Drug and control act 1950 | Essays (university) Law

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Date - 16.07.2020

Day - Day 16

Legal Legislation

DRUGS (CONTROL) ACT, 1950

INTRODUCTION

Drugs (Control) Act, 1950 is an Act that was enacted by the Parliament of India. This Act

fixes the pricing of drugs and supply, sales, and distribution in the country. This Act consists

of 1 chapter further divided into 20 sections.

EXPLANATION OF SECTIONS

Section 1 → Short title and extent

This section states that this Act applies to the territories which were comprised in Part C

states before the 1st of November, 1956 and it is named the Drugs (Control) Act, 1950.

Section 2 → Interpretation

(1) This section defines the terms dealer, drug, offer for sale, and producer.

(a) The term ‘Dealer’ means any person who carries on the business of selling

any kind of drugs either on his own or via another person. The business be

maybe wholesale or retail;

(b) The term ‘Drug’ is defined under Section 3(b) of the Drugs Act, 1940;

another person for the sale of it;

(d) The term ‘Producer’ also a manufacturer.

(2) A person is said to have possessed drugs-

(a) when it is held by another person on behalf of that person or vice versa;

(b) In spite of that is mortgaged to another person.

Section 3 → Drugs to which this Act applies

This Act applies to all the drugs which are declared as a drug by the Central Government in

the Official Gazette via a notification.

Section 4 → Fixing of maximum prices and maximum quantities which may be held or

sold

(1) By a notification in the Official Gazette, the Chief Commissioner may fix in regards to

any drug-

(a) the maximum rate or price which may be charged by the dealer or producer;

(b) the maximum quantity which may be possessed at a time;

transaction.

(2) This subsection states the rate, price, and quantities fixed in regards to any drug

under this section may be different in different areas or different classes of dealers or

producers.

Section 5 → Restrictions on sale, etc, where the maximum is fixed under Section 4

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ALL INDIA LEGAL FORUM

AILF aims at providing a Valuable Contribution to Contemporary legal issues and developments. We aim to bring out a platform to provide resourceful insights on law-related topics for the ever-growing legal fraternity. Date - 16.07. Day - Day 16 Legal Legislation

DRUGS (CONTROL) ACT, 1950

INTRODUCTION

Drugs (Control) Act, 1950 is an Act that was enacted by the Parliament of India. This Act fixes the pricing of drugs and supply, sales, and distribution in the country. This Act consists of 1 chapter further divided into 20 sections.

EXPLANATION OF SECTIONS Section 1 → Short title and extent This section states that this Act applies to the territories which were comprised in Part C states before the 1st of November, 1956 and it is named the Drugs (Control) Act, 1950. Section 2 → Interpretation (1) This section defines the terms dealer, drug, offer for sale, and producer. (a) The term ‘Dealer’ means any person who carries on the business of selling any kind of drugs either on his own or via another person. The business be maybe wholesale or retail; (b) The term ‘Drug’ is defined under Section 3(b) of the Drugs Act, 1940; (c) The term ‘Offer for Sale’ refers to an intimation of the price of the drug to another person for the sale of it; (d) The term ‘Producer’ also a manufacturer. (2) A person is said to have possessed drugs- (a) when it is held by another person on behalf of that person or vice versa; (b) In spite of that is mortgaged to another person. Section 3 → Drugs to which this Act applies This Act applies to all the drugs which are declared as a drug by the Central Government in the Official Gazette via a notification. Section 4 → Fixing of maximum prices and maximum quantities which may be held or sold (1) By a notification in the Official Gazette, the Chief Commissioner may fix in regards to any drug- (a) the maximum rate or price which may be charged by the dealer or producer; (b) the maximum quantity which may be possessed at a time; (c) the maximum quantity which may be sold to any person in a single transaction. (2) This subsection states the rate, price, and quantities fixed in regards to any drug under this section may be different in different areas or different classes of dealers or producers. Section 5 → Restrictions on sale, etc, where the maximum is fixed under Section 4

This section states that no producer or dealer should- (a) This clause states that under Section 4(1)(a) of the Drugs (Control) Act, 1950 no producer or dealer should sell, agree to sell, offer for sale or dispose of in any other manner any kind of drug for a price or at a rate which exceeds the maximum fixed rate. (b) This clause states that under Section 4(1)(b) of the Drugs (Control) Act, 1950 no producer or dealer should possess only the amount fixed by notification at one time; (c) This clause states that under Section 4(1)(c) of the Drugs (Control) Act, 1950 no producer or dealer should sell or agree to sell or offer for sale more quantity of any kind of drug to a person in a single transaction. Section 6 → General limitation on the quantity which may be possessed at anyone time. (1) No person shall have in his possession at any one time a greater quantity of any drug to which this section applies than the quantity necessary for his actual requirements. (2) This section shall apply only to such drugs as the Chief Commissioner would mention for the purpose provided that nothing contained in this section will apply to a dealer or producer in respect of any drug sold or produced by him. Section 7 → Duty to declare possession of excess stocks. Any person having in his possession a quantity of any drug exceeding as permitted under this Act shall forthwith report the fact to the Chief Commissioner or other officer empowered in this behalf by the Chief Commissioner and shall take such action as to the storage, distribution or disposal of the excess quantity as the Chief Commissioner may say. Section 8 → Refusal to sell. Any dealer other than a previously authorised to do so by the Chief Commissioner, without sufficient cause refuses to sell to any person any drug within the limits as to the quantity, if any, imposed by this Act. Section 9 → Cash memorandum to be given of certain sales. (1) Every dealer or producer when selling any drug for cash will if the amount of the purchase is five rupees or more give to the purchaser a cash memorandum containing particulars of the transaction. (2) The particulars to be contained in any such cash memorandum will be prescribed by the Chief Commissioner. (3) The Chief Commissioner can exempt specified areas, classes of dealers or producers, or classes of drugs from the operation of this section. Section 10 → Marking of prices and exhibiting a list of prices and stocks. (1) The Chief Commissioner may direct dealers or producers in general or any dealer to mark any drug-exposed or intended for sale with the sale prices or to exhibit on the premises a price list of drugs held for sale and the quantities of such drugs in his possession. (2) It is mentioned that no dealer can destroy or alter or cause to be destroyed, effaced or altered any label or mark affixed to a drug and indicating the price marked by a producer. Section 11 →Obligation to state price separately on composite offer. Where a dealer or producer makes an offer to enter into a transaction for a consideration to be given as a whole in respect both of a sale of any drug and some other matter, the dealer or producer making the offer will have to give in writing that the price which he assigns to

(b) the furnishing of any such information as may be required concerning the business carried on by any dealer or producer; (c) the inspection of any books of account or other documents belonging to or under the control of any dealer or producer. (3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. Section 18 → Protection of action taken in good faith No suit, prosecution or other legal proceedings shall lie against any person for anything in good faith done or intended to be done under this Act. Section 19 → Saving of Other Laws In addition to and but except for any other statute concerning any subject referred to in this Act, the provisions of this Act shall be valid for the time the Act is in force. Section 20 → Repealed

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Drug and control act 1950, Essays (university) of Law

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ALL INDIA LEGAL FORUM

DRUGS (CONTROL) ACT, 1950

INTRODUCTION