JUDGMENT

R.M. Lodha, J.

1. Leave granted in SLP(C) Nos.27241-27242 of 2010.

2. This is a group of six appeals, by special leave, four arising from the judgment of the Karnataka High Court and two from the Delhi High Court.

3. The two High Courts, Karnataka and Delhi, have taken diametrical opposite view on the question whether the prices fixed under the Drugs (Prices Control) Order (for short, ‘DPCO’) in respect of drugs/formulations would be operative in respect of all sales subsequent to 15 days from the date of the notification by the Government in the official gazette/receipt of the price fixation order by the manufacturer.

4. The Drugs (Prices Control) Order, 1995 (for short, ‘DPCO,1995’) was under consideration before the Karnataka High Court whereas the Drugs (Prices Control) Order,1987 (for short, ‘DPCO,1987’) fell for consideration before the Delhi High Court. Although, the sequence of the relevant paragraphs in the two DPCOs differ but the relevant provisions are almost identical. The view of the Karnataka High Court has not been accepted expressly by the Delhi High Court. Since the common arguments have been advanced in this group of matters and the question of law is identical, all these six appeals were heard together and are disposed of by the common order.

5. The facts in civil appeals from Karnataka High Court are these:

The appellant, in the year 1998, was manufacturer of Furoxene Tablets and was also the sole distributor for Dependal-M Tablets and Dependal Suspension manufactured by Kanpha Labs, Bangalore. Dependal-M and Dependal Suspension and Furoxene are formulations of Furozolidine and Metronidazole. On 09.03.1998, a notification was issued by the National Pharmaceutical Pricing Authority (NPCA) under the DPCO,1995, whereby the ceiling price in regard to several formulations consisting of Furozolidine and/or Metronidazole was fixed exclusive of excise duty and local taxes. The notification was gazetted on 09.03.1998 itself.

6. On 10.03.1998, NPCA issued an explanatory notice clarifying that the notification reduces the existing prices and the manufacturers must make effective the prices so fixed/revised, within 15 days (from the date of the notification in the official gazette or receipt of the order of the NPCA) as required under para 14(1) of the DPCO,1995 and also issue necessary revised price lists as required under para 14(3) of that Order.

7. On 14.07.1998, the Inspector of Drugs, Varanasi issued a letter addressed to the appellant-Company that it has not given the effect to the notification dated 09.03.1998.

8. On 22.07.1998, the appellant-Company responded to the letter received from the Inspector of Drugs and brought to his notice that the notification dated 09.03.1998 has been given effect to from the first batch manufactured on the expiry of 15 days from the date of the notification which is permissible under para 14 of the DPCO,1995.

9. On 30.07.1998, Inspector of Drugs sent another letter to the appellant-Company stating therein that under paragraph 16 of DPCO,1995, all sales of the subject formulations would have to be made at the new ceiling price fixed on 09.03.1998 irrespective of the date of manufacture of the subject formulations. The plea of the appellant-Company was, accordingly, rejected by the Inspector of Drugs and he proposed to initiate the prosecution against the appellant-Company under the Essential Commodities Act,1955 (‘EC Act’). This was reiterated by the Inspector of Drugs in his further communication dated 16.11.1998.

10. The appellant-Company then challenged the notices/letters dated 14.07.1998, 30.07.1998 and 16.11.1998 by filing a writ petition before the High Court. The writ petition was contested by the Central Government and its functionaries.

11. The Karnataka High Court by its judgment dated 12.11.2002 dismissed the writ petition. The principal reasoning is reflected in paragraph 9 of the judgment which reads as follows:

“9. Having regard to the provisions