Bombay HC Delivers Knockout Blow to Faulty Drugs Prosecution: Delay, Missing Samples, and Procedural Blunders Seal Fate

In a scathing judgment, the Bombay High Court has quashed criminal proceedings against a pharmaceutical firm and its partners under Section 27(d) of the Drugs & Cosmetics Act, 1940 , slamming procedural lapses that robbed the accused of their statutory right to challenge a "not of standard quality" drug report. Justice N.J. Jamadar , in a detailed 30-page order pronounced on March 24, 2026 , ruled that delayed testing, failure to send a sample portion to the manufacturer, and a Sessions Court's improper direct cognizance rendered the case an "abuse of process."

The decision in M/s. C.B. Healthcare and Ors. v. Union of India (Writ Petition No. 2777 of 2024) underscores strict compliance with sampling and testing timelines, echoing Supreme Court precedents on protecting manufacturers' reanalysis rights.

From Hospital Shelf to Courtroom Fiasco: The Sample That Took Years to Spark Trouble

The saga began on November 29, 2016 , when a Drugs Inspector from Dadra and Nagar Haveli inspected Vinoba Bhave Civil Hospital's Central Medical Store in Silvassa. He drew a sample of FEXINOL-12 (Fexofenadine Hydrochloride Tablets IP) , Batch No. CBT-400/16, manufactured by petitioner M/s. C.B. Healthcare —a partnership firm based in Baddi, Himachal Pradesh—with partners as co-petitioners.

Sent to the Central Drugs Testing Laboratory (CDTL), Mumbai the next day, the sample's report arrived only on July 6, 2017 —over seven months later—declaring it substandard. A show-cause notice traced the supply chain back to the petitioners. After a joint probe and sanction from the Drugs Controller General of India on November 6, 2019 , a complaint landed before the Special Judge at Silvassa on September 28, 2021 . The court promptly issued process, bypassing Magistrate committal.

By filing time, the drug's shelf life (manufactured September 2016, expiry August 2018) had lapsed over three years prior, dooming any retest possibility.

Petitioners Fire on All Cylinders: "Procedural Minefield Exploded Our Rights"

The petitioners unleashed a barrage of challenges: - Rule 45 violation : Testing delayed beyond the mandatory 60 days without extension sought from government. - Section 23(4)(iii) breach : No sample portion sent to manufacturer despite awareness; notice under Section 18A went to distributor M/s. Knoll Healthcare , with just a copy to petitioners—who still requested a sample, ignored. - Lost retest right : Per Section 25, couldn't challenge analyst report; shelf-life expiry made court-held sample useless. - Mechanical process issuance : Special Judge didn't apply mind; no specific roles for partners under Section 34 vicarious liability. - Jurisdictional overreach : Central Drugs Inspector lacked authority; Special Judge (Sessions-level) took direct cognizance, flouting CrPC Section 193 .

They invoked Bombay HC priors like Quixotic Healthcare (2020) and Swapnil (2024), stressing delayed tests erode sample integrity.

Respondent's Defense Crumbles: "Standards Unavailable" Doesn't Cut It

The Union of India countered via affidavit: - Delay justified: Reference/impurity standards unavailable, needing procurement time. - Notice under Section 18A served (December 26, 2017); petitioners didn't notify intent to controvert report within 28 days. - Sanction valid; complaint details partners' roles in manufacturing/release.

But the court dismissed post-hoc excuses, insisting only a Rule 45 proviso extension suffices.

Court's Razor-Sharp Dissection: Precedents Pile Up Against Prosecution

Justice Jamadar dissected the Drugs Act's safeguards, prioritizing Rule 45 's "peremptory" 60-day testing mandate. "Delay beyond the specified period has the propensity to render the report of analysis suspect as the properties of the drugs may be lost," he noted, citing Medipol Pharmaceutical (2021 SCC) on valuable retest rights.

On sampling, Section 23(4)(iii) mandates a portion to the manufacturer (disclosed under Section 18A). Drawing from Amery Pharmaceuticals (2001 SC), the court clarified distributors get notice, but manufacturers retain challenge avenues. Yet, Laborate Pharmaceuticals (2018 SCC) proved decisive: No sample sent + delayed complaint = "lame prosecution" post-shelf life.

Direct cognizance? Section 32(2) mandates Sessions-level trials but lacks CrPC override. Per Union of India v. Ashok Kumar Sharma (2021 SCC), Magistrate committal is essential absent express provision. A 2010 notification designating the Special Court didn't cover Section 27(d) offences.

Partners' liability under Section 34? Complaint averments too "bald," per Brij Lal Mittal (1998 SC) and NI Act analogies—no specific conduct roles spelled out.

Integrating insights from legal reports, the ruling aligns with Bombay HC's consistent stance: Sessions Courts can't bypass CrPC for Drugs Act cases ( 2026 LiveLaw (Bom) 144 ).

Key Observations

"The provisions contained in Rule 45 of the Rules, 1945 , are peremptory in nature ... Delayed analysis of the sample thus erodes the sanctity of the analysis."

"An invaluable right of the Petitioner No.1 to have the retesting of the sample was lost... the continuation of the prosecution... would be an abuse of the process of the Court ."

"No provision in the Drugs Act 1940 which expressly provides for the Court of Session taking the cognisance of the offence... directly."

"The aforesaid averments do not strictly satisfy the requirement of spelling out the role of the Petitioner Nos.2 to 6."

Gavel Falls: Prosecution in Tatters, Roadmap for Drug Regulators

The petition succeeded emphatically:

"(i) The Writ Petition stands allowed. (ii) The impugned order dated 28 September 2021... stands quashed and set aside. (iii) The proceeding in Criminal Complaint, being Special Case No.32 of 2021, also stands quashed and set aside."

This precedent fortifies procedural rigor in drug prosecutions: Timely testing, sample delivery, and proper cognizance are non-negotiable. Manufacturers gain stronger shields against stale samples; regulators face pressure to streamline. Future cases may see more quashings on similar grounds, potentially easing frivolous probes while upholding public health vigilance.