M/S GENENTECH INC. Vs DRUGS CONTROLLER GENERAL OF INDIA
Bench: HON'BLE DR. JUSTICE D.Y. CHANDRACHUD, HON'BLE MR. JUSTICE HRISHIKESH ROY
Judgment by: HON'BLE DR. JUSTICE D.Y. CHANDRACHUD
Case number: C.A. No.-009491-009491 / 2019
Diary number: 35847 / 2019
Advocates: PRADEEP MISRA Vs
[REPORTABLE]
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 9491 OF 2019 (Arising out of SLP(C) No.24727 of 2019)
M/s Genentech Inc. & Ors. Appellant(s)
Versus
Drug Controller General of India & Ors. Respondent(s)
J U D G M E N T
Hrishikesh Roy, J.
Leave granted.
2. This appeal has been preferred against the interim order dated
18.09.2019 passed by the Division Bench of High Court of Delhi in C.M.
Application No. 22510/2016 in FAO (O.S) No.181/2016. Under the
impugned order, the Division Bench allowed the application filed by
respondent No.3-M/s Reliance Life Sciences Pvt. Ltd.1. The CS(OS) No.
1 Defendant no.3 in O.S No.181/2016
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3284/20152 before the High Court of Delhi was filed by appellant no.1-
M/s Genentech Inc. together with appellant nos. 2 and 3 namely Roche
Products (India) Pvt. Ltd. and F. Hoffmann-La Roche, AG3 respectively.
3. Plaintiff no.1- M/s Genentech Inc. claimed themselves to be the
innovators of the monoclonal antibody drug ‘Trastuzumab’ which is
manufactured by the plaintiff no.3- F. Hoffmann-La Roche and is being
marketed in India by plaintiff no.2- Roche Products (India) Pvt. Ltd.
under the brand name HERCEPTIN, HERCLON and BICELTIS. The
drug ‘Trastuzumab’ is approved globally for treatment of cancer. The
suit before the Delhi High Court came to be filed seeking to inter alia
restrain respondent No.3-M/s Reliance Life Sciences Pvt. Ltd. from
launching, marketing or selling ‘TrastuRel’, the biosimilar version of the
appellants drug ‘Trastuzumab’. In the suit, the approval granted by
respondent no.1-Drugs Controller General of India4 to M/s. Reliance Life
Sciences Pvt. Ltd. for the manufacture and marketing ‘TrastuRel’, was
also challenged. The suit was filed at a stage when respondent no.3
was yet to introduce their drug in the market. The appellants had
obtained patent for the drug ‘Trastuzumab’ but the same had lapsed on
2 Reliance Suit
3 Plaintiffs in O.S. No. 181/2016
4 DCGI
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3.5.2013 but they sought to restraint respondent no.3 from representing
their product ‘TrastuRel’, as biosimilar to ‘Trastuzumab’
4. According to the appellants, the biosimilar product in India to be
launched by respondent no.3, has not been tested as a biosimilar drug
in accordance with the law under the Drugs and Cosmetics Act, 19405
and other applicable norms and guidelines with the projection that the
respondent no.3 has not undertaken requisite chemical trials and has not
also generated adequate data to establish, inter alia, the safety, efficacy
and immunogenicity of the drug-‘TrastuRel’, manufactured by
respondent no.3.
5. Respondent no.3, however, contended that the appellants have no
enforceable right in the drug ‘Trastuzumab’ as the patent right with
respect to the drug, available with the appellants had lapsed in 2013.
Therefore, any other intending manufacturer could rely upon the
appellant’s data relating to Phase I and Phase II trials, as available in
public domain.
6. Prior to the Reliance suit filed against respondent no.3, the
appellants had filed the suit being CS (OS) No. 355/2014 against F.
Hoffmann-La Roche, AG, their associate Mylan Inc, seeking similar
5 The Act
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restraint against purported biosimilar version of the appellants drug,
“Trastuzumab”. Biocon and Mylan were however already in the market
by selling their products “Trastuzumab’ - ‘CANMab’ and
‘Trastuzumab’-‘HERTRAZ’ in the market.
