"We do not think that any kind of restrictive trade practices is found to be adopted by HLL in terminating redistribution stockistship of certain firms," MRTPC chairman AN Divecha and member RK Anand said.

"If redistribution stockists, as a part of a non-cooperation movement against HLL and its products, do not allow HLL's products to reach ultimate consumers through retailers or otherwise, they would be liable to lose their redistribution stockistship," the bench said adding that HLL was justified in terminating its agreement.

On the issue of HLL obtaining blank cheques or demand drafts from redistribution stockists for supply of goods, the commission said the two parties had entered into an agreement on that regard. It also pointed out the stockistship had not been cancelled on the grounds that the firms did not comply with the terms of payment.

It said the insistence on obtaining a blank cheque may be because an appropriate amount could be filled in on the basis of the invoice for supply of goods, rejecting the charge of unfair trade practice against HLL.

The complainant, all Kerala Distributors' Association, affiliated to the Kerala Vyapari Vyavsaya Ekopana (Samiti), had charged HLL with restrictive trade practices based on the termination of redistribution stockistship of several firms belonging to the association.