The Odisha Drugs (Control) Act, 1950

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The Orissa Drugs (Control) Act, 1950
Act 5 of 1950
Keyword(s):
Dealer, Drug, Offer for Sale, Producer
The Orissa Drugs (Control) Act, 1950 
 
[Published vide Orissa Gazette Part X Dated. 10.3.1950-O.A.No. 5 of 
1950.] 
 
[For Statement of Objects and Reasons, see Orissa G azette Ext. No. 186 
Dated. 19.12.1949 and for Proceedings in the Assemb ly, see Proceedings of 
the Orissa Legislative Assembly, 1950, Vol. XI.] 
 
AN ACT TO PROVIDE FOR THE CONTROL OF THE SALE, SUPPLY AND 
DISTRIBUTION OF DRUGS- WHEREAS IT IS EXPEDIENT TO PROVIDE FOR 
THE CONTROL OF THE SALE, SUPPLY AND DISTRIBUTION OF DRUGS. IT IS 
HEREBY ENACTED AS FOLLOWS: 
 
Statement of Objects and Reasons - With the devaluation of the rupee in September, 
1949, prices of drugs and medicines manufactured in  the hard currency area went up rapidly 
and stocks of such medicines also went underground.  The necessity of preventing hoarding 
and profiteering in these medicines was immediately  felt. As the Assembly was then not in 
session, a self-constrained and comprehensive ordin ance was promulgated with the prior 
concurrence of the Government of India providing fo r control of safe, supply, distribution, 
price-making, limitation on possession and requisit ioning etc. of drugs. It may be mentioned 
that the promulgation of such an ordinance was all the more necessary because other 
provinces promulgated ordinances for the same purpo se and on the same lines. As the need 
(or controlling sale, supply, distribution and prices etc., of drugs and preventing hoarding and 
profiteering in the same is likely to outlive, the ordinance legislation has become necessary. 
 
1.  Short title, extent and commencement - (1) This Act may be called the 
Orissa Drugs (Control) Act, 1950. 
 
(2)  It extends to the whole of the State of Orissa. 
 
(3)      It shall come into force at once. 
 
2.  Definitions - (1) In this Act unless there is anything repugnant in  the subject 
or context 
 
(a)  “dealer” means a person carrying on-, either personally or through any 
other person, the business of selling any drugs whe ther wholesale or 
retail; 
 
(b)  “drug” means any drug as defined in Clause (b) of Section 3 of the 
Drugs Act, 1940 (XXIII of 1940) in respect of which  a declaration has 
been made under Section 3; 
 
(c)  “offer for sale” includes a reference to an intimation by a person o f 
the price proposed by him for a sale of any drug, m ade by the 
publication of a price list, by exposing the drug f or sale in association 
with a mark indicating price, by the furnishing of a quotation or 
otherwise howsoever; 
 
(d)  “producer” includes a manufacturer. (2) A drug shall 
be deemed to be in the possession of a person 
 
 
(i)  when it is held on behalf of that person by another  person or 
when held by that person on behalf of another person; 
 
(ii)  notwithstanding that it is mortgaged to another person. 
 
3.  Drugs to which this Act applies - The State Government may, by 
notification, declare any drug to be a drug to which this Act shall apply. 
 
4.  Fixing of maximum prices and maximum quantities whi ch may be held 
or sold - (1) The State Government may, by notification, fix in respect of any drug 
 
(a)  the maximum price or rate which may be charged by a  dealer or 
producer; 
 
(b)  the maximum quantity which may at anyone time be po ssessed by a 
dealer or producer; 
 
(c)  the maximum quantity- which may in anyone tran saction be sold to any 
person. 
 
(2)  The prices or rates and the quantities fixed in respect of any drug under this 
section may be different in different localities or for classes of dealers or producers. 
 
5.  Restrictions on sale etc. where maximum is fixed un der Section 4 - No 
dealer or producer shall 
 
(a)  sell, agree to sell, offer for sale or otherwise di spose of to any person 
any drug for a price or at a rate exceeding the max imum fixed by 
notification under Clause (a) of Sub-section (1) of Section 4; 
 
(b)  have in his possession at anyone time a quantity of  any drug exceeding 
the maximum fixed by notification under Clause (b) of Sub-section (1) 
of Section 4; or 
 
(c)  sell, agree to sell or offer for sale to any person  in anyone transaction a 
quantity of any drug exceeding the maximum fixed by notification under 
Clause (c) of Sub.-section (1) of Section 4. 
 
6.  General limitation of quantity which may be possess ed at one time - (1) 
No person shall have in his possession at anyone ti me a greater quantity of any drug to which 
this section applies than the quantity necessary for his reasonable needs. ) 
 
(2)  This section shall apply only to such drugs as t he State Government may, by 
order published in the Gazette, specify for the purpose: 
 
Provided that nothing contained in this section sha ll apply to a dealer or producer in 
respect of any drug sold or produced by him. 
 
7.  Duty to declare possession of excess stocks - Any person, having in his 
possession a quantity of any drug exceeding that pe rmitted by or under this Act, shall 
forthwith report the fact to the State Government or any officer empowered in this 
behalf by the State Government and shall take such action as to the storage, distribution or 
disposal of the excess quantity as the State Government may direct. 
 
8.  Refusal to sell - No dealer or producer shall, unless previously auth orised to 
do so by the State Government without sufficient ca use refuse to sell to any person any drug 
within the limits as to quantity, if any, imposed by this Act. 
 