7. The High Court of Delhi passed respective orders on
5.12.2014,14.2.2014 and 28.02.2014 in the Biocon’s suit and permitted
Biocon and Mylan to market their drugs subject to the conditions that
they would not claim bio similarity with the appellants’ product
HERCEPTIN, HERCLON and BICELTIS. However, in the Reliance suit,
the learned Single Judge was of the prima facie view that the approval
by the DCGI for the biosimilar drug of respondent no.3, was far more
egregious than in the case of the drug marketed by Biocon. Accordingly,
an interim order was passed on 2.11.2015 in the Reliance suit whereby
respondent no.3 was restrained from launching and selling their product
‘TrastuRel’ in India, until the next date of hearing. In the Biocon and the
Reliance suits, the appellants had claimed that the biosimilar version of
the appellants ‘Trastuzumab’, were being launched without the required
test and studies under the applicable laws requiring conducting of tests
and obtaining of appropriate approval from the regulatory authority
including the DCGI. The appellants’ injunction application was ordered
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by the learned Single Judge on 25.04.2016. The Court recorded the
prima facie finding that ‘TrastuRel was approved by the DCGI under
applicable law. The learned Single Judge observed that the approvals
granted to ‘TrastuRel’ product are not on the basis of the adherence of
the Guidelines 2012 and rules framed under the Drug Act. However, it
was observed that the final finding in this respect is yet to be arrived
after the suit is heard and completion of the trial. Accordingly, while
permitting respondent no.3 to launch and market ‘TrastuRel’ on the basis
of the approval from the DCGI, certain conditions were imposed by the
learned Judge to safeguard public health and safety as also to protect
the innovator of the biosimilar drug ‘Trastuzumab’. The relevant
stipulations of the learned Single Judge are noted as follows:
“262. I am of the view that the approvals granted to TrastuRel product are not on the basis of the adherence of the Guidelines of 2012 and rules framed under the Drug Act. The final finding in this respect is yet to be arrived after the present suit is heard upon completion of the trial. Pending the final outcome of the suit, there is need to arrive at interim measure by working out certain terms between the parties by passing the following directions:-
(a) The defendant No.3 may launch to manufacture, market and advertise their product under the name TrastuRel on the basis of the approvals already granted to defendant No.3 without calling their product as “bio similar” and/ or “bio similar to HERCEPTIN, HERCLON, BICELTIS” or in any way
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ascribing any bio-similarity with that of the plaintiffs products HERCEPTIN, HERCLON, BICELTIS in any press releases, public announcements, promotional or other in printed form and from relying upon or referring the plaintiffs' names.
(b) The defendant No.3 may also manufacture and market the drug by qualifying the INN name Trastuzumab but not to use the said name stand alone on the carton or package insert as a brand name. The defendant No.3 can use the INN name as Reliance Trastuzumab or TrastuRel wherever applicable to describe the composition of molecule on the product as well as in its insert and not in a prominent manner. The said expression shall be used at the bottom part of the carton and should be in small size letters than the brand name TrastuRel.
(c) In view of prima facie findings that the use of the data by the defendant No.3 in the product insert without undergoing the entire process of the trials is misleading, the defendant No.3 is also restrained from using the data relating to manufacturing process, safety, efficacy and tests conducted for the safety of the drugs as complained of by the plaintiffs till the time the final decision on the issue of the bio similarity is made in the present suit.
(d) In the event, the defendant No.3 intends to claim bio similar as a description of its product or part of its promotional campaign or otherwise in any other form, the defendant No.3, if so advised, can re-apply the said license before the relevant authorities including defendant No.1 and in which case, the defendant No.1, the authorities and committees framed therein shall decide the said approval application in accordance with the Rules and Guidelines of 2012 and also the observations made by this court in the present order. The defendant No.3 shall also be entitled to use the data of the
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plaintiffs for the comparison purposes before the Regulatory Authority. In the alternative, the defendant No.3 may await the outcome of the present suit and can continue with the present arrangement as an interim measure.
