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Cadila vs Union

High Court Of Gujarat|21 March, 2012

JUDGMENT / ORDER

Heard learned senior counsel Shri Mihir Thakur for the petitioner. Learned counsel has invited this Court's attention to the notification under which the Drug Prices are controlled, and as per terms of those notification, the drug for which impugned coercive steps have been ordered is not falling, and the drug for which the impugned order issued is in fact the result of invention which is clearly amounting to "New Delivery System". This invention where under the marked difference made out is 'Drug Delivery System' in the human body, which is acknowledged by all the concerned and the company has registered patent and the company has been granted exemption for a period of five years from year 2010, considering it to be new delivery system. Therefore, the impugned order is absolutely not justified.
The contention of learned counsel prima facie appears to be having substance as had the invention being treated not new invention and is part of "Sustained SR/CR/TR/ Retard Control Release" then the exemption which is granted to the petitioner from year 2010 would not have been granted by the competent authority. Therefore, in view of this submission and in view of the fact that atleast from year 2010 till the period of five years is over, the petitioner company is granted exemption from that price control order, and on the basis of the same facts the recovery prima facie appears to be not justified.
However, the Court in the instant case is not inclined to pass any interim order without attaching any condition. Hence notice pending admission returnable on 19/4/2012. Till the returnable date the respondents are restrained from initiating any coercive steps on a condition of petitioner company depositing sum of Rs.10,07,85,390/- (Rs. Ten Crores seven lakhs eighty five thousand and three hundred ninety only), by way of Demand Draft in favour of Pay & Accounts Officer, Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, New Delhi, within a period of twenty days from today. In case, if the said amount is not deposited within twenty days from today, it will be open to the authorities to take appropriate legal action, irrespective of pendency of this petition. The amount if deposited, then, the receipt be placed on record of the petition.
The amount so deposited is ordered to be kept in a separate account and be deposited by respondent no.2 in a nationalized bank, so that in case of petitioner succeeding in this petition, same could be refunded without subjecting the petitioner to further suffering of any loss. Direct service permitted.
[ S.R. BRAHMBHATT, J ] /vgn Top
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Title

Cadila vs Union

Court

High Court Of Gujarat

JudgmentDate
21 March, 2012