Quick Summary: The Delhi High Court ruled against the Union of India in a case involving trade margins and interest liabilities with pharmaceutical companies, agreeing with earlier decisions by the Allahabad High Court and the Supreme Court.
This case involves the Union of India and Best Laboratories Pvt. Ltd., along with other pharmaceutical companies. The main issues were about getting back a 16% trade margin as an extra charge and whether interest should be paid before the order to pay back the extra amount.
The case refers to a decision by the Allahabad High Court, which was agreed upon by the Supreme Court. The Union of India's attempts to review and file another petition were dismissed by the Supreme Court on August 24, 2022.
Recovery of Trade Margin: The Union of India wanted to get back a 16% trade margin as an extra charge. However, the court found that this amount never went to the manufacturers and therefore could not be taken back as an extra charge.
Interest on Overcharges: The Union also wanted interest on the extra charges before the order was made. The court ruled that interest could only be charged after the order was made.
The Delhi High Court emphasized that the Supreme Court had already agreed with the Allahabad High Court's decision. The issues were considered settled and not open for further discussion.
The judgment was delivered by Justices Anil Kshetrapal and Harish Vaidyanathan Shankar. They explained that once the Supreme Court agrees with a high court's decision, it becomes binding.
The Delhi High Court dismissed the Union of India's appeal, supporting the decisions of the Allahabad High Court and the Supreme Court. This case shows the importance of following decisions made by higher courts and how they help settle disputes.