(e) This interim measure is made only in view of the peculiar facts in the present case only wherein the defendant No.3 is already in possession of approvals granted rightly or wrongly validity of which is questioned in this suit. In future application for approval(s) of biosimilar shall be decided by the defendant No.1 and authorities and committees while considering the guidelines of 2012 and also the findings arrived at in the present order by this Court as well as strictly as per the provisions of the Act and Rules.”
8. In a separate order, also dated 25.04.2016 in the Biocon suit, the
learned Single Judge imposed similar conditions as those on respondent
no.3.
9. Aggrieved by such restriction, Biocon and Mylan approached the
Division Bench of the High Court. Likewise, the appellants filed appeal
FAO (OS) No. 227 of 2016. Respondent no.3 filed appeal (FAO(OS) No.
181/2016) against the interim order dated 25.4.2016. The Division Bench
noted that Biocon and Mylan has been in the market for almost two
years and accordingly permitted them to continue to market ‘CANMab’
and ‘HERTRAZ’ without complying with the additional directions set forth
in the order dated 28.06.2016.
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10. In the appeals filed by respondent no.3 and in their challenge to
the Single Judge order of 25.04.2016, the Division Bench had not
granted any interim relief to respondent no.3 until the recent impugned
order (18.9.2019); The respondent no.3 accordingly filed SLP(C)
No.6203/2019 in this Court.
11. The earlier SLP(C) No.6203/2019 was disposed of by this Court on
8.3.2019 with a request to the High Court of Delhi to simultaneously take
up the appeals preferred by the contesting parties at an early date and
dispose of the same as expeditiously as possible preferably within four
months. In case, the appeals are not heard and disposed of within the
stipulated time frame, the High Court was requested to take up the
interlocutory application(s) filed by both appellant and Respondent No.
3. The order passed by this Court on 8.3.2019 related to the FAO (OS)
No.181/2016 and FAO (OS) No.227/2016.
12. The Division Bench of the High Court thereafter considered the
FAO (OS) No.181/2016 and the C.M. Appln. No.22510/2016 filed by
respondent no.3 against the interim order passed by the learned Single
Judge on 25.04.2016 whereunder, respondent no.3 was permitted to
launch and market their product ‘TrastuRel’ without projecting the same
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as biosimilar to the appellants’ drugs HERCEPTIN, HERCLON and
BICELTIS. Under the impugned order dated 18.9.2019, the Division
Bench allowed the application of respondent no. 3 and granted interim
stay of the learned Single Judge order dated 25.04.2016 in terms of the
orders dated 28.4.2016 and as clarified vide order dated 3.3.2017, in the
FAO (OS) Nos.132/2016 and 133/2016, filed by Biocon and Mylan. The
Court justified the interim order by observing that the regulatory
authorities have granted their approval to the biosimilar drug of
respondent no.3 and prima facie the said approval cannot be considered
to be illegal. But it was not possible to determine at that stage, whether
respondent no.3 has conducted the requisite trials as are prescribed for
a bio similar drug. The Division Bench held that in the face of the expiry
of the patent in favour of the plaintiff, their locus standi to file the suit was
considered to be relevant issue to be determined and the possibility of
the suit being filed with the objective of stifling competition was taken
into account and accordingly relief was granted to respondent no.3 in
marketing their product ‘TrastuRel’ on the same terms, as was granted to
Biocon and Mylan.
13.1 Assailing the impugned order of the Division Bench of the High
Court, Mr. Shyam Divan, learned Senior Counsel appearing on behalf of
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the appellants contends that the Division Bench failed to comply with the
express directions contained in this Court’s order dated 8.3.2019 in the
SLP(C) No. 6203 of 2019 whereby this Court had expressly directed that
the respective appeals and/or interim applications filed by the appellants
and respondent No. 3 be heard analogously and disposed of.
According to the appellants’ counsel, the Division Bench however
considered only the application of respondent No. 3 on merit, without
simultaneously entertaining the appellants’ application.
13.2. On the claim for parity for the drug ‘TrastuRel’, with the biosimilar
drug produced and marketed by Biocon and Mylan, Mr. Divan submits
that the DCGI itself did not consider the drug of respondent no. 3 to
be entitled to be treated at par with the product of Biocon and Mylan.
