GLAXO SMITHKLINE PHARMACEUTICAL LTD. THROUGH ITS SENIOR GENERAL MANAGER LEGAL AND SECRETARIAL 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, which allowed the Central Government to exempt certain drug manufacturing units from price control. The Court held that the exemption for Glaxo India Ltd. for Betamethasone Disodium Phosphate was valid only until 31st December 1994, and any pricing beyond this period constituted a violation of the DPCO provisions. Consequently, the appeal was dismissed, affirming the government's authority to enforce price controls post-exemption period.