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2026 Supreme(Bom) 108

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
N.J.J AMADAR, J.
M/s. C.B.Healthcare And Ors. - Petitioners
Versus
Union Of India - Respondent
WRIT PETITION NO.2777 OF 2024
Decided On : 24-03-2026

Advocates Appeared:
For the Petitioner: Mr. Nitin Bhasin with Mr. Vishal N. Nevshe
For the Respondent: Mr. Anilkumar Singh i/by Mr. D.P.Singh , Mr. K.C.Shinde, App

Prosecution quashed for delay in sample testing beyond 60 days without extension under Rule 45 and failure to send sample to manufacturer under Section 23(4)(iii), depriving re-analysis right post shelf-life expiry.

Headnote:(A) Drugs & Cosmetics Act, 1940 - Sections 18, 21, 23(3),(4), 25, 27(d), 32(2), 34; Drugs Rules, 1945 - Rule 45 - Prosecution for manufacture and distribution of not standard quality drug - Sample drawn from medical store - Delay in testing beyond 60 days without seeking extension from Government - Properties of drug may deteriorate rendering analysis suspect - Rule 45 peremptory, explanation by affidavit insufficient - Failure to send one portion of sealed sample to manufacturer despite knowledge - Distributor supplied notice and analyst report instead - Valuable right to retest sample lost due to delay beyond shelf life - Prosecution initiated post expiry amounts to abuse of process - Proceedings quashed. (Paras 11-38)

(B) Drugs Act, 1940 - Section 32(2) read with CrPC, 1973 - Section 193 - Offences under Chapter IV triable by Sessions Court - No direct cognizance by Special Court without committal by Magistrate - Notification designating Special Court does not override CrPC bar. (Paras 40-46)

(C) Drugs Act, 1940 - Section 34 - Vicarious liability of partners - Requires specific averments as to role in conduct of business - Bald assertions insufficient. (Paras 47-52)

Facts of the case:
Sample of tablets drawn from hospital store on 29 November 2016, sent for analysis next day, report of not standard quality issued on 6 July 2017 after 7 months - No portion sent to manufacturer despite request - Complaint filed on 28 September 2021 post expiry in August 2018 - Process issued by Special Judge.

Findings of Court:
Prosecution quashed due to grave procedural violations defeating right to re-analysis - No elaboration needed on vicarious liability or process issuance.

Issues: Delay in sample testing violating Rule 45; non-compliance with Section 23(4)(iii); loss of retest right under Section 25; direct cognizance by Sessions Court; specific role for vicarious liability under Section 34.

Ratio Decidendi: Rule 45 mandates analysis within 60 days, proviso requires extension with reasons - Delay erodes sample sanctity without contemporaneous justification - Inspector must send sample portion to manufacturer whose details disclosed under Section 18A - Cumulative delays and inaction deprive retest right, especially post shelf life, vitiating prosecution.

Result: Writ petition allowed; order issuing process and entire proceedings quashed.

Table of Content
1. petition challenges drugs act prosecution initiation. (Para 1 , 2 , 3)
2. parties dispute procedural delays compliance. (Para 4 , 5 , 6 , 7)
3. court prioritizes drugs act procedural analysis. (Para 8 , 9 , 10)
4. rule 45 mandates 60-day sample testing. (Para 11 , 12 , 13 , 14 , 15 , 16)
5. delayed testing invalidates analyst report. (Para 17 , 18 , 19 , 20 , 21)
6. section 23 requires sample to manufacturer. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28)
7. accused must notify to challenge report. (Para 29 , 30 , 31 , 32)
8. delay defeats retesting right abuse. (Para 33 , 34 , 35 , 36 , 37 , 38)
9. no direct sessions court cognizance. (Para 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46)
10. vicarious liability needs specific averments. (Para 47 , 48 , 49 , 50 , 51 , 52)
11. prosecution quashed as process abuse. (Para 53 , 54)

JUDGMENT :

N.J.J AMADAR, J.

1. Rule. Rule made returnable forthwith, and, with the consent of the learned Counsel for the parties, heard finally.

2. By this Petition under Article 227 of the Constitution of India, the Digitally signed by Petitioners seek to quash and set aside criminal prosecution initiated against Date: 2026.03.24 21:29:55 +0530 the Petitioners in Special Case No.32 of 2021 before the Special Judge, Dadra and Nagar Haveli, Silvasa, for an offence punishable under Section 27 (d) of the Drugs & Cosmetics Act, 1940 (the Drugs Act, 1940).

3. The background facts necessary for the determination of this Petition can be summerized as under :

3.1 The Petitioner No.1 is a Partnership firm. It is engaged in pharmaceutical manufacturing business. Petitioner Nos.2 to 5 are the partners of Petitioner No.1. The Petitioner No.1 manufactures drugs at Baddi, District Solan, Himachal Pradesh. The Petitioner No.1 was holding a valid licence to manufacture FEXINOL-12 – Fexofenadine Hydrochloride Tablets IP. 3.2 Respondent-complainant is a Drugs Inspector appointed under the Drugs Act, 1940. Respondent claimed that, on 29 November 2016, he had visited and inspected the premises of Vinoba Bhave Civil Hospital’s Central Medical Store at Silvasa, and, drawn a sample of FEXINOL-12, Batch No.CBT-400/16, manufactured by the Petitioner No.1. The said sample was purportedly drawn for the purpose of test and analysis by issuing Form No.17. On 30 November 2016, one portion of the sealed sample was allegedly sent by the Respondent to Government Analyst, Central Drugs Testing Laboratory, Mumbai, in Form No.18. The Respondent allegedly received a report in Form No.13 dated 6 July 2017 from the Government Analyst, opining that the sample was ‘not of standard quality’.

3.3 Thereupon, Respondent issued a show cause notice along with one sealed portion of the sample, to the Central Medical Store, Civil Hospital, Silvasa, directing the store to stop usage / distribution and to disclose the name / address of the firm/ person from whom the said drug was obtained.

3.4 Eventually, the distribution chain of the subject drug was traced back to Petitioner No.1. A joint investigation was carried out by the Deputy Drugs Controller (I), CDSCO, Baddi Zone, alongwith State FDI Officials. A joint investigation report dated 4 September 2017 was prepared. Thereafter, on 6 November 2019 sanction to initiate prosecution against the Petitioners was obtained from the Drugs Controller General of India.

3.5 Armed with the said sanction, the Respondent filed a complaint before the Special Judge at Silvasa on 28 September 2021. By an order dated 28 September 2021, the learned Special Judge, Dadra and Nagar Haveli, Silvasa, was persuaded to issue process against the Petitioners for an offence punishable under Section 27 (d) of the Drugs Act, 1940.

4. The Petitioners have assailed the prosecution by raising a slew of exceptions. Firstly, in clear violation of Rule 45 of the Drugs Rules, 1945, there was an inordinate and unexplained delay in testing the samples. Secondly, there was non-compliance of the mandate contained in Section 23 (4)(ii) of the Drugs Act, 194

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