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[Cites 9, Cited by 0]

Delhi High Court

Unikil Pvt Ltd vs Union Of India & Anr. on 9 May, 2023

Author: Satish Chandra Sharma

Bench: Chief Justice, Subramonium Prasad

                                                     Neutral Citation Number: 2023:DHC:3402-DB

                          $~
                          *      IN THE HIGH COURT OF DELHI AT NEW DELHI

                          +                                                Date of Decision: 09.05.2023

                          %      LPA 530/2022

                                 UNIKIL PESTICIDES PVT. LTD.                         ..... Appellant
                                                         Through:   Mr. Aftab Rasheed, Advocate.
                                                versus

                                 UNION OF INDIA & ANR.                               ..... Respondents
                                                         Through:   Mr. Kirtiman Singh, CGSC with
                                                                    Mr.Waize Ali Noor, Ms. Shreya V.
                                                                    Mehra & Mr. Madhav Bajaj,
                                                                    Advocates for Respondents No.1/
                                                                    UOI.

                          +      LPA 536/2022

                                 UNIKIL PVT LTD                                      ..... Appellant
                                                         Through:   Mr. Aftab Rasheed, Advocate.
                                                versus

                                 UNION OF INDIA & ANR.                               ..... Respondents
                                                         Through:   Mr. Kirtiman Singh, CGSC with
                                                                    Mr.Waize Ali Noor, Ms. Shreya V.
                                                                    Mehra & Mr. Madhav Bajaj,
                                                                    Advocates for Respondents No.1/
                                                                    UOI.

                                 CORAM:
                                 HON'BLE THE CHIEF JUSTICE
                                 HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

                          SATISH CHANDRA SHARMA, CJ. (ORAL)


                          LPA 530/2022 & 536/2022                                               Page 1 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                  Neutral Citation Number: 2023:DHC:3402-DB

  LPA 530/2022

  1.          Regard being head to similitude in the controversy involved in both
  the LPAs, they were heard together and a common judgment is being
  passed. The facts of the LPA 530/2022 are being dealt with as under.

  2.          The Appellant before this Court has filed this present Appeal under
  Clause 10 of Letters Patent being aggrieved by an order dated 10.02.2020
  passed by the Learned Single Judge in W.P.(C.) No. 6092/2013 titled Unikil
  Pesticides Pvt. Ltd. Vs. Union of India & Anr.

  3.          The facts of the case reveal that the Writ Petition was preferred under
  Article 226 of the Constitution of India by the Appellant herein being
  aggrieved by an order dated 10.07.2013 and a prayer was made to issue
  Registration Certificate to the Appellant for "Imazathapyr molecule" under
  Section 9(4) of the Insecticides Act, 1968 (hereinafter to be referred as
  „Insecticides Act‟).

  4.          The facts of the case further reveal that the Appellant, as stated by
  him, is a leading manufacturer/ formulator of pesticides, insecticides,
  wedicides and other biocides in the State of Madhya Pradesh having a
  factory situated at Industrial Estate Vidisha, Madhya Pradesh.

  5.          The undisputed facts of the case reveal that the Petitioner preferred an
  Application under Section 9(4) of the Insecticides Act for registration of
  molecule, which was already registered under Section 9(3) of the
  Insecticides Act, and, the claim of the Appellant was rejected.

  6.          The facts further reveal that the Petitioner (Appellant herein) in the

  LPA 530/2022 & 536/2022                                                   Page 2 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                                     Neutral Citation Number: 2023:DHC:3402-DB

                          Writ Petition has stated that there is another Company namely BASF India
                          Ltd. which has registered the molecule in question under Section 9(3) of the
                          Insecticides Act, and, in those circumstances, the molecule was already a
                          registered molecule. The Appellant applied for grant of registration for
                          importing molecule under Section 9(4) of the Insecticides Act.

                                 The Appellant, thereafter, as stated by him, carried out necessary tests
                          in respect of the molecule and the same was to be imported from China.

                          7.     The facts further reveal that an order was passed on 02.06.2011
                          informing the Appellant cancellation of the registration application. The
                          Appellant, thereafter, submitted a representation on 20.12.2012, and as
                          nothing was being done, he preferred a Writ Petition before this Court i.e.
                          W.P.(C.) No. 2319/2013 and the Writ Petition was disposed of by an order
                          dated 12.04.2013 directing the Respondent to decide the representation of
                          the Appellant.

