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 and Registration (DG for brief) under Sec.10 (a) (iii) of the Monopolies and 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 Sec.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 Sec.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 Sec.33 (1) (e) of the Act.

(3.) Summarising the charges, a Notice of Enquiry (NOE) was issued by the Commission on 15th Jan. , 1996 calling upon the respondent to appear in the Commission and submit its defence.