PUNJAB & HARYANA HIGH COURT
Jawahar Lal Gupta, J.
Franklin Laboratories (India) Private Limited Pharmaceuticals manufacturers
Versus
Drugs Controller (India) Showing His Office At Director General Of Health Services, New Delhi
Civil Writ Petition No. 7749 of 1991,
Decided On : APRIL 2, 1992
DRUGS AND COSMETICS ACT - SECTION 26-A - BAN ON MANUFACTURE AND SALE OF FIXED DOSE COMBINATION DRUGS - VALIDITY - NOTIFICATION ISSUED BY CENTRAL GOVERNMENT - CHALLENGE - GROUNDS - VIOLATION OF PRINCIPLES OF NATURAL JUSTICE - ARBITRARINESS - SCOPE OF JUDICIAL REVIEW.
Fact of the Case:
The petitioners, manufacturers of fixed dose combination drugs, challenged the validity of a notification issued by the Central Government banning the manufacture and sale of various fixed dose combinations of drugs. They contended that the notification was arbitrary, violative of the principles of natural justice, and beyond the scope of Section 26-A of the Drugs and Cosmetics Act, 1940.
Finding of the Court:
The court held that the notification was valid and did not suffer from any of the alleged infirmities. It found that the Government had acted within the scope of its powers under Section 26-A of the Act and that the procedure followed was in accordance with the law. The court also held that the petitioners had been given a reasonable opportunity to represent their views before the Sub-Committee of the Drugs Consultative Committee, which had recommended the ban.
Issues: 1. Whether the notification banning the manufacture and sale of fixed dose combination drugs was arbitrary and violative of the principles of natural justice? 2. Whether the action was beyond the scope of Section 26-A of the Drugs and Cosmetics Act, 1940? 3. Whether the petitioners had been given a reasonable opportunity to represent their views before the Sub-Committee of the Drugs Consultative Committee?
Ratio Decidendi: 1. The court held that the notification was not arbitrary or violative of the principles of natural justice. It found that the Government had acted on the basis of the recommendations of the Drugs Consultative Committee, which had conducted a thorough examination of the matter and had concluded that the fixed dose combination drugs in question did not have therapeutic value and were potentially harmful. 2. The court held that the action was within the scope of Section 26-A of the Drugs and Cosmetics Act, 1940. It found that the Government had formed an opinion that the use of the fixed dose combination drugs in question was likely to involve a risk to human beings and that it was in the public interest to ban their manufacture and sale. 3. The court held that the petitioners had been given a reasonable opportunity to represent their views before the Sub-Committee of the Drugs Consultative Committee. It found that the Government had published a notice inviting the industry to appear before the Sub-Committee and that the petitioners had availed of this opportunity.
Final Decision: The court dismissed the petitions challenging the validity of the notification.
1. This bunch of 17 petitions viz. C.W.Ps. Nos. 7749, 8393, 9409, 9418, 12222 to 12224, 12328, 12329, 12298, 12299, 13076, 13212, 13933, 14613, 18350 and 18887 of 1991 raise a challenge to the validity of the notification (s) issued by the Central Government banning the manufacture etc. of various fixed dose combinations of drugs. Learned counsel for the parties are agreed that these petitions can be disposed of by one common order. The facts as stated in C.W.P. No. 7749 of 1991 may be briefly noticed.
2. The petitioner herein is a Company engaged in production, sale and distribution of various drugs and pharmaceutical products. It is producing various sedative, anxiolytic, hypnotic, analgesic and antipyretic drugs in different combinations. It claims to have been granted the permission to manufacture various products included in Schedule X to the Act. It is claimed that these products are of great utility and therapeutic value to the patients. It is further claimed that the petitioner-Company has been licenced under the provisions of the Drugs and Cosmetics Act, 1940, (hereinafter referred to as the Act). It has been further mentioned that the Government of India had constituted a Drugs Consultative Committee which after thorough examination of the matter made its recommendations. The Central Government on examination of the proceedings of the Committee, issued a notification in the year 1983, by which the manufacture and sale of various drugs was banned. However, the medicines prepared by the petitioner were not mentioned in this notification.
3. On 26/12/1990, the Government has issued a notification by which the manufacture of fixed dose combination of various drugs has been banned. The validity of this notification has been challenged on the ground that it is wholly arbitrary and violative of the principles of natural justice.
4. A written statement has been filed on behalf of the Union of India and the Drugs Controller by the Deputy Drugs Controller (India). It has been mentioned that there were lots of representations from the consumers associations questioning the rationale and safety of fixed combination drugs. Consequently, Parliament had in its collective wisdom incorporated Sec. 26-A authorising the Central Government to identify such harmful drugs and to prohibit their manufacture, sale and distribution. The Drugs Consultative Committee constituted under the Act surveyed fixed combination drugs available in this country. According to the written statement definite guidelines, as envisaged in Sec. 26-A of the Act were laid down and after thorough screening, the Consultative committee published the list of various drugs periodically. Further a Sub-Committee of the Drugs Consultative Committee consisting of Experts in Pharmacology and medicine screened the fixed dose combination drug available in this country and identified such drugs as were considered irrational and harmful. It is on the basis of the recommendations of the Sub-Committee that the Central Government finally issued the impugned notification. Reasons have also been given in the written statement to show that a combination of various drugs like diazepam or phonobarbitone with analgesic or antipyretic drugs is not more advantageous than individual drug therapy. It has been further mentioned that there is a possibility of the drug being misused and administered in combination even in a condition when it is not actually required. On these promises, the impugned notification(s) are sought to be sustained.
5. I have heard learned counsel for the parties. The primary contention raised by the learned counsel is that the impugned notification vitally affects the interests of the small scale units, like the petitioners, and they had a right to be heard before their freedom of trade as guaranteed under Article 19 of the Constitution could be curtailed. It has also been contended that the action is beyond the provision of Sec. 26-A of the Act and suffers f
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