                          8.     The Registration Committee has thereafter decided the representation
                          of the Appellant by an order dated 05.05.2011, and Appellant has again filed
                          a fresh Writ Petition before this Court i.e. W.P.(C.) No. 6092/2013, and the
                          Learned Single Judge has dismissed the said Writ Petition.

                          9.     The Appellant‟s contention is that he is importing molecule from
                          China, and it is already registered under Section 9(3) of the Insecticides Act,
                          hence the application preferred by the Appellant was rightly preferred under
                          Section 9(4) of the Insecticides Act, and, therefore, the rejection is bad in
                          law.



                          LPA 530/2022 & 536/2022                                              Page 3 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                 Neutral Citation Number: 2023:DHC:3402-DB

  10.         The Respondent before this Court had defended the order passed in
  the matter, and it was argued before the Learned Single Judge as well as
  before this Court that Section 9(4) is applicable only when the import is
  from the same source.

  11.         The Learned Single Judge placing reliance upon a judgment delivered
  in the cases of Haryana Pesticides Manufacturers' Association and Ors. V.
  Central Insecticides Board & Registration Committee and Ors.,
  MANU/PH/0222/2015, and of this Court in Syngenta India Ltd. V. Union
  of India (UOI) and Ors., MANU/DE/1955/2009 has dismissed the Writ
  Petition.

  12.         This Court has carefully gone through the order passed by the
  Learned Single Judge, and heard Learned Counsel for the Parties at length.
  Section 9 of Insecticide Act reads as under.

              ―9. Registration of insecticides.--(1) Any person desiring to
              import or manufacture any insecticide may apply to the
              Registration Committee for the registration of such insecticide
              and there shall be a separate application for each such
              insecticide:
                     Provided that any person engaged in the business of
              import or manufacture of any insecticide immediately before
              the commencement of this section shall make an application to
              the Registration Committee within a period of 2 [seventeen
              months] from the date of such commencement for the
              registration of any insecticide which he has been importing or
              manufacturing before that date:

                    [Provided further that where any person referred to in
              the preceding proviso fails to make an application under that
              proviso within the period specified therein, he may make such


  LPA 530/2022 & 536/2022                                                 Page 4 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                                     Neutral Citation Number: 2023:DHC:3402-DB

                                 application at any time thereafter on payment of a penalty of
                                 one hundred rupees for every month or part thereof after the
                                 expiry of such period for the registration of each such
                                 insecticide.]

                                       (2) Every application under sub-section (1) shall be
                                 made in such form and contain such particulars as may be
                                 prescribed.
                                        (3) On receipt of any such application for the registration
                                 of an insecticide, the Committee may, after such enquiry as it
                                 deems fit and after satisfying itself that the insecticide to which
                                 the application relates conforms to the claims made by the
                                 importer or by the manufacturer, as the case may be, as
                                 regards the efficacy of the insecticide and its safety to human
                                 beings and animals, register 1 [on such conditions as may be
                                 specified by it] and on payment of such fee as may be
                                 prescribed, the insecticide, allot a registration number thereto
                                 and issue a certificate of registration in token thereof within a
                                 period of twelve months from the date of receipt of the
                                 application:

                                       Provided that the Committee may, if it is unable within
                                 the said period to arrive at a decision on the basis of the
                                 materials placed before it, extend the period by a further period
                                 not exceeding six months:

                                        Provided further that if the Committee is of opinion that
                                 the precautions claimed by the applicant as being sufficient to
                                 ensure safety to human beings or animals are not such as can
                                 be easily observed or that notwithstanding the observance of
                                 such precautions the use of the insecticide involves serious risk
                                 to human beings or animals, it may refuse to register the
                                 insecticide.

                                       [(3A) In the case of applications received by it prior to
                                 the 31st day of March, 1975, notwithstanding the expiry of the
                                 period specified in sub-section (3) for the disposal of such
                                 applications, it shall be lawful and shall be deemed always to
                                 have been lawful for the Registration Committee to dispose of

                          LPA 530/2022 & 536/2022                                                Page 5 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                  Neutral Citation Number: 2023:DHC:3402-DB

              such applications at any time after such expiry but within a
              period of one year from the commencement of the Insecticides
              (Amendment) Act, 1977 (24 of 1977):

                    Provided that nothing contained in this sub-section shall
              be deemed to make any contravention before the
              commencement of the Insecticides (Amendment) Act, 1977 (24
              of 1977), of a condition of a certificate of registration granted
              before such commencement, an offence punishable under this
              Act.

