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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 40(3) of the Act
  • Section 12(c), Section 12(d) and Section 13(b) of the Bombay Prohibition Act
  • Section 75 of the U.P Excise Act
  • U.P Excise Act, 1910
  • Section 41, Article 32 of the Constitution, Bombay Prohibition Act (25 of 1949)
  • The National Prohibition Act or the Volstead Act of America
  • Section 4(1) of the said Act
  • Article 47 of the Constitution
  • Section 41 under the U.P Excise Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 40(3) of the Act
  • Section 12(c), Section 12(d) and Section 13(b) of the Bombay Prohibition Act
  • Section 75 of the U.P Excise Act
  • U.P Excise Act, 1910
  • Section 41, Article 32 of the Constitution, Bombay Prohibition Act (25 of 1949)
  • The National Prohibition Act or the Volstead Act of America
  • Section 4(1) of the said Act
  • Article 47 of the Constitution
  • Section 41 under the U.P Excise Act
Smart Summary

Factual and Procedural Background

The appellants manufacture and distribute Ayurvedic preparations, including “Mirta Sanjiwani Sura,” in the State of Uttar Pradesh. On 14 September 1978 the State Government:

  • Issued a notification under Section 75 of the U.P. Excise Act, 1910 withdrawing the earlier exemption that had kept such preparations outside the Act’s purview.
  • Declared, through a notification under Section 4(1), that the preparations constitute “liquor” for purposes of transport, possession and sale.
  • Framed the U.P. Transport and Possession of Notified Restricted Spirituous Preparations (Prevention of Misuse) Rules, 1978 under Section 40(3).
  • Through the Excise Commissioner, fixed limits on possession and issued additional rules under Section 41 to regulate sales.

The appellants challenged these measures by writ petition in the Allahabad High Court, which dismissed the petition. They then filed the present appeal before the Supreme Court, accompanied by a connected Article 32 petition filed by other dealers seeking identical relief.

Legal Issues Presented

  1. Whether the State Government possesses statutory authority under the U.P. Excise Act, 1910 to regulate, restrict, or prohibit the transport, possession and consumption of Ayurvedic medicinal preparations containing alcohol.
  2. Whether the impugned notifications violate constitutional protections in light of the Supreme Court’s earlier ruling in State of Bombay v. F.N. Balsara, AIR 1951 SC 318.

Arguments of the Parties

Appellants' Arguments

  • The questions at hand are “completely covered” by the five-judge decision in Balsara, which struck down similar restrictions on medicinal and toilet preparations containing alcohol.
  • By analogy to Balsara, the present notifications are unconstitutional to the extent that they curtail the legitimate manufacture, distribution and use of such medicinal preparations.

The opinion does not contain a detailed account of the State’s arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of Bombay v. F.N. Balsara, AIR 1951 SC 318; 1951 SCR 682 Held that prohibitory laws imposing restrictions on medicinal and toilet preparations containing alcohol were not “reasonable” and therefore invalid insofar as they impeded legitimate possession, sale or consumption. The present Bench questions the correctness of Balsara, stating that Article 47 does not compel exclusion of medicinal preparations from prohibition. Finding the earlier reasoning unsatisfactory, the Bench refers the matter to a larger Constitution Bench for reconsideration.

Court's Reasoning and Analysis

Justice K. Jagannatha Shetty notes that Balsara proceeded on two assumptions: (1) the legislature may only deal with “perverted addicts,” not legitimate users, and (2) Article 47 of the Constitution mandates exclusion of medicinal preparations from prohibition. The court disagrees on both counts:

  1. Preventive power of the State. Waiting to act until abuse occurs is inconsistent with the State’s obligation to protect public health. Regulation is permissible to prevent potential misuse of high-alcohol medicinal preparations.
  2. Interpretation of Article 47. The Article’s phrase “except for medicinal purposes” is intended to allow the use of alcohol in preparing medicines, not to immunise finished medicinal products from all regulatory control. A contrary reading would undermine the Directive Principle urging prohibition of intoxicating beverages.
  3. Alcohol content. The preparations in question contain approximately 24 % alcohol, making them easily susceptible to abuse as ordinary liquor; thus, effective prohibition requires regulatory oversight under the Excise Act.

Because these conclusions conflict with the ratio of Balsara, the Bench determines that the matter warrants examination by a larger court.

Holding and Implications

ORDER: The matters are referred to a Constitution Bench for disposal.

Immediate effect: The Supreme Court does not decide the merits but escalates the case for authoritative resolution. Broader implication: The reference signals potential reconsideration of the long-standing precedent in Balsara, which could redefine the constitutional limits of State power to regulate medicinal preparations containing alcohol.

    M/S Dabur India Ltd. And Another v. State Of U.P And Others

    K. Jagannatha Shetty, J.— The questions raised in these matters relate to the power of the State Government to regulate the transport, possession and consumption of Mirta Sanjiwani Sura and other like Ayurvedic preparations under the U.P Excise Act, 1910. Appellant 1 is the manufacturer of Ayurvedic preparations and Appellant 2 is the wholesale dealer of such preparations. The latter is carrying on his business in Almora, one of the districts of U.P where prohibition has been introduced by the State Government.

