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Supreme Court of India

STATE OF PUNJABversusRAKESH KUMAR

Citation
2018 INSC 1131
Decided
3 December 2018
Disposal
Appeal(s) allowed

Holding

Possession of manufactured narcotic drugs without authorization constitutes a prima facie violation of Section 8 of the NDPS Act, making the NDPS Act applicable and precluding reliance on the Drugs and Cosmetics Act, and the High Court's order suspending the sentence is set aside.

Summary

The accused were apprehended with bulk quantities of manufactured narcotic drugs and were convicted under Sections 21 and 22 of the Narcotic Drugs and Psychotropic Substances (NDPS) Act. The High Court, however, suspended their sentences under Section 389 of the Code of Criminal Procedure, holding that the matter should be tried under the Drugs and Cosmetics Act because the drugs were "manufactured". The State appealed, contending that the NDPS Act, a special law for narcotic substances, applies and that the High Court erred in granting suspension while the appeals were pending. The Supreme Court examined the legislative intent of both Acts, held that possession of manufactured narcotic drugs without authorization is a prima facie violation of Section 8 of the NDPS Act, and that the NDPS Act is not excluded by the Drugs and Cosmetics Act. Consequently, the Court set aside the High Court's order suspending the sentence and directed that the accused be taken into custody, allowing the State's appeal.

Issues considered

  • Whether possession of "manufactured drugs" falls under the NDPS Act or the Drugs and Cosmetics Act, 1940.
  • Whether Section 80 of the NDPS Act bars the application of the Drugs and Cosmetics Act.
  • Whether the High Court could grant suspension of sentence under Section 389 CrPC while the appeals were pending and on merits of the case.
  • Whether the NDPS Act should be read in exclusion to the Drugs and Cosmetics Act.

Legislation cited

Subjects

NDPS ActDrugs and Cosmetics ActSuspension of sentenceSection 389 CrPCManufactured drugsLegislative intentCriminal procedure

Judgment

                       [2018] 14 S.C.R. 415                            415


                         STATE OF PUNJAB                               A
                                   v.
                          RAKESH KUMAR
                  (Criminal Appeal No. 1512 of 2018)
                        DECEMBER 03, 2018
                                                                       B
     [N. V. RAMANA, MOHAN M. SHANTANAGOUDAR,
                          M. R. SHAH, JJ.]
        Code of Criminal Procedure, 1973: s.389 – Suspension of
sentence – In the instant case, the respondents were apprehended
with “manufactured drugs” and convicted by trial court under ss.21
and 22 of the NDPS Act – High Court allowed the applications for       C
suspension of sentence filed by accused-respondents holding that,
since the instant matters related to “manufactured drugs”, the
respondents should have been tried for the violation of provisions
of Drugs and Cosmetics Act, 1940 and not under the NDPS Act –
State filed instant appeals – Held: While the Drugs and Cosmetics      D
Act deals with drugs which are intended to be used for therapeutic
or medicinal usage, the NDPS Act intends to curb and penalize the
usage of drugs which are used for intoxication or for getting a
stimulant effect – Thus, NDPS Act, should not be read in exclusion
to Drugs and Cosmetics Act – Additionally, it is the prerogative of
the State to prosecute the offender in accordance with law – In the    E
instant case, since the action of the accused-Respondents amounted
to a prima-facie violation of s.8 of the NDPS Act, they were charged
under s.22 of the NDPS Act – The decision rendered by High Court
that the accused-respondents must be tried under the Drugs and
Cosmetics Act, 1940 instead of the NDPS Act, as they were found in     F
possession of the “manufactured drugs”, does not hold good in
law – Further, the accused-respondents had approached the High
Court seeking suspension of sentence – However, in granting the
relief, the High Court erroneously made observations on the merits
of the case while the appeals were still pending before it – In view
of the facts and circumstances of the instant case and gravity of      G
offence alleged against accused-respondents, the order of High
Court directing suspension of sentence and grant of bail was clearly
unsustainable in law and is set aside – Drugs and Cosmetics
Act,1940 – Narcotic Drugs and Psychotropic Substances Act, 1985
– ss.21 and 22.
                                                                       H
                                  415
416               SUPREME COURT REPORTS                [2018] 14 S.C.R.


