Supreme Court Allows Appeal in Drug Regulatory Dispute — Upholds Interim Order. The Division Bench's failure to consider the appellants' application led to an erroneous interim relief granted to the respondent.

In Favour of Accused
  • 1
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose from an appeal against an interim order of the Delhi High Court concerning the marketing of a biosimilar drug 'TrastuRel' by M/s Reliance Life Sciences Pvt. Ltd., which was challenged by M/s Genentech Inc. and its associates. The appellants claimed to be the innovators of the drug 'Trastuzumab', which had its patent expire in 2013. They sought to restrain the respondent from launching 'TrastuRel', arguing that it had not undergone the necessary trials as per the Drugs and Cosmetics Act, 1940. The High Court initially imposed conditions on the marketing of 'TrastuRel', but the Division Bench later granted interim relief to the respondent, allowing them to market the drug under certain terms. The appellants contended that the Division Bench did not adequately consider their application and failed to comply with the Supreme Court's earlier directions for analogous consideration of both parties' appeals. The Supreme Court found that the Division Bench had erred in not considering the appellants' application and in granting relief to the respondent without addressing the balance of convenience. The Court reinstated the Single Judge's interim order and directed the High Court to expedite the final disposal of the suit, while allowing the respondent to participate in government tenders for 'TrastuRel' without impediment. The appeal was allowed without costs.

Headnote

A) Intellectual Property Law - Patent Rights - Expiry of Patent - Patent rights of the appellants on 'Trastuzumab' lapsed in 2013, impacting their enforceable rights against the biosimilar 'TrastuRel' - The court noted that the suit was not a trademark action but an extended passing off action to prevent misuse of data - Held that the expiry of patent does not directly affect the suit's core issues (Paras 24-25).

B) Regulatory Compliance - Approval of Biosimilar Drugs - The court emphasized the need for compliance with the Drugs and Cosmetics Act, 1940 and the 2012 Guidelines for biosimilar drugs - The interim order allowed respondent no.3 to market 'TrastuRel' under specific conditions to ensure public safety pending final resolution of the suit - Held that the approval process must adhere to statutory provisions (Paras 7-8, 28).

C) Interim Relief - Balance of Convenience - The court found that the Division Bench failed to consider the balance of convenience and the prevailing situation for three and a half years before unsettling the interim order - The appeal was allowed, reinstating the Single Judge's interim order and directing expeditious disposal of the suit (Paras 27-28).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Division Bench of the High Court erred in granting interim relief to the respondent without considering the appellants' application.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court set aside the impugned order of the Division Bench, reinstated the interim order of the Single Judge, and directed the High Court to expedite the final disposal of the suit within 12 months.

Law Points

  • Interim relief
  • patent rights
  • biosimilar drugs
  • compliance with regulatory guidelines
  • balance of convenience
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (SC) (12) 112

Civil Appeal No. 9491 of 2019

2019-12-17

Hrishikesh Roy, R. Banumathi, A. S. Bopanna

Shyam Divan, Sajan Poovayya

M/s Genentech Inc., Roche Products (India) Pvt. Ltd., F. Hoffmann-La Roche, AG

Drug Controller General of India, M/s Reliance Life Sciences Pvt. Ltd.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Dispute over the marketing of a biosimilar drug and patent rights.

Remedy Sought

Appellants sought to restrain respondent from marketing 'TrastuRel'.

Filing Reason

Challenging the approval granted for 'TrastuRel' and seeking compliance with regulatory guidelines.

Previous Decisions

Initial interim order imposed conditions on the marketing of 'TrastuRel' which were later challenged.

Issues

Whether the Division Bench erred in granting interim relief to the respondent without considering the appellants' application. Whether the approval process for 'TrastuRel' complied with the Drugs and Cosmetics Act and 2012 Guidelines.

Submissions/Arguments

Appellants argued that the Division Bench failed to consider their application and the implications of the expired patent. Respondent contended that the Division Bench adequately considered all arguments and that the appellants' patent had lapsed.

Ratio Decidendi

The Division Bench's failure to consider the appellants' application and the balance of convenience led to an erroneous interim relief granted to the respondent, necessitating reinstatement of the Single Judge's order.

Judgment Excerpts

The suit is an action for extended passing off and to prevent the respondent from using the appellants’ data. 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.

Procedural History

The appeal was preferred against an interim order of the Delhi High Court, which had allowed the respondent to market 'TrastuRel' under certain conditions. The Supreme Court intervened after the Division Bench's order, which was seen as not complying with earlier directions for analogous consideration of both parties' applications.

Acts & Sections

  • Drugs and Cosmetics Act, 1940:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Restores POCSO and IT Act Charges in Child Pornography Case — High Court Erred in Quashing Chargesheet Without Considering Presumption of Culpable Mental State. Possession of Child Pornographic Material, Even Without Intent to Distrib...
Related Judgement
Supreme Court Supreme Court Upholds Election Appeal in Representation of the People Act Case — Interim Orders Clarified.