But this vital fact was ignored by the Division Bench in allowing parity of
operation to Reliance, with Biocon and Mylan.
13.3 The appellants then project that the Reliance has been successful
in participating in government tenders with their drug ‘TrastuRel’ and
therefore, the conditions imposed by the learned Single Judge on
25.4.2016, should not have been interdicted without the final decision in
the Reliance suit, pending before the Court instead the appeal filed by
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appellant ought to have been considered, allowed and absolute
injunction should have been granted.
13.4 According to Mr. Divan the issue of International Non-Proprietary
Name (“INN”) goes to the very root of the dispute between the parties.
He contends that Reliance is not entitled to use the INN, since their drug
has been approved without undergoing the required testing, prescribed
under the Act, the Rules and the 2012 Guidelines.
13.5 Referring to the consideration made by the learned Single Judge in
the Reliance Suit in disallowing parity to the drug ‘TrastuRel’
manufactured by the respondent No. 3, the appellants’ counsel submits
that the DCGI too had admitted that the Reliance did not conduct
Phase-I and II of the mandatory three phase sequential clinical trials and
that Reliance has misappropriated and reproduced the appellants’ data
in their test dossiers and marketing material and therefore the possibility
of jeopardising public safety was considered by the learned Single Judge
in stipulating certain conditions to allow marketing of the drug
‘TrastuRel’, manufactured by Reliance. The learned Senior Counsel
emphasizes that the direction issued to Reliance to add qualifier to the
word ‘Trastuzumab’ was to avoid jeopardising the health and safety of
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the patients and also to distinguish the Reliance’s drug from that of the
innovator.
14.1 On the other hand, Mr. Sajan Poovayya, learned Senior Counsel
submits that the Division Bench while passing the impugned order had
considered elaborate arguments advanced by the counsel representing
the appellants and all their contentions were duly considered and
therefore, there was adequate compliance with this Court’s order dated
8.3.2019 in SLP(C) No. 6203 of 2019. According to the respondent no.
3, the Division Bench was conscious of this Court’s order and therefore,
dealt with the submissions of the appellants as can be seen from
paragraphs 41 to 50 in the impugned order. The learned Senior Counsel
would therefore argue that the impugned order of the Division Bench
cannot be said to be in violation of the direction issued for analogous
consideration of the appeals and interim applications, of the rival parties.
14.2 The learned Senior Counsel submits that the appellants’ patent
right on the product ‘Trastuzumab’ has lapsed in 2013 and therefore, in
the Reliance’s suit, the conditions imposed by the learned Single Judge
on 25.4.2016 should not be allowed to continue to the prejudice of
respondent No. 3.
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14.3 Mr. Poovayya submits that respondent No. 3 has faced
considerable difficulties in participating in tenders where the required
product is described in its generic name ‘Trastuzumab’ and therefore,
despite being identically placed with other Indian manufacturers like
Biocon, Mylan, Zydus, the respondent No. 3 is unfairly restricted to
market their bio similar drug.
14.4 Respondent No. 3 next contends that the condition imposed by the
learned Single Judge on the packaging/labelling on the drug
manufactured by the Reliance is contrary to Rule 96 of the Drugs and
Cosmetic Rules, 1945 and accordingly, he argues that the Division
Bench order which allows respondent No. 3 to manufacture and market
their bio similar product with the labelling direction given in the
Reliance’s suit, would not enable respondent No. 3 to conform to the
statutory rules.
14.5 Questioning the timing of the Reliance suit, Mr. Poovayya submits
that the suit was filed by the appellants just when Reliance was ready to
launch their product after obtaining all requisite approvals including
manufacturing and marketing authorisation granted by the Subject
Expert Committee (Oncology and Hematology) as also the approval
granted by the DCGI for manufacturing ‘Trastuzumab’, under Form No.
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46 and 46A of the Act. It was submitted that the package insert, the
carton package were duly approved by the Subject Expert Committee,
but on account of the interim order passed by the learned Single Judge
on 25.4.2016, the respondent No. 3 had to revise their packaging and
package insert to the extent that the INN name ‘Trastuzumab’ was to be
qualified with the company’s name.
