The health ministry has formed a committee to consider raising the number of drugs deemed essential and subject to price caps.
Both companies can now complete the deal.
Two individuals filed the petition in the high court of Andhra Pradesh
There are just 1,500 drug inspectors responsible for more than 10,000 factories in India
The recall is the latest in a series of problems to hit Ranbaxy, which has had all its India factories stopped from sending drugs and ingredients to the United States.