2026 Supreme(Online)(Del) 926
IN THE HIGH COURT OF DELHI AT NEW DELHI
Purushaindra Kumar Kaurav, J
Cipla Limited – Appellant
Versus
National Pharmaceutical Pricing Authority – Respondent
W.P.(C) 208/2026 | W.P.(C) 209/2026 | W.P.(C) 211/2026 | W.P.(C) 212/2026 | W.P.(C) 213/2026 | W.P.(C) 214/2026 | W.P.(C) 215/2026 | W.P.(C) 227/2026
For the Appellants/Petitioners: Archana Sahadeva
For the Respondents: Nishant Gautam CGSC, Vardhman Kaushik, Kavya Shukla, Vinay Kaushik
The court emphasizes the necessity of procedural fairness, specifically the requirement to provide an adequate opportunity of hearing before issuing demand notices for overcharged amounts when the factual basis regarding manufacturing dates relative to price notifications is contested.
Headnote:The petitioner filed several writ petitions challenging demand notices issued by the competent pricing authority, contending that the manufacturing of the subject drugs occurred prior to the issuance of the relevant ceiling price notifications. The court observed that the impugned decisions were reached without providing the petitioners an adequate opportunity of hearing despite prior preliminary notices. The court, seeking clarification on procedural fairness, directed the respondents to take instructions on why the decision should not be reconsidered. The central issue pertains to whether the pharmaceutical authority can issue recovery notices based on subsequent price ceiling notifications without considering the date of manufacture and whether such decisions violate principles of natural justice. The ratio decidendi focuses on the necessity of affording an opportunity of hearing before the issuance of recovery demands where the statutory applicability regarding the date of manufacture is contested. The court, declining any interim order at this stage, adjourned the matter to await instructions from the respondents regarding the reconsideration of the impugned decisions.
| Table of Content |
|---|
| 1. overview of the dispute regarding the timing of drug manufacture versus price notification. (Para 1 , 2 , 3) |
| 2. court's mandate to ensure procedural fairness and the requirement for an opportunity of hearing prior to adverse findings. (Para 4 , 5 , 6 , 7 , 8 , 9) |
O R D E R
1. The grievance raised by the petitioner in all the writ petitions is that the manufacturing of the drug was prior to issuance of ceiling price notification by National Pharmaceutical Pricing Authority (‘NPPA’).
2. Learned counsel for the petitioner has presented following brief note of facts to explain the aforesaid position:
“BRIEF NOTE ON FACTS”
| Item No. | WP (C) No. | Impugned Batch No. & date of manufacturing by the Petitioner | Ceiling Price Notification issued by NPPA | Form V issued by Petitioner on | Date of alleged purchase by the NPPA | Product Name |
|---|---|---|---|---|---|---|
| 62 | 208/2026 | SA22815; Oct. 2022 | SO No. 194(E); dt. 11.01.2023 | 12.01.2023 [PDF 230] | 25.05.2023 | Forcan 150mg |
| 63 | 209/2026 | AFC22029; June 2022 | SO No. 87(E); dt. 06.01.2023 | 09.01.2023 [PDF 88] | 20.10.2023 | Cipmox CV |
| 64 | 211/2026 | D2031; April 2022 | SO No. 1579(E); dt. 31.03.2023 (w.e.f. 01.04.2023) | 02.04.2023 [PDF 112] | 21.07.2023 | Terbicip |
| 65 | 212/2026 | KO20300; May 2022 | SO No. 87(E); dt. 06.01.2023 | 09.01.2023 [PDF 242] | 25.05.2023 | Novamox CV 625mg |
| 66 | 213/2026 | 23S2GCA145; Feb. 2023 | SO No. 1579(E); dt. 31.03.2023 (w.e.f. 01.04.2023) | 02.04.2023 [PDF 121] | 19.07.2023 | Itranox |
| 67 | 214/2026 | P110458; May 2021 | SO No. 87(E); dt. 06.01.2023 | 09.01.2023 [PDF 89] | 22.08.2023 | Fungicip |
| 68 | 215/2026 | SA13292; Nov. 2021 | SO No. 87(E); dt. 06.01.2023 | 09.01.2023 [PDF 84] | 23.05.2023 | Forcan 200mg |
| 69 | 227/2026 | G1832022; Oct. 2022 | SO No. 194(E); dt. 11.01.2023 | 12.01.2023 [PDF 103] | 25.07.2023 | Vitafol 5mg |
3. As per the respondent, the amount mentioned in the demand notice against each of the petitioner is as under:
| Sr. No. | Name of Drug | Demand Notice dated | Amt. mentioned in the Demand Notice. |
|---|---|---|---|
| 1. | Itranox 200’ Capsules, Ts, Each hard gelatine capsule contains Itraconazole 200mg | 26.08.2025 | Rs.1,01,05,428 |
| 2 | "Terbicip" Cream, 10gm, Containing Terbinafine Hydrochloride 1%w/w | 05.08.2025 | Rs.52,71,156/- |
| 3 | Forcan-150" tablets, 1's, each uncoated tablet contains Fluconazole 150mg | 25.07.2025 | Rs.51,73,715/- |
| 4 | VITAFOL" Tablets, 30's, each uncoated tablet contains Folic Acid 5mg | 11.08.2025 | Rs.29,98,312/- |
| 5 | Fungicip-200" Tablet, 1's, each uncoated tablet contains Fluconazole 200mg | 12.08.2025 | Rs.20,58,029/- |
| 6 | Forcan-200" tablets, 4's, each uncoated tablet contains Fluconazole 200mg | 11.08.2025 | Rs.10,32,606/- |
| 7. | Cipmox CV-625" Tablets, 10's, each film coated tablet contains Amoxycillin 500mg and Clavulanic acid 125mg | 04.08.2025 | Rs.5,16,335/- |
| 8. | Novamox CV 625mg" Tablets, 10's, each film coated tablet contains Amoxycillin 500mg and Clavulanic acid 125mg | 01.08.2025 | Rs.4,70,079/- |
4. During the course of hearing, the respondent submits that under almost similar circumstances, vide order dated 15.10.2025, the Court has entertained the writ petition and had directed that no precipitative steps shall be taken against the petitioner therein, subject to depositing with the respondent the overcharged amount, as involved therein.
5. In view thereof, the Court is of the tentative opinion that a similar order should be passed in these writ petitions as well.
6. The petitioners, however, rely on some other orders that they claim to be identical. Be that as it may, the Court is not inclined to pass any interim order today, and instead calls upon learned counsel for the respondents to take instructions as to why the impugned decision should not be directed to be reconsidered by the said authority after affording an adequate opportunity of hearing.
7. It be noted that the preliminary notice was issued to the petitioners; however, before taking the impugned decision, the petitioners were not called upon to explain their action.
8. To this Mr. Nishant Gautam, learned CGSC, who is assisted by Mr. Vardhman Kaushik, learned counsel for responde