IMPORTANT POINT
Rules 53 and Rule 64 of the Narcotic Drugs and Psychotropic Substances Rules, 1985 are not source of authority for prohibiting the DEALING IN narcotic drugs and psychotropic substances. Source is Section 8 of the Narcotic Drugs and Psychotropic Substances Act, 1985.

JUDGMENT

Chelameswar, J.

1. Leave granted in the special leave petitions.

2. This batch of matters is listed pursuant to various orders of this Court opining that these matters are required to be considered by a larger Bench.

3. The first of such orders is dated 20th April, 2007 made in Criminal Appeal No.644 of 2007. By the said order, leave was granted in SLP (Crl.) No.4976 of 2006. The order reads as follows:-

"Our attention has been invited by the learned counsel to two decisions of this Court; namely, a decision of 3-Judge Bench in Collector of Customs, New Delhi vs. Ahmadalieva Nodira (2004) 3 SCC 549 and subsequent decision of 2-Judge Bench in State of Uttaranchal vs. Rajesh Kuamr Gupta (2007) 1 SCC 355.

Reference was also made of Section 80 of the Narcotic Drugs and Psychotropic Substances Act, 1985 which reads as under:

"80. Application of the Drugs and Cosmetics Act, 1940 not barred. - The provisions of this Act or the rules made thereunder shall be in addition to, and not in derogation of, the Drugs and Cosmetics Act, 1940 (23 of 1940) or the rules made thereunder.

In our opinion, in view of the fact that the effect of Section 80 requires to be considered, we grant leave and direct the Registry to place the papers before the Hon'ble the Chief Justice for placing the matter before a 3-Judge Bench.

4. Each of the remaining matters came to be tagged on to Criminal Appeal No. 644 of 2007 on the ground that the issue involved in each of these cases is identical with the issue involved in Criminal Appeal No. 644 of 2007.

5. All these cases pertain to prosecution under the provisions of the Narcotic Drugs and Psychotropic Substances Act, 1985 (hereinafter referred to as "the Act"). Each one of the accused is alleged to be in possession of some psychotropic substance mentioned in the Schedule to the Act. Eventually, the question is whether persons accused of committing an offence under the Act could be enlarged on bail in view of the stipulations contained under Section 37 of the Act. In some of these cases, bail was granted by the concerned High Court and in some cases, bail was rejected. Aggrieved by such orders, either the State or the accused preferred these appeals.

6. Section 37[Offences to be cognizable and non-bailable.-

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974)

(a) every offence punishable under this Act shall be cognizable;

(b) no person accused of an offence punishable for offences under section 19 or section 24 or section 27 A and also for offences involving commercial quantity shall be released on bail or on his own bond unless

(i) the Public Prosecutor has been given an opportunity to oppose the application for such release, and

(ii) where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail.

(2) The limitations on granting of bail specified in clause (b) of sub-section (1) are in addition to the limitations under the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force, on granting of bail.] of the Act stipulates that all the offences punishable under the Act shall be cognizable. It further stipulates that:-

(1) persons accused of an offence under Section 19, 24, 27A or persons accused of offences involved in "commercial quantity"[ Section 2(viia): " Commercial quantity", in relation to narcotic drugs and psychotropic substances, means any quantity grater than the quantity specified by the Central Government by notification in the Official Gazette.] shall not be released on bail, unless the public prosecutor is given an opportunity to oppose the application for bail; and

(2) more importantly that unless "the Court is satisfied that there are reasonable grounds for believing" that the accused is not guilty of such an offence. Further, the Court is also required to be satisfied t