Justice V K Jain rejected the plea of All India Medicos as it did not give an undertaking that it will not sell any medicines if it is given a month's time to vacate the premises.
The court on November 20 had directed AIIMS to reconsider the firm's plea for extension of licence to continue to run the chemist store for one year and pass speaking orders.
In furtherance to the high court's order, the hospital reconsidered the pharma firm's plea for extension and passed an order on November 5 giving 10 days' time to it to vacate the premises, advocate Mehmood Pracha, who appeared for AIIMS, submitted.
The November 25 order of AIIMS had been challenged by All India Medicos in its latest petition.
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During arguments, Pracha contended the store is still selling medicines from outside, despite the order of AIIMS, which was opposed by the pharma firm's counsel, Anil Verma.
Verma said that since the latest order of AIIMS, the firm has not sold medicines to anyone.
The firm had sought directions to AIIMS and the Ministry of Urban and Poverty Alleviation to extend its licence to run the chemist shop in the hospital premises.
The firm had also said that on November 21, 2011 it was granted licence to run the chemist shop for two years and it is the only medical store in the AIIMS premises supplying medicines and other items to the patients at 56 per cent discount on the maximum retail price.