Justices Aftab Alam and Ranjana Desai said the updated version of the drug failed in "both the tests of invention and patentability" as required under the Indian Patent Act.
Pratibha Singh, a lawyer for Indian generic drug-maker Cipla said the ruling set a precedent that prevents global drug firms from getting new patents on updated versions of existing drugs.
"The court said patents will be granted only for genuine inventions and repetitive patenting will not be allowed," she said.
The decision impacts the ability of major pharmaceutical companies to sell patented medicines in India, because it allows domestic firms to continue production of generic copies that are much cheaper.//DPA