Delhi High Court directs Central government to release over Rs 14 crore to Panacea Biotec for manufacturing Sputnik-V

The Delhi High Court on Friday directed the Central government to release Rs 14 crore along with interest to vaccine maker, Panacea Biotec for manufacturing COVID-19 vaccine, Sputnik-V subject to the company obtaining permission to manufacture it in India..As an interim arrangement, a Division Bench of Justices Manmohan Singh and Najmi Waziri also directed Panacea Biotec to deposit 20 percent of the sale proceeds with the court's registry..The order was passed pursuant to an arbitration award passed in favour of Panacea and against the Central government. .The Court was dealing with Central government's appeal against a Single Judge order rejecting its challenge to the arbitration award. .Panacea Biotec, which is in collaboration with Russian Direct Investment Fund for manufacturing of 100 million doses of Sputnik V in a year, argued that if the money awarded in the arbitration is not released to it, there would not be any production amid a huge shortage of vaccines in India..The Court also asked the Central government to consider Panacea's application seeking waiver of trial for Sputnik V which has already been approved for limited use, in accordance with the law. .The Court further observed that it saw no reason behind conducting a domestic trial for a foreign vaccine which has already been tested at the place of its origin.."One has to look at a bigger picture. Flexibility and alacrity has to be the mantra," the Court stated. .The Court further opined that there was nothing on record to show that the authorities "hand-held Indian vaccine manufacturers" to facilitate production..It also recorded that it was "apparent that there was untapped infrastructure" for vaccine manufacturing in the country. .While referring to some infrastructure being available in Himachal Pradesh and clarifying that the intent was not to prejudice anyone, the Bench added, "We have the capacity. It was known to you but you have not explored it so far..manufacturers are concerned with profits. Let it be manufactured in every State. Why are you know thinking on those lines?..We have the technology, patents.. can we now augment capacity? We have infrastructure." .Read the order: