Telangana High Court
Abbott Healthcare Pvt. Ltd. vs The State Of Telangana on 20 September, 2023
THE HONOURABLE SRI JUSTICE K.SURENDER
CRIMINAL PETITION No.5027 OF 2021
ORDER:
1. This Criminal Petition is filed by the petitioners/A6 & A7 to quash the proceedings in C.C.No.141 of 2018 on the file of Junior Civil Judge, Kamareddy.
2. The Drug Inspector, Kamareddy filed a complaint punishable under the provisions of Drugs and Cosmetics Act. The complaint arrays 16 persons as accused. The petitioners herein are A6 and A7.
3. The case of the Drug Inspector is that Phensedyl cough linctus syrup was smuggled across international borders of India into Bangladesh. The said consignment of cough syrup was manufactured by M/s.Abbott Healthcare Private Limited. It was known to the Drug Inspector that company's C & F agents and the company officials were responsible for smuggling out the drug in collusion with one another. The said cough syrup when consumed in excess causes intoxication and persons are addicted to consume such bottles. 2
4. An alert notice was sent by the Deputy Commissioner of Customs and Central Excise regarding smuggling of the cough syrup. When verified, it came to the knowledge of the officials that cough syrup was supplied from the State of Telangana. The premises of M/s.Ajanta Medical and General Stores at Kamareddy was inspected and it was found that the cough syrup was supplied to several wholesale dealers in Hyderabad. There was abnormal increase in sales and having gone through the purchase bills, invoices etc., and other investigation done, the complaint was filed.
5. It is alleged that A12 purchased demand drafts in favour of M/s.Abott Health Care Private Limited in the account of Mahaver Enterprises at A.P.Janata Co Operative Urban Bank and purchased cough syrup from M/s.Abott Healthcare Private Limited, Nacharam Depot. The company received demand drafts from Mr.Mangeelal and supplied the stocks to Mr.Mangeelal and raised invoices in the name of M/s.Ajanta Medical and General Stores. The allegations in the complaint are that drugs were sold to unlicenced dealers, cash receipts and sales bills etc., were not maintained properly and also the 3 documents were not furnished by petitioners to the drug inspector. The said acts amount to contravention of Section 18(c ) of the Drugs and Cosmetics Act r/w conditions of licenses 3(ii) of form 20B and 4(ii) of form 21B of the Drugs & Cosmetics Act 1940. Further, the contravention under Section 18(a)(vi) r/w rule 65(5)(1), 65(5)(2) and 65(6) of the Drugs and Cosmetics Act.
6. Learned Senior Counsel appearing for the petitioners would submit that the company had not violated any of the provisions of the Drugs and Cosmetics Act and the Rules made there under. The drug was sold to wholesalers, who were having licences. In turn, if the said drug was sold in any manner contravening the provisions under the Drugs and Cosmetics Act, the petitioners cannot be held liable since such operation is beyond the control of the company/petitioners. In fact, the company has not sold any drug to Mahaveer Enterprises as it is not the distributor or to Mangeelal, who was running the said firm. The company received orders from various distributors who are M/s.Satheesh Medical Agency, 4 M/s.Kalasagar Medical Agency, Karimnagar, Prasath Medical, Tirupati and Ajantha.
7. Several documents which are invoices and details of sales etc. were filed by the petitioners for the purpose of adjudication.
8. On the other hand, learned Public Prosecutor representing Drug Inspector would submit that the petitioners have accepted demand drafts from Mr.Mangeelal/A12 for the purchase of the cough syrup in the name of Mahaveer Enterprises. The payments were made through A.P.Janata Cooperative Urban Bank Limited. The statement of account of the said Bank is also filed. In the said statement of account, there are several transactions pertaining to M/s.Abott Healthcare Private Limited. The transactions are transfer transactions, DDs being taken in favour of the company.
9. The defence raised by the petitioners cannot be adjudicated in a proceeding under Section 482 of CrP.C. Prima facie, the Demand Drafts were drawn by A12 and amount transferred in favour of M/s.Abott Healthcare Private Limited. The defence of the petitioners that they have only sent cough 5 drug to licenced distributors and not to Mr.Mangeelal are all questions of fact. The allegation is one of conspiracy and the correctness or otherwise of the allegations cannot be decided in a 482 petition. All the documents produced in support of defence are subject to proof and can only be considered after the said documents are exhibited during trial. There are no grounds to interfere with the prosecution.
10. Accordingly, the Criminal Petition is dismissed. Consequently, miscellaneous applications pending, if any, shall stand dismissed.
__________________ K.SURENDER, J Date: 20.09.2023 kvs 6 THE HON'BLE SRI JUSTICE K.SURENDER CRIMINAL PETITION No.5027 OF 2021 Dt. 20.09.2023 kvs