15. The learned counsel appearing for Union of India makes no
specific submissions in the appeal but only submitted that DCGI has
granted the approval to respondent No. 3.
16. Before we consider the rival contentions, at the outset it is noted
that the Reliance suit is now pending for final disposal in the High Court.
In the detailed interim order recorded on 25.04.2016, the submissions of
the learned ASG to the effect that the clinical trials of Phase I and Phase
II for the drug manufactured by respondent no.3, are not registered with
the DCGI but approvals were accorded on the basis of the justification
given by respondent no.3 was noted by the court. Whether the injunction
suit filed by the appellants is an abuse of the process of law and whether
the approval was granted to the similar drug manufactured by
respondent no.3, without following 2012 Guidelines was also borne in
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mind. The possibility of the attempt by the defendants to pass off their
drug as biosimilar product ‘Trastuzumab’, marketed by the appellants
was thought out. After careful consideration of all those aspects
including the projection from the DCGI, the learned Single Judge felt that
the process of obtaining approval was flawed due to non-adherence to
the statutory provisions of the Act and the Rules as also of the 2012
Guidelines. Then reflection was made on the protective conditions which
can be imposed for allowing respondent no.3 to launch their product.
Upon due assessment, the interim order dated 25.04.2016 was then
passed.
17. As permitted by the interim order dated 25.4.2016, the respondent
no.3 launched their bio similar product ‘TrastuRel’ and they have been in
the market with their drug for the last about three and a half years. They
have also participated in Government tenders and when certain doubts
were raised on whether the drug ‘TrastuRel’ is biosimilar with
‘Trastuzumab’, the High Court had intervened in favour of respondent
no.3, in separate proceeding. However, while the interim order passed
by the learned Single Judge did not stop the marketing of the drug
‘TrastuRel’, the Division Bench even while adverting to the concern
raised by the learned Single Judge on the issues, which are to be
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determined when the suit is finally decided, allowed respondent no.3 the
parity of operation with Biocon and Mylan. The Division Bench felt that
respondent no.3 is on similar footing as Biocon and Mylan and therefore
parity in marketing of their respective biosimilar product can be allowed.
18. In their challenge to the impugned order, the appellants have
contended that in passing the impugned order, the Division Bench had
failed to simultaneously consider and dispose of the pending appeals
and the interim applications filed by the plaintiffs. We had earlier referred
to the order passed by this Court on 8.3.2019 in SLP (C) No.6203/2019
which required the High Court to simultaneously take up the appeals and
the interim applications filed by both sides. Although some of the
contentions raised by the appellants counsel were taken into
consideration, those submissions were examined by the Division Bench
only in the context of the application filed by respondent no.3. On this
aspect, the learned senior counsel for respondent no.3 submitted that
non mentioning of the FAO and the IA of the appellants was an
inadvertent omission. However such submission, in the face of the
specific observation made by the Division Bench in paragraph 51 of the
impugned order, cannot be accepted by us.
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19. When the impugned order of the Division Bench is read in the
context of the express direction of this Court, it is clearly discernible that
the Division Bench had only considered the appeal and application filed
by Reliance on merit that is FAO(OS) No. 227/2016 and C.M. Appl. No.
22510/2016; without entertaining the appellants’ application. In fact the
Bench itself clarified the position in paragraph 51 of the impugned order
by stating the following:-
“……. ………….……
51. We have heard learned counsels and considered their respective submissions. The submissions made on behalf of the parties are being examined in the context of the appellant’s application for stay of the impugned order.
…………. …… ……..…… ……. …… ……………….”
20. The fact that the Division Bench was singularly concerned with
taking up the Reliance’s interim application is further established from
the separate order passed on 16.7.2019 in FAO (OS) No. 132, 133, 226,
227 and 268 of 2016 which directs the applications (including the appeal
and the application of the plaintiffs) to be listed on 11.2.2020. By way of
a separate order, of the same date i.e. 16.7.2019, the Division Bench
reserved orders on Reliance’s application. Therefore, it is difficult for us
to accept as has been suggested by the learned Senior Counsel for the
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respondent no.3 that the segregation of the application of one party by
the Division Bench, could be an inadvertent error.
