DIRECTOR GENERAL OF INVESTIGATION Vs. GERMAN REMEDIES LTD.

JUDGEMENT

(1.) GERMAN Remedies Ltd., (respondent hereafter) is facing this enquiry which commenced with an application preferred by the Director General of Investigation & Registration (DG for brief) under Section 10(a)(iii) of the Monopolies & Restrictive Trade Practices Act, 1969 (Act for brief). The respondent is engaged in the business of manufacture and sale of pharmaceutical products. For the purpose of sale and distribution of its products, it appointed distributors. The respondent issued circular letters to its distributors informing them of certain bonus schemes/trade offers.

(2.) THE DG filed an application under Section 10(a)(iii) of the Act alleging that the said circular letters issued to the distributors have certain terms and conditions which are restrictive in nature and which constitute restrictive trade practices under Section 33(1) of the Act. In particular circular letters issued to the distributors on 25th Jan., 1995 relating to "Dulcolax Tablets 100s" and "Proluton Depot 250 mg" offer certain bonuses and benefits in connection with or reason of dealings between the respondent and the distributors attracting Section 33(1)(e) of the Act.

(3.) INITIALLY the respondent moved an application on 13th Feb., 1996 stating that in similar enquiries against the same respondent, the Notices of Enquiry were discharged by the Commission and praying that the Notice of Enquiry in this case may also be discharged. Alternatively the respondent prayed that the NOE may be amended by deleting the charges relating to "Dulcolax Tablets 1 00s" which constituted the subject matter of previous enquiries in this Commission.