GLAXO SMITHKLINE PHARMA. LTD. Vs. UOI

JUDGEMENT

(1.) This writ petition, instituted under Article 226 of the Constitution of India by GlaxoSmithKline Pharmaceuticals Ltd, assails communications dtd. 5/10/2004 and 17/12/2004, issued to the petitioner by the National Pharmaceutical Pricing Authority (NPPA) (impleaded as Respondent 2) in exercise of the powers conferred by Para 13 of the Drug (Price Control) Order 1995 ('the DPCO 1995").

(2.) The communication dtd. 5/10/2004 directed the petitioner to deposit Rs.54,844,247.00' with the Department of Chemicals and Petrochemicals (Respondent 1). The subsequent order dtd. 17/12/2004 rejected the petitioner's representation against the order dtd. 5/10/2004 and reiterated the demand of Rs.5,59,32,906.00'.

(3.) The demand of Rs.5,59,32,906.00- consists of a principal amount of Rs.4,35,46,347.00 and Rs.1,23,86,559.00' towards interest. By orders passed by this Court in the present proceedings, enforcement of the demand was stayed, conditional on the petitioner depositing the principal amount with this Court and furnishing bank guarantee for the interest.