                     (3B) Where the Registration Committee is of opinion that
              the insecticide is being introduced for the first time in India, it
              may, pending any enquiry, register it provisionally for a period
              of two years on such conditions as may be specified by it.
                     (3C) The Registration Committee may, having regard to
              the efficacy of the insecticide and its safety to human beings
              and animals, vary the conditions subject to which a certificate
              of registration has been granted and may for that purpose
              require the certificate-holder by notice in writing to deliver up
              the certificate to it within such time as may be specified in the
              notice.]

                     (4) Notwithstanding anything contained in this section,
              where an insecticide has been registered on the application of
              any person, any other person desiring to import or manufacture
              the insecticide or engaged in the business of, import or
              manufacture thereof shall on application and on payment of
              prescribed fee be allotted a registration number and granted a
              certificate of registration in respect thereof on the same
              conditions on which the insecticide was originally registered.‖

  13.         Section 9(3) and 9(4) of the Insecticides Act read together provides
  that in case an Application is made for registration of molecule under
  Section 9(3), the Committee has to scrutinize the Application and confirm to
  the claim made by the importer or by the manufacturer, as the case may be,
  as regards to efficacy of the insecticides and its safety to human beings and

  LPA 530/2022 & 536/2022                                                     Page 6 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                                     Neutral Citation Number: 2023:DHC:3402-DB

                          animals, and if satisfied, it can be registered. Section 9(4) of the Insecticides
                          Act, which is a me-too registration, categorically provides that in case the
                          insecticide is already registered and any other person who wants to import or
                          manufacture such insecticide, is entitled to apply for grant of certificate of
                          registration on the same conditions on which the insecticide was originally
                          registered.

                                 Meaning thereby, if a molecule/ insecticide has to be registered under
                          Section 9(4), it has to be from the same source as held by Coordinate Bench
                          of this Court in the case of Syngenta India Ltd. (Supra).
                          14.    The issue involved in the present case is no longer res integra.

                          15.    The Punjab & Haryana High Court in Haryana Pesticides
                          Manufactures‟ Association and Ors. (supra) on considering the two
                          provisions, has held as under:

                                 ―7. This sub-section, it can be noticed provide for a fast track
                                 where the insecticide has been registered on the application of
                                 a person. It contemplates therefore that a person who applies
                                 for certificate on a 'me-too basis' merely falls in the line to
                                 claim the registration because the insecticide is already
                                 registered on assessment of the formulation, its efficacy and
                                 safety. Though sub-section 4 does not make any reference to the
                                 registered insecticide of a particular technical manufacturer, I
                                 will understand that every registered insecticides is of a
                                 formulation brought through unique process. Same compound
                                 formulations may come through different processes. The
                                 product through different processes may not necessarily have
                                 same safety or efficacy. There may be impurities in one process
                                 which may not be in another registered insecticides brought
                                 through a technical manufacturer tested before registration
                                 under Section 9 (3) ought to be qua the said manufacturer only.
                                 To that extent source of supply becomes very relevant. Another

                          LPA 530/2022 & 536/2022                                                Page 7 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                  Neutral Citation Number: 2023:DHC:3402-DB

              technical manufacturer having the same formulation may still
              have a different efficacy for the product which is brought
              through another process. Indian patent law protects not merely
              process patent but also product patent. The end product may
              enjoy some protection so that the registered insecticide of the
              manufacturers shall not be replicated by another manufacturer
              even through a different process. Consequently, it is perfectly
              tenable to put a 'me-too' application of a technical
              manufacturer through a different source is treated as an
              application under Section 9 (3) for consideration. The
              registration is to the products, namely, of the insecticide in its
              particular formulation and not the registration of a product of
              the particular manufacturer, who is identified supplier from a
              particular source. Consequently, any other person desiring to
              import or manufacture insecticide cannot be compelled to show
              anything more than he is importing a registered insecticide.‖
  16.         This Court also in Syngenta India Ltd. (supra), placing reliance on the
  Checklist issued by the Committee observed that the same condition as
  mentioned in Section 9(4) of the Act would necessarily mean and include
  the same source of import also. Relevant findings of the Court are
  reproduced hereinbelow:

              ""8. Section 5 of the Act vests the power / function to scrutinize,
              examine and analyze insecticides as to their safety and efficacy
              on the Committee. Section 5 makes elaborate provisions for the
              constitution and functions of the Committee, for enabling
              registration of insecticides on the receipt of applications, after
              enquiring into the safety and efficacy of the product. Under
              Section 5(5), the Committee regulates its procedure and
              conduct of business, including the grant of registrations of
              parties desirous of importing or manufacturing insecticides, for
              which purpose it has formulated guidelines. It has also issued a
              Checklist specifying the various parameters on which data is
              required to be submitted by an applicant along with its
              application for registration. Rule 4 of the Insecticides Rules


