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2024 Supreme(Guj) 2168

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SANDEEP N. BHATT, J.
Jigar Amrutlal Patel – Appellant
Versus
State Of Gujarat & Anr. – Respondents
R/SPECIAL CRIMINAL APPLICATION (POSSESSION OF MUDDAMAL) NO. 4304 of 2023
Decided on : 11-10-2024

Advocates:
Advocate Appeared:
For the Appellant : AKASH A SINGH
For the Respondent: MS. DIVYANGNA JHALA

Possession of drugs without proper licensing constitutes a contravention of the Drugs and Cosmetics Act, justifying seizure and requiring trial for legality.

Headnote:(A) Constitution of India - Article 226 - Criminal Procedure Code, 1973 - Section 451 - Petition to quash orders for the release of seized goods - The petitioner, engaged in the production of chemicals, sought the release of goods seized under the Drugs and Cosmetics Act, 1940, asserting no nexus with any offence. The court found the seizure justified, noting the goods were prima facie drugs and required confiscation under the Act. (Paras 1, 4.1, 6.3, 6.6)

(B) Drugs and Cosmetics Act, 1940 - Sections 18 and 31 - The court emphasized that possession of drugs without proper licensing constitutes a contravention of the Act, and the necessity of a trial to determine the legality of the seizure. (Paras 6.2.2, 6.5.1)

Facts of the case:
The petitioner’s goods were seized under the Drugs and Cosmetics Act, with subsequent applications for release rejected by the Chief Judicial Magistrate and Sessions Court.

Findings of Court:
The court upheld the lower courts' decisions, confirming the legality of the seizure and the necessity for trial.

Issues: The main issues included the legality of the seizure and the necessity of a license for the goods in question.

Ratio Decidendi: The court ruled that the seized goods were prima facie drugs, justifying their seizure under the Act, and that the legality of the seizure could only be determined through a proper trial.

Result: Petition dismissed.

Judgement Key Points

Reference to "Sunderbhai" in the document:

The term "Sunderbhai" appears in paragraph (!) , where the court refers to a decision as follows:

"It is also fruitful to refer the decision of the Hon’ble Apex Court in the case of Sunderbhai Ambalal Desai vs. State of Gujarat reported in 2003 (1) GLH 307
'19. However, these powers are to be exercised by concerned Magistrate. We hope and trust that the concerned Magistrate would take immediate action for seeing that powers under Section 451 CrPC are properly and promptly exercised and articles are not kept for long time at the police station, in any case for not more than 15 days to 1 month. This object shall also be achieved if there is proper supervision by the Registry of the concerned High Court in seeing that the rules framed by the High Court with regard to such article are implemented properly....'"

Context of the reference (!) : - This is cited by the petitioner's advocate in arguments for release of seized goods under Section 451 CrPC. - The court acknowledges the ratio in (!) but distinguishes it, noting no dispute with the principle but refusing interim release due to prima facie violations under the Drugs and Cosmetics Act requiring trial ( (!) ). - The petition is ultimately dismissed in (!) , upholding denial of release.


JUDGMENT :

1. The present petition is preferred under Article 226 of the Constitution of India and Section 451 of the Criminal Procedure Code, 1973, to quash and set aside the order dated 19.01.2023 passed in Criminal Misc. Application by the Chief Judicial Magistrate, Palanpur, District Banaskatha for release of Muddamal/Goods under the provisions of Section 451 of the Code of Criminal Procedure, 1973, and further to quash and set aside the order dated 16.02.2023 passed by the Sessions Court, Palanpur, Banaskatha in Criminal Revision No.07 of 2023.

2. Brief facts of the case are as under:

2.1 The petitioner has a partnership firm named Gurukrupa Industries which has 3 partners in total which legally produce chemicals through all kinds of chemical processes and even have factory license and wholesale License No.20B 21B for sale of medicine, wherein drugs are stored and sold in bulk and is engaged in the production of raw materials only and do not manufacture or sell any final product or medicine. The petitioner's firm procures this starting material from another company and stores it at a licensed premise at Chandisar and further such material is brought to the production unit as required and raw materials are manufactured and is in agreement with Brischem Sciences Pvt. Ltd from 01.06.2022. That, the petitioner's firm being under the agreement which supply with the Progesterone crude to Brischem Sciences Pvt. Ltd under the agreement and only to it. That, on 12.09.2022 Respondent No.2 seized the goods and issued Form-16 On 12.09.2022, Respondent No.2 seized the goods and issued Form-16 under The Drug and Cosmetic Act, 1940 being 16 light wooden color drum labeled as 4s Progesterone (Appro. Weight 480 Kg with drum), 6 light wooden color drum labeled as Progesterone IP (Appro. Weight 85 with drum), 3 Blue Color drum labeled as 4s Progesterone IP Batch No. PAS-FP/1/22/033 Manufactured by Birschem Sciences Pvt. Ltd (Appro. Weight 82 with drum) amounting to a sum of Rs. 80 Lakhs. Thereafter, the Respondent No.2 preferred application before Chief Judicial Magistrate, Palanpur seeking custody of the Muddamal seized dated 13.09.2022 and the Court below was pleased to pass the order within it vide order dated 13.09.2022. Thereafter, again preferred another application before Court below. Thereafter, the petitioner herein approached and preferred application before the Chief Judical Magistrate, Palanpur for release of Muddamal under provisions of Section 451 of Code of Criminal Procedure, 1973 dated 22.09.2022 which the Court Below was pleased to reject vide order dated 19.01.2023. Meanwhile, the Government Analyst Report bearing No.9911/2022 was served on petitioner wherein the report confirms the sample conforms to the standards laid down for Progesterone in IP 2018. Thereafter, the petitioner being dissatisfied by the order of the Chief Judicial Magistrate preferred Criminal Revision Application No.7 of 2023 dated 31.1.2023 which the Court Below was rejected vide order dated 16.02.2023. Under this circumstance the muddamal/goods came to be seized. Hence, this petition has been preferred.

3. Heard Mr. Akash A. Singh, learned advocate for the petitioner and Ms. Divyangna Jhala, learned APP for the respondent – State.

4.1 Mr. Akash A. Singh, learned advocate for the petitioner has submitted that the petitioner is nowhere involved in the commission of offence and the seizure of muddamal/goods has no nexus with any commission of any offence in whatsoever manner. Therefore, the present petition requires consideration and the said muddamal/goods may be released. It is also submitted that as the petitioner is engaged in the business of manufacturing the intermediary and not the final and finished product the petitioner being prosecuted and due to which petitioner has to go through grave loss even otherwise it is contrary to legislative intent behind the Durgs and Cosmetic Act, 1940. Therefore, the present petition requires consideration and the sa

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