Union Of India vs Glaxo India Ltd. & Anr

The Supreme Court addressed the legality of the Central Government's demand for drug price adjustments based on the Drug Prices Equalization Account, specifically questioning the validity of the price fixation order dated 20.11.1986 under the Drugs (Price Control) Order, 1979. The Court held that the supersession of a notification does not automatically imply retrospective effect unless explicitly stated, thereby ruling that the demand for payment by Glaxo India Ltd. was unjustified. The Court emphasized the need for adherence to the principles of natural justice in price fixation processes under the DPCO.