Legal Question in Banking Law in India

Sir, we are a pharma export company. We get our products manufactured in other companies under loan license. We ordered packing materials lable n ctns. To printer with condition some advance n balance against delivery. We paid him advance as per agreed terms but he failed to give the delivery on agreed date. Due to this our order was canceled. After some time we negotiated with new buyer and agreed to sell them on discounted price. Meanwhile manufacturerinformed us that packing material supplied by the printer is of inferior quality. We communicated with the printer so his person inspected the same n agreed to replace the same. He beg us to give the balance payment as he is in need of money n promissed to replace the pkg material. We issued them cheque with condition that you supply the pkg material n depisit cheque. But he failed to supply the material on time so we stopped the check payment. Till now he has not supplied the materials. He filrd case in 138 agaibst us. Please guide next course of action.

Asked on 8/05/13, 12:36 pm

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

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06.08.2013

Dear Sir / Madam,

The Bureau of Industrial Costs and Prices (BICP) called the National Pricing Authority (NPA) and the Drug Prices Control Order, 1977 (DPCO) have issued certain guidelines and regulations to manufacturers on the extent, manner and procedures in which drugs can be manufactured on loan license basis. Being at the mercy of loan license parties, makes one go around in circles, because each one points the finger at the other. That is precisely why Simrone Pharmaceutical Industries Limited, Palghar (SPIL) had to close shop for good. Let the Court decide on the matter.

Regards,

Answered on 8/06/13, 8:47 am

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