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2026 Supreme(Online)(Bom) 3709

HIGH COURT OF BOMBAY
N. J. Jamadar, J
C. B. Healthcare – Appellant
Versus
Union of India – Respondent
WRIT PETITION NO.2777 OF 2024



Advocates:
For the Appellants/Petitioners: Nitin Bhasin, Vishal N. Nevshe
For the Respondents: Anilkumar Singh, D. P. Singh, K. C. Shinde

Prosecution for sale of sub-standard products is unsustainable when procedural lapses, specifically excessive testing delays and failure to provide samples, result in the loss of the accused's valuable statutory right to independent re-analysis of the evidence.

Headnote:(A) Drugs and Cosmetics Act, 1940 - Sections 23, 25, 32 and 34 - Drugs Rules, 1945 - Rule 45 - Criminal Procedure Code, 1973 - Section 193 - Prosecution against manufacturer for sub-standard drugs - Inordinate delay in testing samples beyond mandated period and failure of regulatory authorities to deliver part of sample to manufacturer violates valuable right to re-testing - Prosecution is impermissible when the substance has lost its shelf life, rendering re-analysis impossible. (Paras 14, 15, 21, 38)

(B) Cognizance of offences - Trial court designated as special court - Cannot take cognizance directly unless case is committed by judicial magistrate - Special statute does not contain a non-obstante clause to bypass committal proceedings - Absence of such provision necessitates compliance with general procedural code for committal. (Paras 41, 42, 46)

(C) Vicarious liability - Must be specifically pleaded - Mere status as partner or director is insufficient to infer liability in daily business conduct - Requirement for specific allegations regarding responsibility for daily affairs of the firm. (Paras 48, 49, 50, 52)

Facts of the case:
A regulatory inspection of a manufacturing facility led to samples being drawn for analysis. A government report declared the samples to be not of standard quality. The manufacturer was not provided with one portion of the sample, and significant delays occurred in finalizing testing and filing the subsequent criminal complaint. By the time legal proceedings were initiated, the product had long passed its shelf life, depriving the accused of the statutory right to seek independent re-testing. Arguments were raised regarding procedural non-compliance, the authority of the court to take direct cognizance, and the sufficiency of allegations regarding vicarious liability.

Findings of Court:
The failure to comply with the mandated time frames for analysis and the failure to provide the manufacturer with a sample portion created an irreversible loss of a valuable defense right. The court held that the delay was predominantly attributable to the regulatory authority. Furthermore, the court emphasized that a specialized criminal court cannot take direct cognizance of an offence without a committal order, as the governing statute lacks specific enabling provisions to bypass the procedure laid down in the general procedural code.

Issues: Whether the delay in testing and non-compliance with sample distribution mandates vitiates prosecution; whether a trial court can take direct cognizance in the absence of a specific enabling provision; and whether bald allegations are sufficient to invoke vicarious liability.

Ratio Decidendi: A prosecution based on delayed test results, where the opportunity for re-analysis is lost owing to the product's expiration, constitutes an abuse of judicial process. Procedural safeguards designed to protect an accused's right to challenge laboratory findings must be strictly followed to prevent prejudiced outcomes.

Result: Petition allowed; proceedings quashed.

Table of Content
1. summary of facts regarding the alleged drug manufacturing offence. (Para 1 , 2 , 3)
2. parties' contentions regarding procedural defaults and jurisdictional limits. (Para 4 , 5 , 6 , 7)
3. identification of procedural requirements in the drugs act, 1940. (Para 8 , 9 , 10 , 11 , 12 , 13)
4. rule 45 requires testing within 60 days, mandating strictly reasoned delays. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
5. failure to provide sample portion violates the accused's right to retesting. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38)
6. special courts cannot directly take cognizance without committal by a magistrate. (Para 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46)
7. vicarious liability requires specific averments of daily oversight duties. (Para 47 , 48 , 49 , 50 , 51 , 52)
8. final order quashing prosecution due to procedural lapses and abuse of process. (Para 53 , 54)

JUDGMENT :

1. Rule. Rule made returnable forthwith, and, with the consent of the learned Counsel for the parties, heard finally.

2. By this Petition under Article 227 of the Constitution of India, the Petitioners seek to quash and set aside criminal prosecution initiated against the Petitioners in Special Case No.32 of 2021 before the Special Judge, Dadra and Nagar Haveli, Silvasa, for an offence punishable under Section 27(d) of the Drugs & Cosmetics Act, 1940 (the Drugs Act, 1940).

3. The background facts necessary for the determination of this Petition can be summerized as under :

3.1 The Petitioner No.1 is a Partnership firm. It is engaged in pharmaceutical manufacturing business. Petitioner Nos.2 to 5 are the partners of Petitioner No.1. The Petitioner No.1 manufactures drugs at Baddi, District Solan, Himachal Pradesh. The Petitioner No.1 was holding a valid licence to manufacture FEXINOL-12 – Fexofenadine Hydrochloride Tablets IP.

3.2 Respondent-complainant is a Drugs Inspector appointed under the Drugs Act, 1940. Respondent claimed that, on 29 November 2016, he had visited and inspected the premises of Vinoba Bhave Civil Hospital’s Central Medical Store at Silvasa, and, drawn a sample of FEXINOL-12, Batch No.CBT-400/16, manufactured by the Petitioner No.1. The said sample was purportedly drawn for the purpose of test and analysis by issuing Form No.17. On 30 November 2016, one portion of the sealed sample was allegedly sent by the Respondent to Government Analyst, Central Drugs Testing Laboratory, Mumbai, in Form No.18. The Respondent allegedly received a report in Form No.13 dated 6 July 2017 from the Government Analyst, opining that the sample was ‘not of standard quality’.

3.3 Thereupon, Respondent issued a show cause notice along with one sealed portion of the sample, to the Central Medical Store, Civil Hospital, Silvasa, directing the store to stop usage / distribution and to disclose the name / address of the firm/ person from whom the said drug was obtained.

3.4 Eventually, the distribution chain of the subject drug was traced back to Petitioner No.1. A joint investigation was carried out by the Deputy Drugs Controller (I), CDSCO, Baddi Zone, alongwith State FDI Officials. A joint investigation report dated 4 September 2017 was prepared. Thereafter, on 6 November 2019 sanction to initiate prosecution against the Petitioners was obtained from the Drugs Controller General of India.

3.5 Armed with the said sanction, the Respondent filed a complaint before the Special Judge at Silvasa on 28 September 2021. By an order dated 28 September 2021, the learned Special Judge, Dadra and Nagar Haveli, Silvasa, was persuaded to issue process against the Petitioners for an offence punishable under Section 27(d) of the Drugs Act, 1940.

4. The Petitioners have assailed the prosecution by raising a slew of exceptions. Firstly, in clear violation of Rule 45 of the Drugs Rules, 1945, there was an inordinate and unexplained delay in testing the samples. Secondly, there was non-compliance of the mandate contained in S

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