Arbitrary cancellation of licenses under the Drugs and Cosmetics Rules, initiated based on retaliatory complaints, lacks legal validity.

CORAM: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA ORAL ORDER

4 02-12-2025 1. The petitioner has filed the present writ application for quashing the letter No. 28, dated 20.01.2022, issued by the Assistant Drug Controller, Darbhanga, whereby the Drug Licence Nos. DAR-M-47/2007 and DAR-M-

47A/2007, dated 30.06.2007, granted in favour of the petitioner, were cancelled under Rule 66 (1) of the Drugs and Cosmetics Rules , 1945, and for quashing the appellate order, dated 20.06.2022, passed, in Appeal Case No. 06 of 2022, by the Appellate Authority -cum- Additional Chief Secretary, Health Department, Government of Bihar, Patna, communicated vide letter no. 665 (15), dated 15.07.2022, whereby the appeal filed by the petitioner under Section 66 of the Rules has been rejected. The petitioner further prays to reinstate and restore the drug licenses.

2. The case of the petitioner, who is the proprietor of M/s Indira Memorial Nursing Home, Darbhanga, is that the Nursing Home also runs a medical store, for which the petitioner was granted Drug Licence Nos. DAR-M- 47/2007 and DAR-M-47A/2007, on 30.06.2007, under Rule 64 of the Drugs and Cosmetics Rules , 1945.

3. The license, granted in favour of the petitioner, was being regularly renewed from time to time and remained valid up to 29.06.2022. The routine inspections were also carried out by the Drugs Inspector, Darbhanga, and the inspection reports, dated 25.11.2013 and 13.12.2014, mention that the Nursing Home was functioning satisfactorily and no material irregularity was found.

4. On 19.09.2018, at about 11:30 A.M., an inspection was conducted by the Drugs Inspector, Shri Awadhesh Kumar Singh, during which the pharmacist, namely, Vijay Kumar Bhagat, was found absent. On the basis of the said inspection report, the Assistant Drug Controller suspended the license of the petitioner for a period of 15 days, vide letter no. 884, dated 22.10.2018.

5. It is the specific case of the petitioner that subsequent to the suspension of license of the petitioner, the Drugs Inspector, through his clerk, demanded illegal gratification of Rs. 80,000/- for revoking the suspension of license of the petitioner. Aggrieved by the action of the Drugs Inspector, the husband of the petitioner lodged a complaint before the Vigilance Department on 08.11.2018, leading to registration of Vigilance Police Station Case No. 51 of 2018 under Section 7 (a) of the Prevention of Corruption Act. A trap was laid and on 29.11.2018, the Drugs Inspector, Shri Awadhesh Kumar Singh, and his clerk, Rajendra, were caught red-handed while accepting illegal gratification of Rs. 60,000/- and Rs. 21,000/- respectively. Both were arrested and later on suspended.

6. After release from judicial custody, the said Drugs Inspector filed a complaint on 12.08.2019 before the State Drug Controller alleging that the petitioner had obtained the drug license in the year 2007 by using the name of Pharmacist, Vijay Kumar Bhagat, without his consent.

7. Acting on the said complaint, the Assistant Drug Controller issued Memo No. 58, dated 18.01.2020, to the pharmacist, directing him to appear within three days of receipt of the letter. In response, Shri Vijay Kumar Bhagat, vide letter, dated 11.02.2020, admitted that he had worked at the petitioner’s Nursing Home and could not appear personally due to illness.

8. Subsequently, another l