Cartel - Definition - Law Dictionary Home Dictionary Definition cartel

Definition :

Cartel [fr. Cartella, It., pasteboard], a piece of pasteboard with some inscription on it, hung up in some place, and to be removed, Floria's Dict., voce 'Cartella.' Hence a written challenge openly hung up; afterwards any written challenge. See CHARTEL.

An agreement between or conventional grouping of producers of raw materials or goods.

The cartel is an association of producers who by agreement among themselves to control production, sale and prices of the product to obtain a monopoly in any particular industry or commodity. Analysing the object of formation of a cartel in other words, it amounts to an unfair trade practice which is not in the public interest. The intention to acquire monopoly power can be spelt from formation of such a cartel by some of the producers, Union of India v. Hindustan Development Corpn., (1993) 3 SCC 499: AIR 1984 SC 988 (1008). [Constitution of India, Arts. 299, 14, 19]

'Cartel' includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services. [Competition Act, 2000 (12 of 2003), s. 2(c)]

Cartel, includes an association of producers, sellers, distributors, traders or service providers who by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale of price of or trade in goods or provisions of services, B.S.N. Joshi & Sons Ltd. v. Nair Coal Services Ltd., 2006 (10) JT 131 [As per Advanced Law Lexicon, 3rd Edn., by P. Ramanatha Aiyar]