UNION OF INDIA vs GLAXO INDIA LTD.

The Supreme Court addressed the legality of the Central Government's demand for drug price adjustments based on the Drug Prices Equalization Account, specifically examining the validity of price fixation under the Drugs (Price Control) Order, 1979. The Court held that the supersession of a notification does not have retrospective effect unless explicitly stated, thereby ruling that the demand based on the 1989 price fixation was unjustified. Consequently, the Court directed the Central Government to reassess its demand in light of the established legal principles under DPCO 1979.