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2026 Supreme(HP) 107

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
SANDEEP SHARMA, J.
Hem Raj Thakur – Appellant
Versus
State of Himachal Pradesh – Respondent
Cr. MMO No. 716 of 2024
Decided On : 02-04-2026

Advocates Appeared:
For the Appellants : Anand Sharma, Karan Sharma
For the Respondents: Rajan Kahol , Vishal Panwar, Ravi Chauhan, Anish Banshtu

A stockist cannot be held liable for drug quality violations if not impleaded in the prosecution, highlighting the necessity of prosecuting the manufacturer under the relevant legal framework.

Headnote:(A) Bharatiya Nagrik Suraksha Sanhita, 2023 - Section 528 - Drugs and Cosmetics Act, 1940 - Sections 18 and 19(3) - Quashing of complaint against drug distributor - The court held that the trial court did not appropriately consider the immunity available under Section 19(3) to individuals not directly responsible for drug manufacturing. The petitioner, being the Authorized Signatory of a licensed stockist, cannot be held liable for the quality violation without the prosecution of the manufacturer. The prosecution against the petitioner is bound to fail as the manufacturer was not impleaded as an accused, and the complaint was quashed. (Paras 10, 31, 40, 42)

Facts of the case:
The petitioner was accused of selling sub-standard drugs without manufacturing concerns and sought to quash the complaint filed against him by the Drug Inspector, claiming immunity under Section 19(3) as he was not the manufacturer.

Findings of Court:
The court found that the failure to include the manufacturing firm as an accused entity invalidates the prosecution against the petitioner; thus quashing the complaint.

Issues: Whether the petitioner, as a stockist, can be prosecuted for drug quality issues when the manufacturer is not prosecuted, and whether he holds immunity under Section 19(3) of the Act.

Ratio Decidendi: The court decided that the prosecution's case lacked validity since the manufacturer had not been included in the complaint, hence the petitioner could not be held liable. The proceeding was determined to be an abuse of process due to the clear likelihood of prosecution failure.

Result: Complaint quashed and petitioner discharged.

Table of Content
1. petitioner seeks to quash legal complaint. (Para 1)
2. facts surrounding the drug quality and inspections. (Para 2 , 3 , 4 , 5)
3. complaint arises from adverse drug analysis. (Para 6)
4. the trial court has acknowledged the complaint. (Para 7 , 8)
5. petitioner's defense regarding liability as a distributor. (Para 9 , 10 , 11)
6. prosecution claims sufficient evidence against petitioner. (Para 12)
7. court reviews basis for quashing proceedings. (Para 13 , 14)
8. legal standards for quashing under section 482. (Para 15 , 16 , 17 , 18 , 19)
9. court considers abuse of process and justice. (Para 20 , 21)
10. jurisdiction of high court under section 482 outlined. (Para 22 , 23)
11. liability provisions under section 18 and reasons for complaint. (Para 24 , 25 , 26)
12. analysis of immunity under section 19(3) for the petitioner. (Para 27 , 28 , 29)
13. evidence regarding the drug supply chain explained. (Para 30 , 31)
14. emphasis on necessity of including manufacturer in prosecution. (Para 32 , 33 , 34)
15. legal rationale for not proceeding against petitioner alone. (Para 35 , 36)
16. precedents support dismissal of prosecution against proxy. (Para 37 , 38)
17. court resolves to quash proceedings to prevent injustice. (Para 39 , 40 , 41)
18. final order quashing the complaint against the petitioner. (Para 42)

JUDGMENT :

SANDEEP SHARMA, J.

1. By way of instant petition filed under Section 528 of Bharatiya Nagrik Suraksha Sanhita, 2023 (hereinafter, ‘ BNSS ’), prayer has been made on behalf of the petitioner for quashing of complaint No. HFW- HMR(PROS) DRUGS/10-09, registered as Complaint No. 58-1 of 2010 titled as State of Himachal Pradesh (through Drugs Inspector H.Q. Hamirpur) v. Anil Chand and others as well as consequent proceedings pending in the court of learned Judicial Magistrate First Class, Nadaun, Hamirpur.

2. For having bird’s eye view of the matter, facts relevant for adjudication of the case at hand are that on 08.01.2009 Drug Inspector, Headquarters, Hamirpur alongwith Shri Jagdish Chand, Peon, visited the premises of M/s Shri Shri Medical Store, Opposite Bus Stand Nadaun, District Hamirpur, Himachal Pradesh. Drug Inspector concerned after having noticed that Mr. Anil Chand was conducting business of stocking and exhibiting for sale of allopathic drugs over the counter via his retail drugs licence no. HMR/2006/389 and HMR/2006/390 valid upto 29.3.2011, picked up three samples of drug namely Chlorpheniramine Maleate Tablets (C.P. Sys-4) B. No. LGT- 8106, expiry date 08/2011, manufactured by M/s Legen Healthcare, Plot No.20, Sector 05, Parwanoo, District Solan, Himachal Pradesh for chemical analysis and as per procedure, sent the same for chemical examination to C.T.L. Kandaghat.

3. However, vide report dated 31.10.2009 sample of aforesaid Chlorpheniramine Maleate was found “not of standard quality as defined in the Drugs and Cosmetics Act, 1940 and Rules there under” for the reason that “the sample of Chlorpheniramine Maleate tablets contained less content of Chlorpheniramine Maleate i.e. 37.25 % against the prescribed limit i.e. 95% to 105% as per I.P.

4. After receipt of aforesaid ‘adverse’ analysis report, Drug Inspector concerned, vide letter dated 09.11.2009, sent a communication to Anil Chand, Pharmacist, In Charge M/s Shri Shri Medical Store to disclose the information as required under Section 18 - A of the Act, who in turn, vide his reply, disclosed that the said drug was purchased by him from M/s Aar Kay Surgicals, Tibhra Road, Sujanpur, Village and Post Office Sujanpur, District Hamirpur, vide invoice No. AKV=-908 dated 23.12.2008. Drug Inspector concerned, issued letter dated 02.12.2009 to M/s Aar Kay Surgicals, Sujanpur alongwith enclosing therewith copy of adverse analysis report and purchase invoice, asking it to disclose the information as required under Section 18 -A of the Act, who in turn vide letter dated 09.12.2009, disclosed that the drug in question was purchased by it from M/s Generica Indi






































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