Delhi High Court - Orders
M/S Sun Pharmaceutical Industries Ltd vs National Pharmaceutical Pricing ... on 15 October, 2025
Author: Sachin Datta
Bench: Sachin Datta
$~107
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 15840/2025
M/S SUN PHARMACEUTICAL INDUSTRIES LTD .....Petitioner
Through: Mr. Rajiv Nayar, Sr. Adv., Mr.
Shyam Kumar and Ms. Iqra Khan,
Advs.
versus
NATIONAL PHARMACEUTICAL PRICING AUTHORITY
.....Respondent
Through: Mr. Nishant Gautam, CGSC.
CORAM:
HON'BLE MR. JUSTICE SACHIN DATTA
ORDER
% 15.10.2025 CM APPL. 64878/2025 (Exemption)
1. Allowed, subject to all just exceptions.
2. Application stands disposed of.
W.P.(C) 15840/2025, CM APPL. 64877/2025
3. The petitioner has filed the present petition inter-alia assailing a Demand Notice dated 05.06.2025, issued by the National Pharmaceutical Pricing Authority (NPPA), whereby, a sum of Rs.96,37,025/- was demanded, (comprising of the balance overcharge amount and interest thereon) in respect of the sale of petitioner's product 'SIMVOTIN 40 mg' during the period between July, 2014 to July, 2017. The said amount was demanded allegedly on account of the petitioner manufacturing/marketing 'SIMVOTIN 40 mg' tablets at a price higher than the notified price (MRP) under paragraph 19 of the Drugs (Prices Control) Order, 2013 (hereinafter referred as "the DPCO, 2013").
4. Learned senior counsel for the petitioner assails the aforesaid order on This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/10/2025 at 21:47:58 the following grounds:
(i) It is contended that the impugned demand is ex facie violative of the principle of the natural justice having been passed without affording the petitioner any effective prior notice or an opportunity of hearing or disclosing the basis and methodology adopted for computation. It is pointed out that the previous correspondence with regard to the impugned demand rested with the petitioner's communication dated 18.06.2021. It is submitted that neither has any sale whatsoever taken place thereafter nor any communication / clarification has been received from the NPPA. It is submitted that it was only after a gap of almost four years that the NPPA has suddenly issued the impugned demand letter.
(ii) It is submitted that the impugned demand is in utter contravention of the judgment of the Allahabad High Court in T.C. Health Care vs. Union of India, 2010 SCC OnLine All 834, which was also affirmed by the Supreme Court in Civil Appeal No. 4687/2010 vide judgement dated 15.11.2019. In terms thereof, the statutory taxes and trade margins, not retained by the manufacturer are to be excluded while working out the liability of the petitioner. Learned senior counsel for the petitioner submits that the legal position in this regard is unaffected even under the DPCO, 2013.
(iii) It is submitted that the impugned order erroneously cites the judgment of this Court in Union of India vs. Bharat Serums passed in LPA 118/2023 to hold that the judgment in T.C. Health Care (supra) is inapplicable inasmuch the aforesaid judgment of the Division Bench of this Court does not deal with the aspect of This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/10/2025 at 21:47:58 exclusion of taxes and trade margins, although it deals with other issues in the context of DPCO, 2013.
5. Issue notice.
6. Learned counsel, as aforesaid, as aforesaid, accepts notice on behalf of the respondent.
7. Let reply be filed within a period of four weeks. Rejoinder thereto, if any, be filed within two weeks thereafter.
8. In the meantime, considering the aforesaid aspects, no coercive steps shall be taken by the respondent pursuant to the impugned demand till the next date of hearing. However, the same shall be subject to the petitioner depositing with the respondent, the overcharge amount of Rs.29,97,189/-, referred to in paragraph-9 of the impugned demand notice, within a period of four weeks from today.
9. List on 10.02.2026.
SACHIN DATTA, J OCTOBER 15, 2025/cl This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 20/10/2025 at 21:47:58