The Delhi High Court has fixed the next hearing on the petition filed by Ranbaxy Laboratories challenging the show-cause notice issued by the National Pharmaceutical Pricing Authority (NPPA) for March 17, 2003. The show-cause notice had asked the company to remit Rs 2.59 crore for allegedly overcharging the drug Pentazocine after an official notification on price revision.

Responding to the petition, the court had directed the company to deposit Rs 1 crore with the government, and restrained the government from taking steps to recover the money from Ranbaxy subject to the court order.

Ranbaxy had sought quashing of NPPA's show-cause notice demanding the allegedly overcharged money as well as restraining the government from taking any action to recover the amount.

The NPPA notice had said that Ranbaxy sold the built up stock of Pentazocine injections without reducing the price as notified by the government and made profit at public cost.

The authority had informed the court that though Ranbaxy was exempted from the operation of price control under Drugs Price Control Order (DPCO) upto October 1999, the drugs was to be sold on fixed price after the exemption period.

Ranbaxy contended that the amount of overcharging has been arrived in an inaccurate manner and the company was not given opportunity for personal hearing, while demanding the amount with 15 per cent interest on it.

He said it was during the exemption period that the stocks were delivered to the distributors and the retailers.

The NPPA issued the demand notice for the overcharged money on February 13 while the show-cause notice was served on April 29, 2002.

The government is expected to bring to the notice of the court a related Karnataka High Court Order regarding the need to revise the prices of NPPA price-fixed drugs within 15 days of notification during the next hearing.

Meanwhile, the Karnataka High Court Order is to be looked into by the Supreme Court soon as Glaxo SmithKline (GSK), the party involved in the particular case has gone for an appeal in the apex court. Government sources informed that the SC is yet to fix the date for the hearing of this case.