Chikungunya meds: ‘Clear pharma firm’s ₹30.49-L dues’

The Mumbai city civil court recently directed the state government to clear dues of a pharmaceutical company to the tune of ₹30.49 lakh for supplying medicines to

The Mumbai city civil court recently directed the state government to clear dues of a pharmaceutical company to the tune of ₹30.49 lakh for supplying medicines to counter the 2006 chikungunya epidemic across 32 districts in Maharashtra.

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The court accepted contentions of the company and ordered the state to clear its dues with an additional 9% annual interest.

The company alleged that following the outbreak of chikungunya, the government had placed orders for several medicines and equipment on April 25, 2006. The rates for the items were fixed by the Directorate of Medical Education and Research (DMER) in December 2002.

As per the said rates, the medicines were dispatched and the company billed the government for ₹53.88 lakh. In February 2007, the government sent a letter to the company stating it would be paid as per competitive rates and not as per the bill raised by the company. The rates, the government claimed, were less than those fixed by DMER.

The firm then filed a suit for the differential amount of ₹30.49 lakh, with interest at the rate of 12% per annum.