Explanation - The possibility or expectation of obtaining a highe r price for a drug at 
a later date shall not be deemed to be sufficient cause for the purpose of this section. 
 
9.  Cash memorandum to be given of certain sales - (1) Every dealer or 
producer when selling any drug for cash shall, if t he amount of the purchase is five rupees or 
more, in all cases, and, if the amount of the purchase is less than five rupees, when so requested 
by the purchaser, give to the purchaser a cash memo randum containing particulars of the 
transaction. 
 
(2)  The State Government may, by notification, prescrib e the particulars to be 
contained in any such memorandum. 
 
(3)  The State Government may, by notification, exempt s pecified areas, classes of 
dealers or producers or classes of drugs from the operation of this section. 
 
10.  Marking of prices and exhibiting price List- (1) The State Government 
may, by notification and within such date as may be  specified therein, direct dealers or 
producers in general, or any dealer or producer in particular, to mark any drug exposed or 
intended for sale with the sale price or to exhibit  on the premises a price list of drugs held for 
sale and a statement of the quantities of such drug s in his possession and may also by 
notification provide for the manner in which any su ch direction as aforesaid is to be carried 
out. 
 
(2)  The publication of a notification under Sub-sect ion (1) shall be conclusive 
proof of the fact that the persons hereinbefore spe cified had knowledge of the irections and 
the manner of carrying out such directions contained in such notification. 
 
(4)  No dealer shall destroy, efface or alter any label or mark affixed to a drug and 
indicating the price marked by a producer. 
 
11.  Obligation to state price separately on composite o ffer - 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 of some o ther matter, the dealer or producer making 
offer shall state in writing the price which he assigns to that drug, if he is required to do so by 
any person to whom the offer is made, and the offer  shall be deemed for the purposes of this 
Act to be an offer to sell that drug at the price so stated. 
 
12.  Prohibition or regulation of the disposal of drugs - If in the opinion of the 
State Government it is necessary or expedient so to do, they may, by order in writing 
 
(a)  prohibit the disposal of any drug except in such ci rcumstances and 
under such conditions as may be specified in the order; 
 
(b)  direct the sale of any drug to any such dealer or c lass of dealers and in 
such quantities as may be specified in the order; a nd make such further 
orders as appear to be necessary or expedient in co nnection with any 
order issued under this section. 
 
 
13.  Penalties - (1) Whoever contravenes any of the provisions of th is Act or fails 
to comply with any direction made under authority c onferred by this Act shall be punishable 
with imprisonment for a term which may extend to three years or with both. 
 
(2)  A Court convicting any person of an offence puni shable under this Act may 
order that the whole or any part of the stock of dr ugs in respect of which the offence was 
committed, shall be forfeited to the Government. 
 
(3)  It shall be a defence for a person charged with a contravention of any of the 
provisions of this section to prove that in relatio n to the matter in respect of which he is 
charged, he acted in the course of his employment a s a servant or agent of another person on 
the instructions of his employer or of some other specified person. 
 
CASE LAW: The accused person exposed drug for sale without making sale price. In 
such case where no evidence was led to indicate tha t accused had the criminal intention to 
violate the provisions of the Act, he cannot be convicted under Section 13 (1) of the Act: AIR 
1952 Ori. 214. 
 
14.  Offences by corporations - Where a person committing an offence 
punishable under this Act is a company or an associ ation or a body of persons, whether 
incorporated or not, every manager, secretary, agent or other officer or person concerned with 
the management thereof, shall, unless he proves tha t the offence was committed without his 
knowledge or that he has exercised all due diligenc e to prevent its commission, be deemed to 
be guilty of such offence. 
 
15.  Procedure - (1)  No person other than a police officer of or above the rank of 
an Inspector of Police or an officer not being belo w the rank of an Inspector of Police 
authorised in this behalf by the State Government b y notification shall investigate any 
offence under this Act. 
 
(2)  No prosecution for any offence punishable under this Act shall be instituted 
except with the previous sanction of the District Magistrate. 
 
16.  Power of search and seizure - Any person competent to investigate any 
offence under this Act may search any place in which he has reason to believe that an offence 
under this Act has been, or is being committed and take possession of any stock of drugs in 
respect of which the offence has been or is being c ommitted and the provision of the Code of 
Criminal Procedure; 1898, (Act V of 1898) shall, so  far as may be applicable, apply to any 
search or seizure under this Act as they apply to a ny search or seizure made under the 
authority of a warrant issued under Section 93 of that Code. 
 
17.  Power to make rules - (1) The State Government may make rules to carry 
out the purposes of this Act. 
 
(2)  In particular and without prejudice to the gener ality of the foregoing power 
such rules may provide for all or any of the following matters, namely: 
 
(a)  the maintenance by dealers and producers generally or by any dealer or 
producer in particular, of records of all sale and purchase transactions 
made by them; 
 
(b)  the furnishing of any information as may require wi th respect to the 
business carried on by any dealer or producer; 
 
(c)  the inspection of any books of account or other doc uments belonging to 
or under the control of any dealer or produce 
 
18.  Protection of action taken in good faith - No suit, prosecution or other legal 
proceedings shall lie against any person for anythi ng in good faith done or intended to be 
done under this Act, 
 
19.  Saving of other laws - The provisions of this Act shall be in addition to and 
not in derogation of any other law for the time being in force regulating any of the matters dealt 
with in this Act. 

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