  LPA 530/2022 & 536/2022                                                     Page 8 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                                      Neutral Citation Number: 2023:DHC:3402-DB

                                 elaborates on the functions of the Committee. Section 9 of the
                                 Act provides for three kinds of registrations: (i) Section 9(3-B)
                                 - a provisional registration which is granted to an applicant for
                                 a period of two years when an insecticide is introduced for the
                                 first time in India. It can be granted pending an enquiry and
                                 also in the event of agricultural exigencies. This section
                                 presupposes insufficiency of examination of data by the
                                 Committee; (ii) Section 9(3) - regulation registration - The
                                 regular registration is granted only after submission of
                                 complete data by an applicant. The Committee conducts a full
                                 and indepth study of the data and has to be ensure itself of the
                                 efficacy, toxicity and safety (for humans and other animals) of
                                 the insecticide before granting registration; and (iii) Section 9
                                 (4) provides for what is popularly known as a ―Me Too‖
                                 ―registration‖. The registration under Section 9(4) is granted
                                 on same conditions and is only granted when there already
                                 exists a registration under Section 9 (3) for a particular
                                 Insecticide. It is obvious that these ―same‖ conditions
                                 necessarily mean and include the same source of import also.

                                 9. At this stage, we may refer to the guidelines framed by the
                                 Committee for the registration of insecticides and parameters /
                                 criterion fixed by it to effectuate verification of the efficacy and
                                 safety of the insecticides. The Committee has issued a Checklist
                                 specifying the various parameters on which data is required to
                                 be submitted by an applicant along with its application for
                                 registration - like Chemistry; Bio-efficacy, toxicity, etc. The
                                 Checklist has enumerated categories under which the
                                 registration of an insecticide can be sought, the relevant
                                 categories (for the present Appeal) are :

                                 (a) TIT - import of technical

                                 (b) FIM - indigenous manufacture of formulation.

                                 (c) FIT - import of formulation.
                                 (d) TIT (new source) - import of technical from a different /
                                 new source.


                          LPA 530/2022 & 536/2022                                                 Page 9 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                  Neutral Citation Number: 2023:DHC:3402-DB

              10. The Checklist framed by the Committee is at pages 151 -
              156 of the compilation and the Checklist for TIT (new source),
              which is at page 151, makes it clear that the Committee has laid
              down that in the case of registration of an insecticide which has
              already been permitted by the Committee in the past under
              Section 9(3)of the Act, and which is now proposed to be
              procured from a new source, only the attenuated or reduced
              data, material evidence specified under column no. 12 of the
              Checklist is required to be furnished and if such data is
              furnished then the applicant will be entitled in law to
              registration under Section 9(3) of the Act. We may also mention
              that the Central Government has issued the circular dated
              30.10.2007 introducing a concept of deemed registration of the
              technical/active ingredient of the formulation without a
              separate application being made for the same. The circular
              also provides for data protection for three years from the date
              of registration of the formulation. By OM dated 18.2.2008 the
              Central Government has clarified that the period of three years
              is to be reckoned not from the date of the grant of registration
              under Section 9(3) of the Act but if applicable, from the grant of
              provisional registration under Section 9(3B), if previously
              granted with permission to commercialize.

              11. In the above background of the provisions of the Act, rules
              and the relevant guidelines, we may now proceed to deal with
              the submissions made by the learned senior counsel appearing
              for the appellant. Submissions (i) & (ii)

              12. We have gone through the entire records and it is
              absolutely clear to us that in the present case, the registration
              which was granted to respondent no. 3 was under Section 9(3)
              and not under Section 9(4) of the Act. It is also seen from the
              records that for the purpose of taking the decision to grant
              registration to respondent no. 3 under Section 9(3), the
              Committee has followed the standard guidelines and criteria
              which are set out in the Checklist framed and issued by the
              Committee, in exercise of its statutory powers under Section
              5(5) read with Section 9(3) of the Act, under which it is the
              prerogative of the Committee to decide the criteria, material,

  LPA 530/2022 & 536/2022                                                   Page 10 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                                     Neutral Citation Number: 2023:DHC:3402-DB

                                 evidence and data on the basis of which the Committee would
                                 take a decision to grant registration under Section 9(3) of the
                                 Act.....

