JUDGMENT: (Per D.K.Deshmukh, J.)

1. In both these petitions, the same order is challenged and therefore, both the petitions can be conveniently disposed of by common order.

2. By the order dated 12.6.2003 which is impugned in these petitions, M/s.Johnson & Johnson Ltd. which is petitioner in writ petition no.4556 of 2003 and M/s.N.R.Jet Enterprises Ltd. which is petitioner in writ petition no.4264 of 2003 have been jointly and severally held liable to deposit an amount of Rs.25,00,78,500/- (Rupees Twenty five crores seventy eight thousand five hundred only) under para of DPCO'95 and interest amount of Rs.12,97,41,819/- (Rupees Twenlve crores ninety seven lakhs forty one thousand eight hundred nineteen only) under Section 7A of the Essential Commodities Act,1955. As a result of written submissions filed on behalf of the respondents, now it is an admitted position that instead of Rs.25,00,78,500/- the correct amount to be recovered is Rs.22,35,72,889/- (Rupees Twenty two crores thirty five lakhs seventy two thousand eight hundred eighty nine only). It is also a common ground that this amount has actually been deposited by Johnson & Johnson Ltd. It was also stated before us that Johnson & Johnson Ltd. is not interested in claiming back that amount. Therefore, in these petitions the only question that is to be considered is “whether by the order impugned, the petitioners in these petitions could have been jointly held liable for payment of amount of Rs.12,97,41,819/- as interest under Section 7A of the Essential Commodities Act,1955. Johnson & Johnson Ltd. is a pharmaceutical company incorporated under the provisions of the Companies Act, similarly N.R.Jet Enterprises Ltd. (hereinafter referred to as N.R.Jet) is also a pharmaceutical company incorporated under the provisions of the Companies Act. The present proceedings relate to the formulation known as “Raricap 40's tablets” In exercise of the powers conferred by section 3 of the Essential Commodities Act,1955, the Central Government from time to time made various drugs (price control) orders. The order with which we are concerned in these petitions is the drugs (price control) order 1995. The “Raricap 40's Tablet” was originally manufactured by M/s.Ethnor Limited which was amalgamated with Johnson & Johnson Ltd. in the year 1994. The Government of India in exercise of its power under para 8 of DPCO,1995 fixed the maximum retail selling price for “Raricap Tablet” at Rs.16.24 for 40 tablets by order dated 7.8.1996. At the time when the order was made that drug was manufactured by Johnson & Johnson Ltd. The Johnson & Johnson Ltd. did not abide by the order and continued to sell the drugs at the rate of Rs.24.57 for a packet of 40 tablets. It appears that Johnson & Johnson Ltd. stopped manufacturing the drug from 31.3.1997 and from 1.4.1997 N.R.J. started manufacturing and selling that drug. It appears that Johnson & Johnson Ltd. had transferred the production rights and trade mark of “Raricap 40's” tablets to N.R.Jet in July,1996. It also appears that Johnson & Johnson Ltd. has filed a writ petition in Delhi High court challenging the price fixation order and that petition is pending before the Delhi High Court. The order which is impugned in these petitions has been made pursuant to show cause notice dated 30.10.2002. The show cause notice dated 30.10.2002 was issued by the Director of Respondent no.1 to Johnson & Johnson Ltd. and N.R.Jet. stating therein that “Raricap” tablets were being sold initially by Johnson & Johnson Ltd. until March,1997 and subsequently by N.R.Jet which is a unit of Johnson & Johnson Ltd., at a price higher than which is fixed by the order dated 7.8.1996. It was claimed that Johnson & Johnson Ltd. and N.R.Jet in collusion have violated DPCO'95 by selling the drug at higher price. It was claimed that N.R.Jet is nothing but an unit of Johnson & Johnson Ltd. The share holding pattern of N.R.Jet was mentioned in detail in the notice and it was shown that N.R.

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