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2017 Supreme(SC) 827

SUPREME COURT OF INDIA
Ranjan Gogoi, Navin Sinha, JJ.
Laborate Pharmaceuticals India Ltd And Ors. - Petitioners
Versus
State of Tamil Nadu (With Interim Relief And Office Report) - Respondent
Criminal Appeal No. 364 of 2017 (Arising Out of Slp (Crl.) No. 6453 of 2016)
Decided On : 20-02-2017

Advocates:
Advocate Appeared:
For the Petitioners: Mr. V. Giri, Mr. Nikhil Goel, Ms. Naveen Goel, Mr. Ashutosh Ghade
For the Respondents: Mr. Subramonium Prasad, Mr. M. Yogesh Kanna, Ms. Nithya, Mrs. Mahalakshmi, Mr. Partha Sarathi

The denial of the right to have the sample analyzed in the Central Laboratory and the delay in taking cognizance of the complaint, which were not attributable to the appellants, led to the quashing of the criminal trial against them.

Headnote:

Section 482 of the Code of Criminal Procedure, 1973 - Criminal Procedure - Drugs and Cosmetics Act, 1940 - Denial of right to have sample analyzed in Central Laboratory - Violation of valuable right of accused - Quashing of criminal trial

Fact of the Case:

The appeal was directed against the order of the High Court of Madras which refused to interdict the criminal proceeding against the appellant-company and its directors. The sample of Cherry Lab Cough Syrup was taken from a retailer and sent for analysis, resulting in a report that the sample did not conform to the standard quality. The appellant requested re-analysis, which was refused on the ground of delay. The prosecution took cognizance of the offences alleged after the shelf life of the drug had expired.

Finding of the Court:

The court found that the valuable right of the appellant to have the sample analyzed in the Central Laboratory had been denied due to defaults committed by the prosecution and the court. It concluded that the prosecution, if allowed to continue, would be a lame prosecution, and thus, interdicted the criminal trial against the accused appellants.

Issues: Violation of the right to have sample analyzed in Central Laboratory, delay in taking cognizance of the complaint, and the consequences of such defaults on the prosecution.

Ratio Decidendi: The court held that the denial of the right to have the sample analyzed in the Central Laboratory and the delay in taking cognizance of the complaint were not attributable to the appellants, and thus, the consequences thereof could not work adversely to their interest. It concluded that the prosecution, if allowed to continue, would be a lame prosecution due to the violation of the valuable right of the accused.

Final Decision: The criminal trial against the accused appellants was interdicted, and the order of the High Court was set aside.

Judgement Key Points

Key Points: - The appeal was against the High Court's order refusing to interdict criminal proceedings against the appellant-company and its directors [1000597540002]. - A sample of Cherry Lab Cough Syrup was taken on September 5, 2011, and a report dated January 27, 2012, indicated it did not conform to standard quality [1000597540004]. - The appellant requested re-analysis by the Central Drug Laboratory, Kolkata, on September 13, 2012, which was refused as belated, citing Section 25(3) of the Drugs and Cosmetics Act, 1940 [1000597540005]. - The prosecution failed to send a portion of the sample to the appellant-manufacturer as required by Section 23(4)(iii) of the Act [1000597540006]. - The cognizance of the alleged offences was taken on March 4, 2015, though the complaint was filed on November 28, 2012, and the drug had lost its shelf life by November 2012 [1000597540007]. - The valuable right of the appellant to have the sample analyzed in the Central Laboratory was denied due to defaults by the prosecution and the court [1000597540008]. - The delay in sending the sample and taking cognizance was not attributable to the appellants [1000597540008]. - The court held that continuing the prosecution would be a "lame prosecution" due to the violation of the accused's rights [1000597540008]. - The criminal trial against the accused appellants was interdicted, and the High Court's order was set aside [1000597540009]. - The criminal case pending before the XV Metropolitan Magistrate, George Town, Chennai, was quashed [1000597540009].

What are the rights of an accused regarding the re-analysis of a drug sample?

What are the consequences of the prosecution's failure to provide a sample to the manufacturer for analysis?

What are the consequences of delay in taking cognizance of a complaint on the prosecution of an accused?


ORDER :

Leave granted

2. We have heard the learned counsels for the parties.

3. This appeal is directed against the order of the High Court of Madras dated 6th July, 2016 by which the criminal proceeding against the appellant-company and its directors (appellant nos.1 to 5) and appellant no.6 - Vice President (Operations), person responsible for conduct of business has been refused to be interdicted by the High Court in exercise of its power under Section 482 of the Code of Criminal Procedure, 1973.

4. The facts lie in a short compass and have to be noticed as the same would be determinative of the legal issues that having been raised in the present appeal.

5. A sample of Cherry Lab Cough Syrup was taken on 5th September, 2011 from the medical shop of one S. Serumathi, a retailer. One part of the said sample was sent for analysis by the Government Analyst who submitted a report dated 27th January, 2012 to the effect that the sample did not conform to the standard quality.

6. A show cause notice was sent to the appellant no.1-Company on 22nd March, 2012 along with a copy of the report of the Government Analyst. The appellant sent its reply on 14th May, 2012. In the said reply, the appellant-Company did not contest the findings of the Government Analyst and also did not indicate that it was proposing to adduce evidence contrary to the report of the Government Analyst. While the matter was so situated, on 10th August, 2012 the appellant received a part of the sample from the Drug Inspector which was sent by it to a private laboratory for analysis. On receipt of the report from the private laboratory which was inconsistent with the report of the Government Analyst the appellant indicated that it would like to adduce contrary evidence and to have the sample in the custody of the Court retested and re-analysed by the Central Drug Laboratory, Kolkata. This was on 13th September, 2012. The said request was refused on the ground that under the provisions of Section 25(3) of the Drugs and Cosmetics Act, 1940 (hereinafter referred to as "the Act"), the manufacturer was required to exercise the aforesaid option within 28 days from the date of receipt of the show cause notice i.e. 22nd March, 2012 and that the request made in the present case was belated. The High Court took the view that such exercise of option by the appellant was beyond the time contemplated by the provisions of the Act and there is no infirmity in the prosecution which has to be brought to its logical conclusion. Aggrieved this appeal has been filed.

7. A reading of the provisions of Section 23(4) and 25 of the Act would indicate that in the present case the sample having been taken from the premises of the retailer had to be divided into four portions; one portion is required to be given to the retailer; one portion is required to be sent to the Government Analyst and one to the Court and the last one to the manufacturer whose name, particulars, etc. is disclosed under Section 18A of the Act. In the present case, admittedly, one part of the sample that was required to be sent to the appellant (manufacturer) under Section 23(4)(iii) of the Act was not sent. Instead, what was sent on 22nd March, 2012 was only the report of the Government Analyst. When the part of the sample was not sent to the manufacturer, the manufacturer could not have got the same analysed even if he wanted to do so and, therefore, it was not in a position to contest the findings of the Government Analyst. In the present case, the sample was sent to the appellant-manufacturer on 10th August, 2012 and on 13th September, 2012 the appellant had indicated its desire to have another part of the sample sent to the Central Laboratory for re-analysis. This was refused on the ground that the aforesaid request was made much after the stipulated period of 28 days provided for in Section 25(3) of the Act.

8. The cognizance of the offences alleged in the present case was taken on 4th March, 2015 though it appears that t


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