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2023 Supreme(Bom) 158

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Milind N. Jadhav, J.
M/s. Lifeline Medical And General Stores Chemist And Drugs - Appellant
Versus
Assistant Municipal Commissioner Food And Drugs Administration And Licensing Authority, Maharashtra State & Ors. - Respondents
Writ Petition No. 700 of 2023
Decided On : 13-02-2023

Advocates:
Counsel for Appearing Parties
Satish K. Kumbhar, Advocate, P.G. Sawant, Advocate

The court emphasized the importance of considering the track record and explanations of the accused when imposing penalties under the Drugs and Cosmetics Act, 1940 and Rules, 1945.

Headnote:

Drugs & Cosmetics Act - Suspension of License - Rule 66(1) & 67(h) (1) of Drugs & Cosmetics Act, 1940 - The court quashed and set aside the impugned Order dated 29/06/2022 passed by the Minister Appeal No. 435 of 2018, thereby suspending the Certificate of License for 90 days instead of termination/cancellation.

Fact of the Case:

The Petitioner, a medical store owner, had his license suspended for 90 days due to alleged violations of the Drugs and Cosmetics Act, 1940 and Rules, 1945. The Petitioner challenged the suspension through a Writ Petition.

Finding of the Court:

The court found that the Petitioner had been conducting business without blemish for 17 years and had provided explanations for the alleged violations. The court also noted that the suspension was harsh and not commensurate with the reasons provided.

Issues: The issues revolved around the alleged violations of the Drugs and Cosmetics Act, 1940 and Rules, 1945, and the appropriateness of the suspension of the Petitioner's license.

Ratio Decidendi: The court held that the suspension was not justified given the Petitioner's track record and the inadequacy of the reasons provided for the suspension.

Final Decision: The court quashed and set aside the suspension order, allowing the Petitioner to resume business under the license granted by the Competent Authority.

JUDGMENT

Milind N. Jadhav, J. - By the present Writ Petition, the Petitioner has prayed for the following reliefs:-

     'a. That this Hon'ble Court be pleased to issue writ of certiorari or any other appropriate writ, order or direction under article 227 of the Constitution of India, whereby this Hon'ble Court be pleased to quash and set aside the impugned Order dated 29/06/2022 passed by this Hon'ble Minister Appeal No. 435 of 2018, thereby the order dated 10/09/2019 passed by the Licensing Authority, partly allowed and suspended the Certificate of License for 90 days (from 09/01/2023 to 08/04/2023) instead of termination /cancellation.

    c. The Impugned order dated 30/07/2018 passed by the Assistant Commissioner (Medicine) & Licensing Authority, Food and Drug Administration, Maharashtra State, Pen, Raigad, in Case No. Cancellation order /29 486-2018/2, under rule 66(1) & 67(h) (1) of Drugs & Cosmetics Act, 1940 and Rules 1945 thereunder as well as Show Cause Notice 18/07/2018 issued by the Assistant Commissioner (Medicine) & Licensing Authority, Food and Drug Administration, Maharashtra State, Pen, Raigad, kindly be quashed and set aside.'

    2. Respondent Nos.1 to 3 are the statutory authorities established under the State.

    3. Briefly stated, the facts are as under:-

    3.1. Petitioner is carrying on business of General Stores of Chemist and Drugs (Medial Store/Shop) at Shop No.3, Z-Complex, Opp. Raut Hospital, Near S.T. Stand, Mhasla, District - Raigad since the last 17 years and holds a valid license since 2008.

    3.2. The said license has been renewed from time to time since 2008 and is valid and subsisting as under:-

    License Form

    License No.

    From

    To

    20

    256347

    30/01/2008

    29-01-2023

    21

    256349

    30/01/2008

    29-01-2023

    20-C

    256348

    01-01-2013

    29-01-2023

    20-B

    6702

    01-01-2013

    29-01-2023

    20-B

    3703

    01-01-2013

    29-01-2023

    20-C

    256348

    30-01-2023

    29-01-2028

    3.3. On 08.06.2018, Mr. U.G. Bhagmare, Drug Inspector, Raigad visited the Medical Store of the Petitioner and carried out inspection. After the inspection he recorded his observations in writing in the prescribed format and prepared Inspection Report.

    3.4. On 18.07.2018, Show Cause Notice was issued to Petitioner under the Drugs and Cosmetics Act, 1940 and Rules, 1945 (for short 'the said Act and Rules') alleging that Petitioner had violated Sections 18(c) and Rules 65(2), 65(3)(1), 65(6), 65(4)(i), 65(4)(3), 65(4)(4), 65(4)(4)(ii) of the said Act.

    3.5. On 25.07.2018, Petitioner filed reply to the Show Case Notice offering explanation.

    3.6. On 30.07.2018, Order was passed by Respondent No.1 - the Assistant Commissioner Food & Drugs Administration & Licensing Authority, Maharashtra State holding that Petitioner had violated the conditions of the license and as per power of vested under Rules 66(1) & 67 (h) of the said Act and Rules, Petitioner's license was cancelled from 29.08.2018 onwards.

    3.7. Being aggrieved Petitioner filed Appeal before the Appellate Authority, who by an Order dated 01.09.2018, granted temporary stay to the Order of Respondent No.1. The Appeal came to be decided subsequently by Order dated 29.06.2022, wherein the Appeal was partly allowed and the certificate of license was suspended for 90 days, starting from 09.01.2023 till 08.04.2023.

    3.8. Hence, the present Writ Petition came to be filed.

    4. Mr. Kumbhar, learned Advocate appearing for the Petitioner has made the following submissions:-

      (i) that the Impugned Notice as well as Orders are grossly erroneous and contrary to judicial norms as laid down under the law disregarding the established principles of natural justice;

      (ii) that the Order passed by Respondent No.2 suspending the license for 90 days is against the provisions of law and therefore not maintainable;

      (iii) that Respondent No.2 has not considered the provisions or exceptions as mentioned in the said Act and Rules before passing the

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