Supreme Court decline to Quashes Criminal Proceedings Against Appellant for Alleged Violations Under Drugs and Cosmetics Act, 1940

  • 30
Judgement Image
Font size:
Print

Case Note & Summary

The Supreme Court quashed criminal proceedings against Appellant and its officials for alleged violations under the Drugs and Cosmetics Act, 1940, related to record-keeping. The Appellants challenged the High Court's order dismissing their petition to quash the complaint. The prosecution sanction only cited record-keeping issues under Schedule-M and Schedule-U, without claims of drug quality violations. The court declined to quash the proceedings

Headnote

Criminal Law-- Code of criminal Procedure, 1973- Sections 482 and 468 -- Drugs and cosmetics Act, 1940-- Sections 27(d),18(a)(vi) and 28-A-- Rules- Rule 74, 22(1)(cca) and 18-B-- Inspection of firm of appellant-- Non maintenance of requisite record-- Inadeuate details regarding the entry of drug received-- Inspection report-- Tamper with record-- Contravention of section 18(a)(vi) and 18-B of Act-- Sanction for prosecution-- Criminal complaint-- Ld. Magistrate took cognizance-- Summons issued to appellant-- Contention raised to time bar cognizance taken, raised by appellant in view of provision of punishment-- Petition for quashing of proceedings filed before high court-- Dismissal of petition-- Aggrieved-- Challenged-- Contention of the appellant that the complaint filed after a period of two and a half years where as limitation is maximum period of one year as per section 468 of CRPC-- Provision of punishment of imprisonment for a term not less than one year but may extend to two years as per section 27(d) of Act, 1940-- As per Section 468 of CRPC complaint can be filed within a period of 3 years - Complaint in question filed within time limit-- Justification in dismissal of petition u/s 482 of CRPC by high court-- Appeal Dismissed

Para-- 27, 28, 33

Issue of Consideration: The Issue of Consideration was whether the criminal proceedings against the Appellants for alleged contraventions under the Drugs and Cosmetics Act, 1940, should be quashed due to procedural irregularities, lack of substantive offence, and violations of statutory provisions

Final Decision

The Supreme Court allowed the Appeal, quashed the criminal proceedings against the Appellants, and set aside the High Court's order

2026 LawText (SC) (02) 48

Criminal Appeal No. _____ of 2026 (@ Special Leave Petition (Criminal) No. 9281 of 2025)

2026-02-20

PRASHANT KUMAR MISHRA J. , VIPUL M. PANCHOLI J.

2026 INSC 171

M/s SBS Biotech, Shri Sanjeev Kumar Santoshi, Mr. Avinash Banga

State of Himachal Pradesh

Nature of Litigation: Criminal appeal challenging the High Court's order dismissing a petition to quash criminal proceedings under the Drugs and Cosmetics Act, 1940

Remedy Sought

The Appellants sought quashing of Complaint No. 36/3 of 2017 (renumbered as Complaint No. 9 of 19.12.2017) and related proceedings

Filing Reason

Alleged contraventions of Sections 18(a)(vi), 18-B, and related provisions for record-keeping violations during drug manufacturing

Previous Decisions

High Court of Himachal Pradesh dismissed the petition to quash the complaint via judgment dated 29.07.2024 in Cr. MMO No. 167 of 2018; Judicial Magistrate First Class, Nahan, took cognizance and summoned Appellants on 06.04.2017

Issues

Whether the criminal proceedings should be quashed due to procedural irregularities under the Drugs and Cosmetics Act, 1940 Whether the allegations constitute a substantive offence warranting prosecution under the Act

Submissions/Arguments

Appellants argued non-compliance with Section 23(6) regarding production of seized records, delay in prosecution, and lack of substantive offence allegations Respondent asserted violations of record-keeping requirements under Schedule-M and Schedule-U, justifying prosecution

Ratio Decidendi

The Court held that procedural irregularities, including violation of Section 23(6) and delay, coupled with the absence of allegations regarding drug quality (substandard, misbranded, etc.), rendered the prosecution an abuse of process. The offences pertained only to record-keeping, not substantive violations under the Act.

Judgment Excerpts

The Appellants sought the quashing of Complaint No. 36/3 of 2017 The prosecution sanction nowhere averred that the manufactured drugs were substandard, misbranded, adulterated, or spurious The Appellants asserted that the seized records were never produced, constituting a blatant violation of Section 23(6) of the Act

Procedural History

Inspection on 22.07.2014 -- Spot Inspection Report and directions issued -- Re-inspection on 05.08.2014 with seizure of drug and documents -- Application for custody orders on 06.08.2014 -- Delay in informing State Drug Controller until 02.07.2015 -- Show Cause Notice dated 29.07.2015 -- Reply submitted on 03.10.2015 -- Prosecution Sanction granted on 15.09.2016 -- Complaint filed on 27.02.2017 -- Cognizance taken and summons issued on 06.04.2017 -- High Court dismissed quashing petition on 29.07.2024 -- Supreme Court appeal filed

Related Judgement
Supreme Court Supreme Court decline to Quashes Criminal Proceedings Against Appellant for Alle...
Related Judgement
High Court Scope of Amendment under Section 152 of the Code of Civil Procedure, 1908 – Hi...