2011 INSC 1097
                             SUPREME COURT OF INDIA

                               All India Drug Action Network

                                                Vs.

                                     Union of India (UOI)

                                  W.P. (C) No. 423 of 2003

                 (G.S. Singhvi and Sudhansu Jyoti Mukhopadhaya JJ.)

                                           11.10.2011

                                             ORDER

1. At the commencement of hearing Shri Colin Gonsalves, learned senior counsel
appearing for the Petitioners read out portions of 45th Report of the Parliamentary
Standing Committee on Health and Family Welfare and 7th Report of the Standing
Committee on Chemicals and Fertilizers. Thereafter, Shri Doabia, learned senior
counsel appearing for the Union of India placed before the Court a Photostat copy
of the Office Memorandum dated 20.06.2011 sent by the Ministry of Health &
Family Welfare to the Secretary, Department of Pharmaceuticals on the issue of
revision of National List of Essential Medicines. Paragraph 2 of that memorandum
reads thus:

       2. In the above connection, it may be stated that the National List of
       Essential List (NLEM), 2003 has been revised. The revised list, the NLEM,
       2011 contains 348 drugs. While approving the list, the Minister of Health &
       Family Welfare has also approved that if affordable healthcare has to
       become a reality, all the medicines included in the NLEM, 2011 should be
       brought within the ambit of price control under the DPCO, considering the
       fact that the cost of medicines in the overall cost of healthcare constitutes
       more than 60% and a large percentage of our people do not have access to
       affordable healthcare. If, at all, such medicines cannot be included under
       DPCO with, the same trade margins, there could be graded system of
       trade/profit margins for different categories and 348 medicines in NLEM,
       2011 could be so categorized. This will ensure that reasonable margins and
       growth of Pharma industry also do not get adversely affected. The Minister

Law Information Center  1  SpotLaw
       has, therefore, approved taking up the matter with the Department of
       Pharmaceuticals for further appropriate action.

2. Shri Ashok Bhan, learned senior counsel appearing for the Department of
Chemicals and Fertilizers also placed before the Court a xerox copy of Office
Memorandum dated 04/05.10.2011. In para 6 thereof, it is mentioned that the
Department of Pharmaceuticals is examining all the possibilities of control and
monitoring of prices of medicines including those covered under the NLEM, 2011.

3. Having perused the two Office Memorandums placed by the learned senior
counsel for Union of India and Department of Chemicals and Fertilizers, we deem
it proper to direct the Secretaries of two Ministries to file their affidavits within
four weeks indicating therein as to within what time the revised list of National
List of Essential Medicines (NLEM) will be added in Schedule-I of the Drugs
(Price Control) order, 1995.

4. A comprehensive revised list of National List of Essential Medicines (NLEM)
be also produced along with affidavit to be filed on behalf of the Ministry of
Family & Welfare.

5. List the case on 17.11.2011 for further hearing.

Law Information Center  2  SpotLaw