    2. On 14-9-1978, the State Government issued a notification under Section 75 of the U.P Excise Act removing exemption of U.P Excise Act to its applicability to Mirta Sanjiwani Sura and other preparations. On the same day, another notification was issued under Section 4(1) of the said Act declaring Mirta Sanjiwani Sura and other preparations to be “liquor” for the purposes of transport, possession and sale within the meaning of the said Act. Again a third notification was issued under Section 40(3) of the Act publishing the rules called the U.P Transport and Possession of Notified Restricted Spirituous Preparations (Prevention of Misuse) Rules, 1978. The Excise Commissioner, U.P in exercise of the powers under Section 41 issued a notification dated 14-9-1978 making the rules regulating the sale of the medicinal or toilet preparations containing alcohol which is capable of being misused as ordinary alcoholic beverages. The Excise Commissioner also issued a notification fixing the limit of possession of Mirta Sanjiwani Sura for consumption.

    3. The validity of these notifications has been challenged by the petitioners in the writ petition before the High Court of Allahabad. The High Court has dismissed the writ petition. The appeal has been preferred against the judgment of the High Court. The connected writ petition under Article 32 of the Constitution has been filed by the dealers of the Ayurvedic medicines for the same relief.

    4. It has been urged among others, that the question raised in these matters is completely covered by a decision of the Supreme Court in State of Bombay v. F.N Balsara AIR 1951 SC 318, 1951 SCR 682. This decision was by a Bench of five judges. In that case certain provisions of the Bombay Prohibition Act (25 of 1949) and in particular Sections 12(c), 12(d) and 13(b) came up for consideration along with the restrictions imposed by certain notifications issued under the Bombay Prohibition Act in regard to sale, possession, consumption or use of medicinal and toilet preparations containing alcohol. This Court after examining the scope and effect of the enactment observed: (Per Fazal Ali, J.)

    “I consider that the Act is not a law imposing reasonable restrictions so far as medicinal and toilet preparations containing alcohol are concerned. The National Prohibition Act or the Volstead Act of America, to which I have referred, was also an Act relating to prohibition; but toilet and medicinal preparations containing alcohol were expressly excluded from the scope of that Act. I refer to that Act simply to show that a complete scheme of prohibition can be worked without including such articles among those prohibited. Again, Article 47 of the Constitution also takes note of the fact that medicinal preparations should be excluded in the enforcement of prohibition. I do not consider that it is reasonable that the possession, sale, purchase, consumption or use of medicinal and toilet preparations should be prohibited merely because there is a mere possibility of their being misused by some perverted addicts.”
    This Court was of the view that the restrictions sought to be imposed by the enactment were not reasonable. So stating this Court declared the provisions of Section 12(c), 12(d) and 13(b) and other provisions to be invalid so far as they affect the possession, selling or buying or consumption or use of medicinal and toilet preparations containing alcohol.

    5. The decision in Balsara case AIR 1951 SC 318, 1951 SCR 682 proceeds on the basis that it would be open to the legislature to provide against the abuse of the medicinal preparations in the interest of the general public, but not open to it to regulate the legitimate use. The judgment also proceeds on the basis that Article 47 of the Constitution takes note of the fact that medicinal preparations should be excluded in the enforcement of prohibition.

    6. With respect, we are unable to subscribe to this view taken in Balsara case AIR 1951 SC 318, 1951 SCR 682. We do not think that the State should wait till a person misuses the medicinal preparations containing alcohol for his intoxication. We do not think that the State could deal only with the perverted addicts and not preventing persons from becoming addicts by the misuse of medicinal preparations containing alcohol as ordinary alcoholic beverages. Article 47 of the Constitution provides as follows:

    “47. The State shall regard the raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties and, in particular, the State shall endeavour to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health.”
    Article 47, in our opinion, does not indicate that medicinal preparations containing alcohol should be excluded in the enforcement of prohibition, even though the medicinal preparations contain high percentage of alcohol. Article 47 uses the words “prohibition of the consumption except for medicinal purposes”. It seems to suggest that the user of liquor for making medicinal preparations only, even otherwise, the expression “medicinal purposes” contained in that article has to be construed in the light of the directive principles of State policy of bringing about prohibition of intoxicating drinks and of drugs which are injurious to health. The medicinal preparations with which we are concerned contain about 24 per cent of alcohol. Anybody can consume it as a liquor for being intoxicated. For the effectiveness of prohibition, the State, in our opinion, must be held to have the power to regulate the possession or consumption of such medicinal preparations containing comparatively high percentage of alcohol under the Excise Act. A construction to the contrary would defeat the very object of the prohibition and at any rate, not warranted by Article 47 of the Constitution.

    7. We, therefore, refer these cases to a Constitution Bench for disposal. Let the papers be placed before the Hon'ble Chief Justice for necessary orders.

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    M/S Dabur India Ltd. And Another v. State Of U.P And Others
    (Dec 9, 1987)