants.  However, it is informed that with closure of the case under the old act, protection accorded by the 2007 judgement during pendency of the case, is not available anymore.  Any fresh action/case would need to be contested in court by the member, or circumstances thereof for the association to decide on the same.  In case authorities are ill advised to take action under the new Rules for sale of packaged commodities above MRP, the same can be contested effectively as the benefit of the Supreme Court judgements relied upon by the learned Single Judge would still be available with our legal counsel.

For further support, please contact: Prakul Kumar, NRAI Office

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