Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Neutral Citations
008 INSC 1235
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 18(c) of the Act
  • Section 21 of the Act
  • the Act concerned (under which a criminal proceeding is instituted)
  • Section 482 of the Code of Criminal Procedure, 1973
  • Section 156(1) of the Code
  • Section 3(b) of the Drugs and Cosmetics Act, 1940
  • Article 226
  • Section 33-G of the Act
  • Section 155(2) of the Code
  • Code under Chapter XIV
  • Section 33-M of the Act
  • Section 18(c) read with Section 27(b)(ii) of the Drugs and Cosmetics Act, 1940
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Neutral Citations
008 INSC 1235
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 18(c) of the Act
  • Section 21 of the Act
  • the Act concerned (under which a criminal proceeding is instituted)
  • Section 482 of the Code of Criminal Procedure, 1973
  • Section 156(1) of the Code
  • Section 3(b) of the Drugs and Cosmetics Act, 1940
  • Article 226
  • Section 33-G of the Act
  • Section 155(2) of the Code
  • Code under Chapter XIV
  • Section 33-M of the Act
  • Section 18(c) read with Section 27(b)(ii) of the Drugs and Cosmetics Act, 1940
Smart Summary

Factual and Procedural Background

A Drug Inspector filed a complaint (C.C. No. 917 of 2004) before the Chief Judicial Magistrate, Ernakulam, alleging that three accused were manufacturing, storing and selling “DXN Ganocelium (GL)” and “DXN Rishi (RG)” capsules—considered “drugs” under Section 3(b) of the Drugs and Cosmetics Act, 1940—without the licence required by Section 18(c). Accused Nos. 1 and 3 moved the High Court of Kerala under Section 482 of the Code of Criminal Procedure, 1973, contending that the capsules were ayurvedic proprietary medicines, not allopathic drugs, and that prosecution lacked the mandatory sanction. A learned Single Judge accepted those contentions and quashed the criminal proceedings. The present appeal before the Supreme Court challenges that quashing order.

Legal Issues Presented

  1. Whether the High Court was justified in invoking its inherent power under Section 482 CrPC to quash the complaint at the threshold.
  2. Whether the capsules in question are ayurvedic proprietary medicines (governed by Chapter IV-A of the Act) or allopathic drugs (governed by Chapter IV), and, consequently, whether a licence under Section 18(c) was mandatory.

Arguments of the Parties

Appellant's Arguments

  • Determination of whether the seized goods are ayurvedic or allopathic is a matter of evidence that must be decided during trial, not at the pre-trial stage.
  • Respondents admittedly had no manufacturing licence on the date of seizure; subsequent grant of licence is irrelevant to the alleged offence.
  • The Drug Inspector who seized the products and lodged the complaint was duly authorised, as evidenced by the transfer order dated 3-5-2000 and Notification dated 19-11-2001.
  • None of the recognised categories justifying threshold interference under Section 482 CrPC (as enumerated in State of Haryana v. Bhajan Lal) are attracted.

Respondents' Arguments

  • The seized capsules are ayurvedic proprietary medicines that fall under Chapter IV-A; accordingly, sanction under Section 33-M was required but not obtained.
  • The Drug Inspector is not shown to be a “public servant” within the meaning of Section 21 of the IPC; the documents produced (notification and transfer order) are insufficient.
  • The complaint was filed nearly two years after seizure, and a licence was obtained the very next day after seizure; continuing prosecution for a technical breach serves no purpose.
  • The court issuing process failed to consider pre-summoning evidence and did not record that the complainant was acting in his public-servant capacity.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of Haryana v. Bhajan Lal, 1992 Supp (1) SCC 335 Enumerates illustrative categories where courts may quash criminal proceedings under Section 482 CrPC. The Court reviewed the seven Bhajan Lal categories and concluded that the present case fits none of them, hence threshold quashing was improper.

