Legal Question in Business Law in India

HI,

What I understood from your query is that The pharma company is getting the product manufactured from you. Under Pharmaceuticals this concept is known as Loan License.

For understanding :

"A licence issued by a licensing authority to a applicant who does not have his own arrangements for manufacture but who intends to avail himself of the manufacturing facilities owned by another licencee�� is called loan licence"

So in order to obtain such license from the authority the Pharma Company have to show an agreement ( Loan License Agreement) entered between you and the company which would incorporate the understanding between the two parties regarding the whole activity.

The basic Clauses which needs to be taken care of would be the consideration Clause where you have to be clear about the mode , manner, and amount of consideration to be received from the pharma company.

Next would be the Tax Clause, where in the obligation to pay the taxes would be defined and who will bear the taxes like excise, VAT, etc.

The most important clause would be the Arbitration Clause or the Dispute resolution clause, where in the jurisdiction of the court be defined or Arbitration in case of any dispute between the parties.

These just the basic clauses.. apart from these there may be many clauses which may affect both the parties. That can only be analysed and commented upon , once the whole business module between you and Pharma Company is understood.

For more clarifications you may contact the under signed

Jeevesh Mehta

Ph: 9811617186

[email protected]