UNION OF INDIA & ANR. vs CYNAMIDE INDIA LTD. & ANR.

The Supreme Court held that the fixation of maximum prices for bulk drugs under Paragraph 3 of the Drugs (Prices Control) Order, 1979, is a legislative activity and not subject to the principles of natural justice as per Section 3(2)(c) of the Essential Commodities Act, 1955. The Court ruled that the High Court erred in quashing the notifications on the grounds of natural justice, affirming that the review process under Paragraph 27 does not constitute judicial proceedings. The appeal by the Union of India was allowed, reinstating the price fixation notifications.