VidhiSangh

Supreme Court of India · 22/08/2019

UNION OF INDIA & ANR. ETC. versus BGP PRODUCTS OPERATIONS GMBH AND HAGENE IMMERMATT WEG. & ANR. ETC.

[2019] 11 S.C.R. 170 · 2019 INSC 947

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Court referred to a three-judge Bench the Union’s appeals concerning the 27 April 2018 notification reserving manufacture of oxytocin formulations for domestic use to public-sector entities. It identified unresolved questions about the drug-control power, essential-medicine regulation, monopoly, classification, public interest and the evidentiary basis for restricting licensed private manufacturers. Both judges agreed on referral and did not decide the notification’s validity.

Issues

  1. Whether section 26A applied to an essential medicine regulated under the Essential Commodities Act and whether the notification lawfully restricted private manufacturers.
  2. Whether the measure created a constitutionally protected monopoly, rested on relevant material and served the stated public-health purpose.
  3. Whether section 26A power was legislative or executive, with corresponding implications for review.

Held

Result

Appeals directed to be placed before the Chief Justice of India for reference to a larger Bench of three judges to answer the framed questions and dispose of the appeals. Notification validity and the competing merits contentions remained undecided.

Judgment PDF: Supreme Court of India, [2019] 11 S.C.R. 170.