Court rules dual pricing was permissible before January 2018, quashing proceedings as an abuse of legal process.
In a significant ruling, the Jammu & Kashmir and Ladakh High Court has quashed the criminal proceedings against Hindustan Coca-Cola Beverages Pvt Ltd concerning alleged dual pricing of its products. The case, initially filed by the Assistant Controller Legal Metrology, Reasi, accused the company of contravening Section 18 of the Legal Metrology Act, 2009, along with specific rules under the Legal Metrology (Packaged Commodities) Rules, 2011. The High Court, presided over by Justice Rajnesh Oswal, delivered the judgment on July 3, 2026, highlighting the absence of any statutory prohibition against dual pricing at the time of the alleged offense on October 25, 2016.
The controversy stemmed from an inspection conducted at a Domino's Pizza outlet in Katra, where a 600 ml Coca-Cola bottle was being sold for Rs. 60, compared to Rs. 35 in the open market. This price disparity led to allegations of overcharging by Rs. 25, sparking legal action against the beverage company. However, the petitioner argued that no legal framework existed then to prevent manufacturers from declaring different Maximum Retail Prices (MRPs) for identical products across varied retail environments.
Justice Oswal's judgment underscored the absence of any statutory mandate against dual pricing before January 1, 2018. The court noted that Rule 18(2A), which explicitly restricts dual pricing practices, was only introduced through an amendment that came into effect in 2018. Therefore, the alleged actions of the company in 2016 were lawful at that time. The court further emphasized that applying penal provisions retrospectively to criminalize actions that were legal at the time of commission is impermissible.
The ruling also highlighted that the allegations did not demonstrate any sale above the declared MRP or any violation of mandatory packaging declarations. The court concluded that continuing the criminal proceedings would constitute an abuse of the legal process, thereby quashing the complaint against Hindustan Coca-Cola Beverages Pvt Ltd.
Legal experts view this judgment as pivotal in reinforcing the principle that penal laws cannot be applied retrospectively and highlight the necessity for clear legislative frameworks governing commercial practices.
Bottom line:-
Legal Metrology Act, 2009 - A manufacturer cannot be prosecuted for declaring different MRPs for identical products if the alleged incident occurred before the statutory prohibition on dual pricing came into force on 01.01.2018.
Statutory provision(s): Legal Metrology Act, 2009 Section 18; Legal Metrology (Packaged Commodities) Rules, 2011 Rules 2(bc), 6, 18(2A).
