JOHNSON AND JOHNSON LTD Vs. NATIONAL PHARMACEUTICALS PRICING AUTHORITY
LAWS(DLH)-2008-7-4
HIGH COURT OF DELHI
Decided on July 01,2008

JOHNSON AND JOHNSON LTD. Appellant
VERSUS
NATIONAL PHARMACEUTICALS PRICING AUTHORITY Respondents

JUDGEMENT

- (1.) THE petitioner challenges the legality of two orders dated 20. 4. 1998 and 01. 11. 2002 by the first respondent. It also seeks a direction to disclose to it complete and detailed cost data with all relevant break ups and particulars relating to price fixation made on 07. 08. 1996 and consider and dispose of its application for review in accordance with law after granting it suitable opportunity of hearing.
(2.) THE facts are briefly set out hereafter that the petitioner at the relevant time was manufacturing "raricap" iron tablets. The product was originally manufactured by one M/s. Ethnor Ltd. It is contended that the said m/s. Ethnor Ltd. had on 24. 11. 1989, applied to the Central Government, for price approval of the Tablet at Rs. 25. 01 per pack. Sometime in 1994, M/s Ethnor Ltd apparently was merged or taken over by the petitioner, which continued to market the product. On 07. 08. 1996, exercising powers under Para 8 of the Drugs (Price control) Order, 1995 (hereafter called "dpco-95") the Central Government revised the price of Raricap Tablets, for a pack of 40 and fixed the cost at Rs. 16. 24.
(3.) THE petitioner by its letter dated 19. 8. 1996, claimed that the price was approved at Rs. 25. 01 in 1989 under the then existing Control Order i. e. DPCO-87. It claimed that the price of the tablet continued to remain unchanged and even as on date i. e. 19. 8. 1996 the price at which it was sold was as per the price earlier approved by the Central Government. The petitioner sought for cost data and other material to enable it to prefer a review to the Central government under Para 22 of the DPCO-95. This letter was followed up with subsequent letters and telegrams dated 24. 9. 1996, 08. 10. 1996, 31. 10. 1996 and 21. 11. 1996. The petitioner also contended that the input costs, for the product, had not decreased.;


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