21. In the above context, the Division Bench even without considering
the appellants’ interim application through their observations in
paragraph 57, had clearly shut out any scope for the appellants’
application to be heard and in effect, ordered on the application.
22. In the interim order passed by the learned Single Judge on
25.4.2016, the conditions imposed on Reliance’s product by the DCGI
were taken into account. The said interim order was operating without
causing much hindrance and respondent No. 3 was successful in
participation in government tenders and supplies, with their drug.
Therefore, the contrary submission made by the learned Senior Counsel
for respondent no.3 is found to be incorrect.
23. As regards the contention made by Mr. Poorvayya that the
condition imposed by the learned Single Judge on the
packaging/labelling is contrary to the statutory prescriptions, it must be
borne in mind that the arrangement ordered by the learned Single Judge
has been in operation since 25.04.2016. Therefore without a final
decision on the suit on the basis of relevant evidence, the continuing
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arrangement in our opinion should not have been disturbed, on this
count.
24. The appellants’ suit before the Delhi High Court is not a trade mark
action nor it is an attempt to enforce the appellants’ patent, which
admittedly expired in 2013. The suit is an action for extended passing
off and to prevent the respondent from using the appellants’ data and
improper reference to its drug ‘Trastuzumab’. Therefore, the expiry of the
appellants’ patent right on the drug ‘Trastuzumab’ may not have any
direct bearing on the contention raised in the Reliance suit.
25. As regards the submission on the timing of the suit and the other
contentions raised on the approval secured from the Subject Expert
Committee, these are matters which should appropriately be dealt with
when the suit is finally decided. Those need not be factored in at this
stage, in support of the impugned interim order.
26. Reverting back to the impugned order, the Division Bench had not
only considered the contention raised by the appellants in paragraphs 41
to 50 but then rejected those, in paragraphs 52 to 60 of the same order.
In such circumstances, directing the Division Bench to now consider the
appellant’s appeal FAO No. 227/2016 and CM No. 26902 of 2016 would
in our view be nothing but an empty formality, more particularly in the Page 19 of 21
present appeal when this Court taking note of the order passed by the
learned Single Judge imposing conditions and the same being in
operation from 25.4.2016 has approved the same to be an appropriate
interlocutory order considering the nature of the suit where all other
issues are to be considered.
27. Because of the foregoing, and more particularly because the
Division Bench did not keep in view the order of this Court dated
8.3.2019 to ensure analogous consideration of the interim applications of
both sides in terms of this Court’s earlier direction and having regard to
the fact that the position prevailing since last three and a half years
(pursuant to the learned Single Judge’s order dated 25.4.2016) have
been upset without considering the issue of balance of convenience, we
are persuaded to hold that the Division Bench was in error. Without
analogous consideration of the appellant’s applications, the Court should
not have unsettled the prevailing situation for the last three and half
years, without final conclusion of the Reliance suit.
28. In view of the aforesaid, the impugned order is set aside and
appeal is allowed. The interim direction given by the learned Single
Judge on 25.4.2016 is accordingly made operational. At the same time,
as the Reliance’s suit is pending since 2016, the High Court is requested
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to dispose of the CS (OS) No. 3284/2015 expeditiously and preferably
within 12 months of receipt of this order. In the meantime, to avoid
prejudice to respondent No. 3, whenever government procurement is
proposed for the drug by its generic name ‘Trastuzumab’, the Reliance
should be allowed to participate with their biosimilar product, without any
impediment. It is made clear that the views expressed here is only for
the purpose of this appeal and should have no bearing in the proceeding
pending in the High Court.
29. With the above order, the appeal stands allowed without any order
on cost.
…………………………J. [R.BANUMATHI]
…………………………J. [A.S.BOPANNA]
…………………………J. [HRISHIKESH ROY]
NEW DELHI DECEMBER 17, 2019
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