                                                                xxx

                                 15. Insofar as the allegation of dilution of data is concerned it
                                 is required to be noted that no provision of the Act, or Rules,
                                 prescribe or enact data exclusivity or protection. The October
                                 2007 guidelines, directing a data exclusivity provision, was
                                 brought into force after the appellant's registration certificate
                                 was issued. As per the circular dated 30.10.2007, as amended
                                 by OM dated 18.2.2008, the exclusivity is only for a period of
                                 three years from the date of the provisional registration. Thus
                                 the period prescribed under the circular had already expired
                                 before the registration granted to the third respondent. It is also
                                 pertinent to note that no challenge has been raised to the OM
                                 dated 18.2.2008 in the writ petition though submission appears
                                 to have been raised across the Bar questioning the OM on the
                                 ground of the arbitrariness. In any event, we find that the
                                 submission regarding the data protection is completely
                                 misconceived. It is not the case of the appellant that the
                                 respondent no. 3 in importing its ―TIT‖ has in any way violated
                                 the confidentiality of appellant's data. Mr.Ganesh, appearing
                                 for the respondent No.3, submitted and in our opinion, rightly,
                                 that in a case of registration of ―TIT‖ (new source) it is not as
                                 if the applicant is utilizing the materials or the intellectual
                                 property of the earlier applicant. The correct position is that
                                 since the Committee has, on an earlier occasion after fully and
                                 carefully studying all the relevant and applicable materials,
                                 approved a particular insecticide there is no need thereafter for
                                 another applicant who wishes to import the same insecticide
                                 albeit from a different source to reinvent the wheel as it were
                                 and to place on record the entire mass of material and data
                                 which was required to register the said insecticide originally.
                                 In such a situation that the Committee, which is a high powered
                                 technical body, has considered it appropriate to issue a
                                 Checklist providing that when a person desires to import the
                                 same insecticide, but from a different source, the requirement of

                          LPA 530/2022 & 536/2022                                               Page 11 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                  Neutral Citation Number: 2023:DHC:3402-DB

              submission of data are appropriately reduced. The respondent
              no. 3 has fully complied with the guidelines of the requirements
              of the Checklist issued by the Committee. In our opinion,
              therefore there is no illegality in the action of the Committee in
              granting registration in favour of the third respondent. In our
              opinion, the whole object of initiating these proceedings is to
              somehow continue the monopoly of the appellant in the product
              and sale of the insecticide in question. It is pertinent to note
              that now the third respondent is selling the same insecticide
              approximately at the rate of Rs.5,000 per kg. which has been all
              along sold by the appellant at the rate of about Rs.9,000/- per
              kg.‖ (emphasis added)‖



  17.         In the considered opinion of this Court, the Learned Single Judge was
  justified in holding that the Petitioner‟s (Appellant herein) case does not fall
  under Section 9(4) of the Insecticides Act as the Petitioner was not
  importing the molecule from the same source, and, therefore the
  Registration Committee in its 229th Meeting has rightly declined the
  Petitioner‟s claim for registration under Section 9(4).

  18.         The Statutory Provisions governing the field, as contained under
  Section 9 of the Insecticides Act, makes it very clear that in case a person
  wants a registration of a molecule/ insecticide and the source is changed, the
  Application has to be made under Section 9(3) of the Insecticides Act, 1968.

  19.         This Court does not find any reason to interfere with the order passed
  by the Learned Single Judge. Accordingly, the present Appeal i.e. LPA
  530/2022 stands dismissed.




  LPA 530/2022 & 536/2022                                                   Page 12 of 13
Signature Not Verified
Digitaaly Signed
By:BHUPINDER SINGH
ROHELLA
Signing Date:17.05.2023
11:13:54
                                                     Neutral Citation Number: 2023:DHC:3402-DB

                          LPA 536/2022

                                 In light of the order passed in the LPA 530/2022, this Appeal i.e. LPA
                          536/2022 which is connected with the said LPA, and also is a case of me-too
                          registration deserves to be dismissed. Accordingly, this LPA also stands
                          dismissed.



                                                                SATISH CHANDRA SHARMA, CJ



                                                                     SUBRAMONIUM PRASAD, J.

MAY 09, 2023 aks LPA 530/2022 & 536/2022 Page 13 of 13 Signature Not Verified Digitaaly Signed By:BHUPINDER SINGH ROHELLA Signing Date:17.05.2023 11:13:54