AMBALAL SARABHAI ENTERPRISES LTD Vs. UNION OF INDIA
LAWS(DLH)-1983-3-34
HIGH COURT OF DELHI
Decided on March 09,1983

AMBALAL SARABHAI ENTERPRISES LIMITED Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

PRAKASH NARAIN - (1.)The primary question to be decided in this petition under Article 226 of the Constitution of India, filed by Ambalal Sarabhai Enterprises Limited and another, is whether a sale effected in excess of the retention price, fixed under the Drugs (Prices Control) Order, 1979, thereinafter referred to as the DPCO) in the absence of any maximum, common or pooled price being fixed, would be violative of Clauses 3 and 4 of the DPCO.
(2.)The facts of the case, so far as the same are relevant to decide the above issue, may first be noticed.
(3.)The first petitioner is a company registered under the Companies Act and is engaged in the manufacture of various bulk drugs, pharmaceuticals and other products, including the bulk drug Vitamin C. It is not disputed that the company is a wholly Indian company with petitioner No. 2 being not only its principal officer but also a shareholder and a Director. The predecessor-in-interest of the first petitioner, M/s. Sarabhai Merek Limited, commenced production of Vitamin 'C' in or about 1961. In due course of time petitioner No. 1 took over the said activity and has thus been manufacturing Vitamin C continuously since 1961. M/s. Jayant Vitamins Limited (for short hereinafter referred to as JVL) also started manufacturing the bulk drug Vitamin C after establishing a factory in or about Sept., 1970 and commencing production from 1974. M/s. Hindustan Antibiotics Ltd. (for short HAL), a Government of India undertaking also started manufacturing the bulk drug Vitamin C but it is common case that it has almost discontinued the production of this bulk drug. Thus, the only two companies which manufacture bulk drug Vitamin C in India are the first petitioner and JVL. The petitioner's plant is in Baroda and JVL's plant is in Pune.
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