M/S T.C.HEALTHCARE P. LTD. vs UNION OF INDIA

The Supreme Court upheld the Allahabad High Court's decision rejecting the writ petitions challenging the notifications dated 11th July 2006 and 30th April 2009 that imposed ceiling prices on drug formulations, specifically Frusemide. The Court found that the price fixation was not arbitrary and complied with the provisions of the Drugs (Price Control) Order, 1995, particularly Para 7, which allows for such regulation. The Court affirmed that the Central Government had sufficient basis for the price fixation, dismissing the appellants' claims of non-application of mind and lack of cost analysis.