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2014 (3) TMI 113 - SC - Indian LawsWhether the prices fixed under the Drugs (Prices Control) Order (for short, ‘DPCO’) in respect of drugs/formulations would be operative in respect of all sales subsequent to 15 days from the date of the notification by the Government in the official gazette/receipt of the price fixation order by the manufacturer. - Diametrical opposite view taken by two High Courts, Karnataka and Delhi - Held that:- if the departmental circular provides an interpretation which runs contrary to the provisions of law, such interpretation cannot bind the Court. Karnataka High Court has held that, the contention of the Petitioner that revised prices will not apply to the existing stocks but only to new batches of drugs and formulations to be manufactured after 15 days of the notification cannot be accepted. The provisions of the DPC Order are clear that prices should be revised within 15 days even in regard to the formulations which were manufactured prior to the date of notification or those manufactured within 15 days from the date of notification Delhi High Court has gone more by practical difficulties which a manufacturer may suffer and completely overlooked the scheme of the DPCO which is intended to give benefit to the consumer of the reduced current price of the formulation. - The view of Delhi HC are not acceptable. The above view of the Delhi High Court is fundamentally flawed and clearly wrong. The Karnataka High Court has taken the correct view and the same is upheld. - Decided against the manufacturer/distributor and in favor of Union of India.
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