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The Supreme Court of India, in three consolidated criminal appeals (Nos. 1155, 1156, and 1157 of 2026), addressed challenges to proceedings under Sections 17(b), 17(c), 18(a)(i), and 27(d) of the Drugs and Cosmetics Act, 1940, read with Rule 96 of the Drugs and Cosmetics Rules, 1945, concerning alleged misbranding of drugs.[p_1][p_11][p_13][p_140]

In the lead matter (Appeal No. 1155), a private complaint on 05.01.2006 alerted authorities to labeling discrepancies on a pentavalent vaccine's carton (claiming "Easy Five") versus its vial (labeled "Easy Four," lacking Hepatitis B component), manufactured by respondent Panacea Biotec Ltd.[p_8][p_9][p_12][p_13][p_37][p_52][p_66] The Drugs Inspector (a public servant authorized under Section 32 of the Act) investigated from 16.01.2006, seizing documents and tracing the supply chain, with accused identities confirmed by 18.04.2006.[p_10][p_36][p_68][p_73][p_74][p_92][p_104] A formal complaint was filed on 20.01.2009 before the Chief Judicial Magistrate, Thrissur, who took cognizance and issued summons after condoning delay under Section 473 CrPC.[p_11][p_16][p_93] The Kerala High Court quashed proceedings against non-local respondents for the Magistrate's failure to conduct a Section 202 CrPC inquiry.[p_18]

The Court held that, under Section 469(1)(c) CrPC, the three-year limitation period (per Section 468(2)(c) CrPC for offences punishable up to three years' imprisonment) commences from the date the competent authority first knows the accused's identity during investigation, not the initial complaint or offence date—here, expiring on 17.04.2009, rendering the 20.01.2009 complaint timely.[p_75][p_91][p_92][p_104] Cognizance on 29.01.2009 and summons post-condonation were valid.[p_16][p_104]

On territorial jurisdiction, Section 202 CrPC (requiring inquiry if accused reside outside the Magistrate's area) must be harmoniously construed with the proviso to Section 200 CrPC, exempting examination of public servant complainants acting in official duty; thus, no mandatory postponement or inquiry was required, placing public servant complaints on a distinct pedestal to prevent undue harassment while ensuring sufficiency of grounds.[p_105][p_114][p_117][p_120][p_122]

In Appeal No. 1156 (by respondents), the limitation challenge failed for the same reasons.[p_132][p_133] In Appeal No. 1157 (by Drugs Inspector re substandard syringes), the High Court quashed for Section 202 non-compliance and insufficient Section 34 Act averments against directors; the Court reversed, holding Section 202 inapplicable as above and Section 34 culpability (in-charge/responsible persons) a trial-stage factual issue.[p_136][p_141][p_146][p_147]

Impugned High Court orders were set aside; cognizance/summons orders upheld; fresh summons directed; proceedings to continue per law, without prejudice to trial merits.[p_126][p_147][p_149]
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2026 Supreme(SC) 215

AHSANUDDIN AMANULLAH, S. V. N. BHATTI
State Of Kerala – Appellant
Versus
Panacea Biotec Ltd. – Respondent





Advocates appeared:
For the Petitioner(s): Mr. S. S. Shroff, AOR Mr. Aashish Gupta, Adv. Mr. Aditya Mukherjee, Adv. Mr. Krishna Tangirala, Adv. Mr. Naman Kumar, Adv. Mr. Harshad V. Hameed, AOR Mr. Dileep Poolakkot, Adv. Mrs. Ashly Harshad, Adv. Mr. Mahabir Singh, Adv. Dr. Arunender Thakur, Adv. Mr. Anshul Saharan, Adv.
For the Respondent(s): Mr. K. Rajeev, AOR Mr. Shinoj K. Narayanan, Adv. Ms. Niveditha R. Menon, Adv. Mr. Aditya Verma, Adv. Mr. Tarun Kumar, Adv. Mr. Harshad V. Hameed, AOR Mr. S. S. Shroff, AOR Mr. Aashish Gupta, Adv. Mr. Aditya Mukherjee, Adv. Mr. Krishna Tangirala, Adv. Mr. Naman Kumar, Adv.

Headnote: Read headnote

JUDGMENT :

AHSANUDDIN AMANULLAH, J.

The matters are dealt with as follows:

Criminal Appeal No. 1155 of 2026 of 2026 [@ SLP (CRL.) No.4524/2023]

1.1 Leave granted.

2. The present appeal assails the Final Judgment and Order dated 14.07.2022 passed in Crl. M.C. No.2802 of 2012 (hereinafter referred to as the ‘Impugned Order’) passed by a learned Single Judge of the High Court of Kerala at Ernakulam (hereinafter referred to as the ‘High Court’).

FACTUAL MATRIX:

3. On 21.10.2005, one Mr. Joy Mandi was informed, about an alleged discrepancy in the labelling of the subject drug, alleged to be manufactured and sold by the Respondents, by the Medical Officer, Primary Health Centre, Thrissur, Kerala.

4. On 05.01.2006, Mr. Joy Mandi filed a Complaint with Appellant No.2-Drug Inspector regarding the discrepancy in the labelling of the drug alleged to be manufactured and sold by the Respondents. Admittedly, no bill of purchase of the drug was placed o

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