Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1995 Drugs (Prices Control) Order |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Drugs (Prices Control) Order, 1995 - - Paragraphs 7, 8, 9: Notification dated 13. 0 7.1999 - Issuance by the Central government under Paragraph 7 prescribing of 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 - Validity of - Held: Notification is valid - They were issued after due application of mind and based on available material duly examined by an expert body - Notifications were not arbitrarily issued nor were they discriminatory in any manner at all nor were they issued mechanically. c D Notifications dated 12.07.2000, 12.07.2001, 12.07.2002 and 11.07.2003 - Issuance by Central Government under Paragraph 7 re-notifYing the norms prescribed on 13.07.1999 - Validity of- Held: Are valid and were not issued mechanically or without any application of mind and it was not necessary to re-determine the norms every year as required by DPCO, 1995. E Issuance of notifications by the Central Government fixing the retail price or ceiling price of formulations under Paragraphs 8 and 9 without determining the norm for cost of packing material as required by Paragraph 7 - Validity of - Held: Are valid. F Fixation of retail price of a formulation under Paragraph 8 without first fixing the sale price of a bulk drug under Paragraph 3 utilized in the manufacture of a formulation - Validity of - Held: ls valid in law. G Judicial review: Power of - Notification issued by Central Government under Paragraph 8 or 9 - Held: Action of a repository of power is also amenable to judicial review if it is contrary to or violates the mandatory requirement of a subordinate legislation - IfCentral Government does not adhere to the formula given in Paragraph 7 and fixes the retail price or ceiling price of formulations, notification issued under Paragraph 8 or 9 is liable to quashed being contrary to law - However, no instance pointed out to use the power of judicial review and quash the notifications - Drugs (Prices Control) Order, 1995 - Paragraphs 7, 8, 9. Alternative remedy: Availability of - Manufacturer or formulator aggrieved by fixing of retail or ceiling price of any for111ulation - Alternative remedy available under the DPCO 1995 - Submission that norms not prescribed to 111ake effective case for revision or review of price notification - Held: lf any manufacturer or formulator had preferred a revision or review application, all necessary material would have been 111ade available to the complainant for an effective representation - None of the parties were precluded, in fact, some of them did - In view of the availability of an alternative and efficacious remedy under the DPCO 1995, the writ petitions by the manufacturers and formulators ought not to have been entertained by the concerned High Courts, but it is left at that - Drugs (Prices Control) Order, 1995. Forum shopping: Court to adopt a functional test vis-a-vis the litigation and the litigant - It is to be seen whether there is any functional similarity in the proceedings between one Court and another or whether there is so111e sort of subterji1ge on the part of a litigant - Functional test would determine whether a litigant is indulging in forum shopping or not - On facts, on examination of relief claimed by 'C' Company in the different High Courts, it is found that they have no substantive connection whatsoever with the relief claimed in the Allahabad High Court - 'C' company s petitions do not fall under any category of forum shopping.Practice and procedure: Practice of placing scanty material before the High Courts, and placing volumes of documents before this Court - Held: Such practice degrade the importance of proceedings in the High Court and could subsequently embarrass the High Court which might inadvertently base its decision on insufficient material resulting in possibility of an incorrect decision which is liable to be set aside - Such practice is to be discouraged - For better adjudication of disputes, it is appropriate for all litigants to place 011 record all the material before the court of first instanceInterim order: Matters pertaining to sale of formulations at retail price or ceiling price fixed by Central Government through notifications issued under the DPCO - Issuance of interim order - Held: Matters having financial and economic implications, where public interest. is involved, the Court ought to be circumspect in granting any interim relief - Consequence of an interim order might be quite serious to society and consumers and might cause damage to public interest and have a long term impact - Drugs (Prices Control) Order, 1995. A Drugs and medicines: Working of drug industry - Interference by the courts - Held: Courts have to be extremely cautious in interfering in any manner whatsoever with the working of the drug industry - Not only is the drug industry in the country extremely large with heavy financial stakes but there is lot at stake in it not only for the industry but also for the consumers - Any interference by the Courts would have wide ranging repercussions not only in commercial terms but also for the people of the country. |
Judge | Hon'ble Mr. Justice Madan Bhimarao Lokur |
Neutral Citation | 2016 INSC 981 |
Petitioner | Union Of India & Ors. |
Respondent | M/s. Cipla Ltd. & Anr. |
SCR | [2016] 7 S.C.R. 523 |
Judgement Date | 2016-10-21 |
Case Number | 329 |
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