Court's Reasoning and Analysis

The Supreme Court emphasized that the core dispute—whether the capsules are ayurvedic or allopathic—requires evidence and is therefore a triable issue. Section 18(c) unequivocally prohibits manufacture, sale or stocking of any drug without an appropriate licence. The respondents admittedly lacked such a licence on the date of seizure; filing an application or obtaining a subsequent licence does not cure the offence. Invoking Bhajan Lal, the Court examined whether the complaint was amenable to quashing under any recognised category and found none applicable. Consequently, the High Court’s exercise of inherent jurisdiction amounted to premature evaluation of disputed facts, contrary to settled principles.

Holding and Implications

Appeal Allowed; quashing order set aside. The criminal proceedings in C.C. No. 917 of 2004 are restored for trial before the Chief Judicial Magistrate, Ernakulam. The Court expressly refrained from commenting on the merits of the case.

Implications: The decision reinforces the limited scope of Section 482 CrPC, underscoring that factual determinations—such as classification of a product as ayurvedic or allopathic—must ordinarily be made at trial. No new legal precedent was established, but the ruling reiterates adherence to the Bhajan Lal framework.

To access the original judgment, please Sign In or Subscribe.

    State Of Kerala v. Orison J. Francis And Another

    Dr. Arijit Pasayat, J.— Leave granted.

    2. Challenge in this appeal is to the judgment of a learned Single Judge quashing the proceedings in CC No. 917 of 2004 in the Court of the Chief Judicial Magistrate, Ernakulam.

    3. Background facts in a nutshell are as follows:

    A complaint was filed alleging commission of offences punishable under Section 18(c) read with Section 27(b)(ii) of the Drugs and Cosmetics Act, 1940 (in short “the Act”). Allegation was that the three accused persons were manufacturing and selling and storing DXN Ganocelium (GL) and DXN Rishi and (RG) capsules, which are drugs within the definition of Section 3(b) of the Act, without a manufacturing licence. In the complaint M/s Deshsan Trading (India) Pvt. Ltd. represented by Abdul Rahmath Puvarasar Abdulla, Director and Abdul Rahmath Pavarsan Abdulla and Orison J. Francis, Branch Manager were arrayed as accused persons, Nos. 1 to 3.

    4. A petition under Section 482 of the Code of Criminal Procedure, 1973 (in short “the Code”) was filed by Accused 1 and 3 who are Respondents 1 and 2 in the present appeal. Basic stand before the High Court was that the alleged drugs seized belonged to “ayurvedic” category which is dealt with under Section 3(a) whereas the “allopathic drugs” are defined under Section 3(b). Separate chapter i.e Chapter IV-A deals with ayurvedic drugs, etc. while Chapter IV deals with “allopathic drugs”.

    5. The charge is that the appellants violated Section 18(c) of Chapter IV i.e with respect to allopathic drugs. According to the accused the article sold was food supplement and at best is only an ayurvedic proprietary drug. The Drug Department of the State of Tamil Nadu has issued drug licence under Chapter IV-A as an ayurvedic drug and thereafter licence was issued by the Food and Drug Administration, Pondicherry. Hence, sanction under Section 33-M of the Act ought to have been obtained to launch prosecution, which is lacking.

    6. It is also not established that the person who launched the complaint is a public servant under Section 21 of the Act. According to them, gazette notification and the letter of appointment of the complainant Drug Inspector are insufficient to satisfy Section 21 or Section 33-G. What has been produced is only a transfer order. It was further contended that the court has not considered the pre-summoning evidence in the matter. Nowhere it is mentioned in the complaint that the same has been filed by the complainant in his capacity as public servant and the examination of the complainant can be dispensed with.

    7. Stand of the present appellant before the High Court was that whether the goods seized were ayurvedic drugs can only be decided in the trial and the threshold interference by the High Court is not called for. Additionally, it was submitted that the undisputed position being that the respondents did not possess a licence, the High Court could not have interfered. The mere fact that the licence was granted subsequently is of no consequence. It was pointed out that the Inspector who made the seizure and filed the complaint was authorised to do so. In this connection, reference is made to the order dated 3-5-2000 transferring the Drug Inspector concerned from the Drugs Control Society, Trivendrum to be posted as Drug Inspector in the office of the Assistant Drugs Controller. Reference is also made to the Notification dated 19-11-2001 relating to the power of inspection of Inspectors. It is stated that the explanatory note has no application because only when the drug is shown to be ayurvedic drug, the explanatory note shall have relevance.

