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2025 Supreme(J&K) 206

IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT SRINAGAR
Sanjay Dhar, J.
M/S Nava Healthcare Pvt. Ltd. - Petitioner
Versus
UT of J&K – Respondent
CRM(M) No.453 of 2022 c/w CRM(M) No.454 of 2022
Decided On : 21-02-2025

Advocates Appeared:
For the Petitioner:Mr. Sikander Hayat Khan, Advocate.
For the Respondent: Mr. Syed Musaib, Dy. AG.

Cognizance of offences under the Drugs and Cosmetics Act requires adherence to procedural mandates, especially under Section 202 of Cr. P. C when the accused is beyond jurisdiction.

Headnote:(A) Drugs and Cosmetics Act - Sections 18(a)(1), 18A, 27(d), and 28 - Prosecution of accused for manufacturing and marketing substandard drugs - Complaint filed by Drug Control Officer for alleged violations after testing drug samples - Order by trial Magistrate for cognizance challenged on grounds of non-compliance with procedural requirements - Section 202 of Cr. P. C necessitates preliminary enquiry for accused residing outside jurisdiction - Test report considered lacked necessary compliance and therefore challenge was valid. (Paras 1, 4, 20, 21)

(B) Cognizance cannot be taken unless all procedural prerequisites are satisfied, particularly when accused is outside jurisdiction, emphasizing the requirement for a proper enquiry. (Paras 16, 20)

(C) Directors may only be prosecuted when specific roles in the alleged offences are established in the complaint. (Paras 9, 10)

Facts of the case:
The respondent filed a complaint against the petitioners and others for violations of drug standards after samples tested failed to meet quality specifications. The petitioners contend that proper procedures were not followed, particularly regarding the testing of drug samples and the specifics of their directors' alleged involvement.

Findings of Court:
The trial court's order issuing process against the petitioners was set aside, and a direction was made for the trial court to conduct a preliminary enquiry under Section 202 of Cr. P. C.

Issues: Whether proper procedures were followed for filing the complaint and cognizance of the offences against the petitioners and their directors was appropriate, keeping in mind the jurisdiction and requirements of the law.

Ratio Decidendi: The need for a preliminary enquiry under Section 202(1) of the Cr. P. C is obligatory when the accused resides beyond the jurisdiction, and the trial court erred in not complying with this legal requirement.

Result: Petitions allowed; impugned order set aside.

Table of Content
1. overview of the complaint and allegations (Para 1 , 2 , 3 , 4 , 5 , 6)
2. petitioners' challenges to complaint and processes (Para 7 , 9 , 10 , 12 , 14)
3. court's evaluations of arguments and legal processes (Para 8 , 11 , 13 , 16 , 20)
4. applicability and implications of section 202 (Para 15 , 18 , 19)
5. outcome and directives for trial court (Para 21 , 22)

JUDGMENT :

Sanjay Dhar, J.

1. Through the medium of present judgment, the afore- titled two petitions arising out of the same complaint filed by the respondent against the petitioners and co-accused before the Court of Chief Judicial Magistrate, Anantnag, are proposed to be disposed of.

2. The petitioners, who happen to be the accused in the impugned complaint, have challenged the complaint filed by the respondent against them before the trial Magistrate. By virtue of the impugned complaint, prosecution for offences under Section 18(a)(1) read with Section 27(d), Section 18A read with Section 28 of the Drugs and Cosmetics Act has been launched against the petitioners and the co-accused. Challenge has also been thrown by the petitioners to the order passed by the learned trial Magistrate whereby cognizance of offences has been taken and the process has been issued against the petitioners.

3. It appears that the respondent Drug Control Officer, Anantnag, filed a complaint against the petitioners as also against their Directors and three more accused persons before the trial Magistrate. As per contents of the complaint, the respondent visited the premises of accused M/S Three Star Medical Agency on 09.01.2020 for inspection and lifted sample of drug “Tab Pantolid” manufactured by petitioner Mancare Laboratories Pvt. Ltd. The sample was divided into four equal portions and sealed by following the procedure prescribed under law. One portion of the sample was handed over to the proprietor of accused M/S Three Star Medical Agency against proper receipt, another portion of the sample was sent to the Government Analyst in terms of memorandum dated 09.01.2020. As per test report submitted by the Government Analyst, the sample was found not of standard quality as the same was not complying to IP requirement with respect to disintegration test. In this regard, the Government Analyst furnished his report dated 30.05.2020. A copy of the said report was furnished to proprietor of accused M/S Three Star Agency and it was directed to submit the procurement/purchase records as also the distribution pattern of drug in question. The available quantity of tablets of “Pantolid” was seized and kept in safe custody after obtaining permission from the Chief Judicial Magistrate, Anantnag.

4. It is further averred in the impugned complaint that as per the information furnished by accused M/S Star Medical Agency, the drug in question had been purchased from accused M/S J. S. Traders, Anantnag. Accordingly, the details were sought from M/S J. S. Trader with regard to the supplier of the drug. Vide communication dated 1st June, 2020, accused M/S J. S. Traders disclosed the name of M/S Rather Traders, Srinagar, accused No.4, as supplier of the drug. M/S Rather Traders, in turn, disclosed that it had purchased the said drug from petitioner M/S Nava Health Care Private Limited, New Delhi, vide invoice dated 03.04.2019. The original copy of the test report along with portion of drug sample was forwarded to the manufacturer petitioner M/S Mancare Laboratories Limited and information was sought from the said petitioner. Vide communication dated 02.06.2020, petitioner M/S Mancare Laboratories desired re-testing of the drug sample and to adduce evidence in controversion of the report of the Government Analyst.

5. In terms of the order of the Chief Judicial Magistrate, Anantnag, the sample of drug was sent to Director, Central Drugs Laboratory, Kolkata, for re-testing and vide report dated 23.09.2020, of the said Laboratory it was declared that the drug in question is not of a standard quality as the

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