UNION OF INDIA Vs. CIPLA LTD.
LAWS(SC)-2016-10-37
SUPREME COURT OF INDIA
Decided on October 21,2016

UNION OF INDIA Appellant
VERSUS
CIPLA LTD. Respondents

JUDGEMENT

MADAN B.LOKUR,J. - (1.) (a) The issues that arise in this batch of appeals are as follows: (i) Whether the notification dated 13th July, 1999 issued by the Central Government under Paragraph 7 of the Drugs (Prices Control) Order, 1995 prescribing the norms for conversion cost, packing charges and process loss of raw materials (other than packing materials in conversion) and packing and process loss of packing materials in packaging was issued mechanically and without any application of mind or is it valid in law? (ii) Whether the notifications dated 12th July, 2000, 12th July, 2001, 12th July, 2002 and 11th July, 2003 issued by the Central Government under Paragraph 7 of the Drugs (Prices Control) Order, 1995 re-notifying the norms prescribed on 13th July, 1999 were issued mechanically, without any application of mind and without re-determining the norms every year as required by the Drugs (Prices Control) Order, 1995 and are valid in law? (iii) Whether various notifications issued by the Central Government fixing the retail price or ceiling price of formulations under Paragraphs 8 and 9 (as the case may be) of the Drugs (Prices Control) Order, 1995 without determining the norm for cost of packing material as required by Paragraph 7 of the Drugs (Prices Control) Order, 1995 are valid in law? (iv) Whether fixing the retail price of a formulation under Paragraph 8 of the Drugs (Prices Control) Order, 1995 without first fixing the sale price of a bulk drug under Paragraph 3 of the Drugs (Prices Control) Order, 1995 utilized in the manufacture of a formulation is valid in law?
(2.) We are primarily concerned with the Drugs (Prices Control) Order, 1995 (the DPCO 1995) and for historical reasons with the Drugs (Prices Control) Order, 1970 (the DPCO 1970), the Drugs (Prices Control) Order, 1979 (the DPCO 1979) and the Drugs (Prices Control) Order, 1987 (the DPCO 1987). All these Orders were issued by the Central Government in exercise of powers conferred by Section 3 of the Essential Commodities Act, 1955. The appeals before us
(3.) The principal appeal before us and in which the leading submissions were made is Civil Appeal No. 329 of 2005 filed against Cipla. This appeal is directed against the judgment and order dated 3rd March, 2004 passed in Writ Petition (C) No.41214 of 2003 by the Division Bench of the Allahabad High Court.;


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