    8. Learned counsel for the respondents, on the other hand, submitted that the seized drugs are nothing but ayurvedic drugs. The complaint itself was filed after two years on 2-12-2003, though the seizure was made much earlier. It is also submitted that the licence was subsequently granted after a long lapse of about two years. Same is a factor which has weighed with the High Court and for a technical breach the proceedings should not continue. The drugs were seized on 12-12-2001 and on the next day itself the respondent had obtained the licence.

    9. Whether the goods in question are ayurvedic drugs is essentially a matter for trial. Section 18(c) of the Act reads as follows:

    “18. Prohibition of manufacture and sale of certain drugs and cosmetics.—From such date as may be fixed by the State Government by notification in the Official Gazette in this behalf, no person shall himself or by any other person on his behalf—
    (a)-(b)***
    (c) manufacture for sale or for distribution, or sell, or stock or exhibit or offer for sale, or distribute any drug or cosmetic, except under, and in accordance with the conditions of a licence issued for such purpose under this Chapter:”

    10. Obviously, a licence was required for dealing with the drugs. The mere fact that the application for licence was filed, did not entitle the respondent to manufacture and/or to sell the drugs concerned. The High Court, therefore, was not justified in quashing the proceedings. This is not a case where threshold interference by exercising power under Section 482 of the Code was called for.

    11. The scope for interference at the threshold by exercising power under Section 482 of the Code has been succinctly stated by this Court in State of Haryana v. Bhajan Lal 1992 Supp (1) SCC 335. In para 102 it was stated as follows:

    “102. … In the backdrop of the interpretation of the various relevant provisions of the Code under Chapter XIV and of the principles of law enunciated by this Court in a series of decisions relating to the exercise of the extraordinary power under Article 226 or the inherent powers under Section 482 of the Code which we have extracted and reproduced above, we give the following categories of cases by way of illustration wherein such power could be exercised either to prevent abuse of the process of any court or otherwise to secure the ends of justice, though it may not be possible to lay down any precise, clearly defined and sufficiently channelised and inflexible guidelines or rigid formulae and to give an exhaustive list of myriad kinds of cases wherein such power should be exercised.
    (1) Where the allegations made in the first information report or the complaint, even if they are taken at their face value and accepted in their entirety do not prima facie constitute any offence or make out a case against the accused.
    (2) Where the allegations in the first information report and other materials, if any, accompanying the FIR do not disclose a cognizable offence, justifying an investigation by police officers under Section 156(1) of the Code except under an order of a Magistrate within the purview of Section 155(2) of the Code.
    (3) Where the uncontroverted allegations made in the FIR or complaint and the evidence collected in support of the same do not disclose the commission of any offence and make out a case against the accused.
    (4) Where, the allegations in the FIR do not constitute a cognizable offence but constitute only a non-cognizable offence, no investigation is permitted by a police officer without an order of a Magistrate as contemplated under Section 155(2) of the Code.
    (5) Where the allegations made in the FIR or complaint are so absurd and inherently improbable on the basis of which no prudent person can ever reach a just conclusion that there is sufficient ground for proceeding against the accused.
    (6) Where there is an express legal bar engrafted in any of the provisions of the Code or the Act concerned (under which a criminal proceeding is instituted) to the institution and continuance of the proceedings and/or where there is a specific provision in the Code or the Act concerned, providing efficacious redress for the grievance of the aggrieved party.
    (7) Where a criminal proceeding is manifestly attended with mala fide and/or where the proceeding is maliciously instituted with an ulterior motive for wreaking vengeance on the accused and with a view to spite him due to private and personal grudge.”

    12. The present case does not belong to any of the aforesaid categories.

    13. The appeal is accordingly allowed. We make it clear that we have not expressed any opinion on the merits of the case.

    Use AI to get other relevant cases.

    Comments

    State Of Kerala v. Orison J. Francis And Another
    (Nov 4, 2008)