Sun Pharmaceuticals Industries Ltd vs Union Of India 2024 INSC 521 – Drugs (Price Control) Order – Dealer

Drugs (Price Control) Order, 1995 – A ‘dealer’, as defined in the DPCO, would be a wholesaler or retailer who undertakes the purchase or sale of the drug while a ‘distributor’, as defined thereunder, would include a distributor of the drugs or a stockist appointed by a manufacturer. Though the definition of ‘wholesaler’ under Paragraph 2(y) of the DPCO blurs the distinction between a ‘dealer’ and a ‘distributor’, by including a dealer as well as a stockist appointed by a manufacturer, the fact remains that a ‘distributor’ under Paragraph 2(c) of the DPCO has links with the manufacturer directly while a ‘dealer’ does not, as he obtains his supply of drugs from the said ‘distributor’. It is obvious that the definitions of ‘distributor’ and ‘dealer’ under the DPCO are not mutually exclusive and it is very much possible in this scheme that a ‘distributor’ may play a dual role by becoming a ‘wholesaler’ or ‘retailer’ also and thereby satisfy the definition of ‘dealer’ under Paragraph 2(d) of DPCO.

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