SYNBIOTICS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) . Petitioner is manufacturer of various drugs and pharmaceutical products including streptomycin. The controversy which is the subject matter of this writ petition is whether a manufacturer of bulk drug can be compelled to sell his product only at the pooled price and not at a lower price and whether the manufacturer of bulk drug can be compelled to deposit into the Drugs Prices Equalisation Account excess of the pooled price over the retention price though such excess amount has not. been realised as the manufacturer has sold the bulk drug at retention price.

(2.) It was contended before me by Mr.S. Ganesh, learned senior counsel for the petitioner that by notification issued under and in pursuance of Drugs (Prices Control) Order, 1970 which has been issued pursuant to Section 3(1) of the Essential Commodities Act, Central Government fixed from time to time the pooled price as well as retention price at which imported and indigenous streptomycin were to be sold. Some of the provisions of the said order which are relevant and material are reproduced below :

(3.) The Central Government issued on 2.4.1979 an order fixing the pooled price for streptomycin and also the retention price for petitioner and other manufacturers. The pooled price for streptomycin was fixed at Rs.475 per k.g. and retention price was fixed at Rs.449.71 per k.g. for petitioner no.l and Rs.498 for other manufacturers. .....