FRANCO INDIAN PHARMACEUTICALS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) AN order dated 11th August 1996 passed by the Department of Chemicals and Petrochemicals, Drug Prices Equalisation Account (DPEA) Cell, Government of India, Respondent No.1 herein, directing the Petitioner to deposit a sum of Rs. 29,09,141 under Para 7(2)(a) of the Drugs (Prices Control) Order, 1979 (,,DPCO, 1979) read with para 17(1)(a)(i) thereof on account of overcharging of the prices of Penivoral Plain Tablets and Penivoral Forte Tablets during the period from 12th March 1981 to 30th April 1987 into the DPEA together with interest of Rs. 48,26,047.99 under Section 7A of the Essential Commodities Act, 1955 (ECA) within a period of 30 days, has been challenged by the Petitioner in this writ petition. Factual Background

(2.) THE Petitioner company is engaged in the manufacture of pharmaceutical formulations including, inter alia, certain formulations called Penivoral and Penivoral Forte (,,Penivoral formulations) based on Penicillin. It is stated that the prices of the said Penivoral formulations were declared as a package under the ,,alternative method of price fixation under the DPCO, 1970 and were regulated and controlled in order to ensure that the Petitioner earned only a reasonable margin of profit on the whole. It is stated that the prices fixed under the DPCO 1970 in respect of the said Penivoral Formulations continued to remain in force after the coming into force of DPCO, 1979.

(3.) THE Petitioner filed a review application against the above price fixation order dated 12th March 1981 and also asked the Respondent No.1 to disclose the relevant cost data and explanation on the basis of which the said prices were fixed. It is stated that the Respondent No.1 failed to disclose the data. THE Petitioner had to file Writ Petition (Civil) No.1070 of 1981 in this Court challenging the above price fixation order/ notification dated 12th March 1981.