2024 Supreme(Mad) 1684
IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M.Subramaniam, C.Kumarappan, JJ.
M/s.Practo Technologies Pvt.Ltd. - Appellant
Versus
The Tamil Nadu Chemists and Druggists Association, Represented by its General Secretary and ors. – Respondents
W.A.Nos.2807 to 2810, 2814 & 2818 of 2018 and C.M.P.Nos.23341, 23345, 23346, 23350, 23369 & 23435 of 2018
Decided On : 25-06-2024
Advocate Appeared:
For the Appellant : Mr.Arjun Suresh
For the Respondent:Mr.S.K.Chandrakumar, Mr.N.Ramesh, Mr.K.Tippu sulthan, Government Advocate, Mr.Vijay Narayan, Senior Counsel, for Mr.A.Ramesh Kumar, Mr.Satish Parasaran, Senior Counsel for Mr.Edward James, Mr.Thriyambak Kannan, Mr.M.S.Krishnan, Senior Counsel, for Mr.Ankur Khandelwal, for M/s Kochhar and Co., Mr.Naveenkumar Murthi for Ms.S.Varsha
IMPORTANT POINT
The court established that timely regulation of online drug sales is essential for public safety, mandating that only licensed entities engage in such sales.
Headnote:
Regulation - Online Drug Sale - Drugs and Cosmetics Act, 1940; Pharmacy Act, 1948; Pharmacy Practice Regulations, 2015; Indian Medical Act, 1956; Code of Ethics Regulations, 2002; Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954 - The court emphasized the need for timely notification of rules governing online drug sales to ensure public safety and compliance by licensed traders.
Fact of the Case:
The case involves a challenge to a writ court order directing the Central Government to expedite the notification of rules for online drug sales, highlighting concerns over unregulated online pharmacies and public health risks.
Finding of the Court:
The court found that the delay in finalizing the policy for online drug sales could lead to health hazards, emphasizing the need for regulation and the importance of licensed traders in the online sale of drugs.
Issues: Whether the Central Government should expedite the notification of rules for online drug sales and the implications of unregulated online pharmacies on public health.
Ratio Decidendi: The court held that the Government must finalize and notify the policy for online drug sales promptly to protect public health, while ensuring that only licensed traders are permitted to sell drugs online.
Result: The court directed the Central Government to expedite the policy formulation for online drug sales and maintain the status quo until the policy is finalized.
JUDGMENT :
S.M.SUBRAMANIAM, J.
Prayer:Writ Appeal filed under Clause 15 of Letters Patent to set aside the order passed in W.P.No. 28716 of 2018 dated 17.12.2018.
The present intra-court appeals on hand have been instituted challenging the order dated 17.12.2018 passed in W.P.No.28176 of 2018.
2. The writ court found it becomes necessary for Central Government to notify the Rules at the earliest in the interest of the public and the online drug trade. Direction was issued to the Union of India, Department of Health and Family Welfare and Central Drug Standard, Control Organization, Directorate General of Health Services to notify the proposed Drugs and Cosmetics Amendment Rules, 2018 in the Gazette at the earliest. Thereafter, the stakeholders namely, persons doing trade in online pharmacy have to obtain respective licenses in the manner prescribed in the Rules to be notified. The draft rules framed by the Central Government is yet to be notified. Thus, the online traders are bound to not proceed with their business in online pharmacy. Since online trading of Drugs and Cosmetics was prohibited by the writ court, the present writ appeals came to be instituted.
3. Mr.N.Ramesh, the learned Central Government Standing Counsel would submit that the process of finalising the draft rules are in progress. The Government of India has taken a decision to frame new comprehensive policy covering all the issues raised between the traders and the public at large keeping the interest of public in mind. Since, the issues involved between the parties are complex in nature, it took some time for the Government of India to finalise the new policy proposed.
4. The respective learned Counsels appearing on behalf of the contesting respondents would state that no action has been taken by the Government of India for the past 8 years. Online sale of drugs are causing concern to the public at large and many unlicensed Druggists are selling drugs online in an unregulated manner, which is unsafe and may result in health hazards. There is no mechanism to regulate their trade. Therefore, long delay would result in health issues among the public at large.
5. Mr.Satish Parasaran, Mr.M.S.Krishnan and Mr.Vijay Narayan the respective learned Senior Counsels appearing on behalf of the appellants/Companies would submit that drugs through online mode are being sold only by the licensed Druggists and Chemists. Unlicensed Druggists and Chemists are not permitted to sell drugs through online. In other words, the drugs and cosmetics are routed through the licensed traders and in the event of any complaint, actions have to be initiated against the individual offenders by the competent Authority in the manner known to law. It is made clear that drugs and cosmetics sold online must be routed through licensed Druggists and Chemists and in the event of information or complaint regarding violations, actions are to be initiated.
6. Mr.N.Ramesh, learned Standing Counsel would submit that the High Court of Delhi vide its order dated 04.03.2024 passed in the matter of CM APPL.No.13527 of 2024 in W.P.(C) No.11711 of 2018 has stated that in pursuance to the last order dated 16.11.2023, the Joint Secretary, Ministry of Health and Family Welfare is personally present and prayed for four months further time for framing the policy for online sale of drugs as per the draft notification dated 28.08.2018.
7. Pursuant to the submission before the Delhi High Court by the Department of Health and Family Welfare, Union of India, the Delhi High Court passed the following order:
"CM APPL.13527 of 2024 in W.P.(C) 11711 of 2018
5. In pursuance to the last order, the Joint Secretary, Ministry of Health and Family Welfare is personally present. He prays for four months further time for framing the policy for online sale of drugs as per the draft notification dated 28th August, 2018. In support of his prayer, he refers to para 8' of CM APPL.13527/2024, which reads as under:-
"8. It is therefore respectfully s