Glaxo Smithkline Pharmaceutical Ltd. ... vs Union Of India

The Supreme Court interpreted Paragraph 28 of the Drugs (Prices Control) Order, 1987, alongside the exemption notification dated 28th February 1992, determining that the exemption granted to Glaxo India for Betamethasone Disodium Phosphate was valid only until 31st December 1994. The Court held that post-exemption, the company was required to adhere to government-fixed prices, and the failure to do so constituted a violation of Paragraph 9(3) of the DPCO, leading to a recovery of overcharged amounts under Paragraph 13 of the DPCO, 1995. The appeal was dismissed, affirming the government's authority to enforce price controls post-exemption period.