A          Drugs and Cosmetics Act, 1940: Legislative intent of
      enactment – Discussed.
            Narcotic Drugs and Psychotropic Substances Act, 1985:
      Legislative intent of enactment – Discussed.
           Allowing the appeals, the Court
B
            HELD: 1.1 The Drugs and Cosmetics Act, 1940 was
      enacted to specifically prevent sub-standard drugs and to maintain
      high standards of medical treatment. The Drugs and Cosmetics
      Act,1940 was mainly intended to curtail the menace of adulteration
      of drugs and also of production, manufacture, distribution and
C     sale of spurious and sub-standard drugs. On the other hand, the
      N.D.P.S Act is a special law enacted by the Parliament with an
      object to control and regulate the operations relating to narcotic
      drugs and psychotropic substances. While the Drugs and
      Cosmetics Act deals with drugs which are intended to be used
D     for therapeutic or medicinal usage, on the other hand the
      N.D.P.S Act intends to curb and penalize the usage of drugs which
      are used for intoxication or for getting a stimulant effect.
      [Para 8][422-G-H; 423-A]
           Chimanlal Jagjivandas Sheth v. State of Maharashtra AIR
E          1963 SC 665 : [1963] Suppl. SCR 344 – relied on
           Inderjeet Singh v. State of Punjab 2014 (3) RCR (Crl) 953 –
           referred to
             1.2 Section 8 of the 1985 Act, is the prohibitory clause
      whose violation would lead to penal consequence. Further, Section
F     21 provides for punishment for contraventions in relation to
      manufactured drugs and preparations and Section 22 provides
      for punishment for contraventions in relation to psychotropic
      substances. Both the above provisions provide for the imposition
      of rigorous imprisonment for a term which shall not be less than
      ten years but which may extend to twenty years, and the imposition
G
      of a fine which shall not be less than one lakh rupees but which
      may be extended to two lakh rupees, if the recovered substance
      amounts to commercial quantity. However, the proviso
      appended thereto empowers the Court, with a discretionary
      power to impose a fine exceeding two lakh rupees. In the instant
H
            STATE OF PUNJAB v. RAKESH KUMAR                               417


case, the accused-respondents were found in bulk possession               A
of manufactured drugs without any valid authorization.
[Paras 9, 10, 11][423-B, G-H; 924-B-C]
      Union of India v. Sanjeev V. Deshpande (2014) 13 SCC
      1 : [2014] 11 SCR 981 – relied on
      2. The N.D.P.S Act, should not be read in exclusion to Drugs        B
and Cosmetics Act, 1940. Additionally, it is the prerogative of
the State to prosecute the offender in accordance with law. In the
instant case, since the action of the accused-Respondents
amounted to a prima-facie violation of Section 8 of the N.D.P.S
Act, they were charged under Section 22 of the N.D.P.S Act. The           C
decision rendered by the High Court holding that the accused-
respondents must be tried under the Drugs and Cosmetics Act,
1940 instead of the N.D.P.S Act, as they were found in possession
of the “manufactured drugs”, does not hold good in law. Further,
the accused-respondents had approached the High Court seeking
suspension of sentence. However, in granting the said relief,             D
the High Court erroneously made observations on the merits of
the case while the appeals w ere still pending before it.
[Paras 15, 16][425-F-H]
                       Case Law Reference
                                                                          E
2014 (3) RCR (Crl) 953          referred to              Para 5
[2014] 11 SCR 981               relied on                Para 5
[1963] Suppl. SCR 344           relied on                Para 8
      CRIMINAL APPELLATE JURISDICTION : Criminal Appeal
                                                                          F
No. 1512 of 2018.
      From the Judgment and Order dated 29.01.2018 of the High Court
of Punjab and Haryana at Chandigarh in CRM– 32387 of 2015 in CRA-
S-840-SB of 2015.
                                 With                                     G
      Criminal Appeal Nos. 1514, 1515, 1517, 1516, 1513, 1518, 1521,
1530, 1520, 1526, 1525, 1519, 1528, 1523, 1527, 1524, 1529, 1522, 1533,
1532, 1536, 1531, 1534 and 1535 of 2018.
      Ms. Jaspreet Gogia, Ms.Mandakini Singh, Advs. for the Appellant.
                                                                          H
418                SUPREME COURT REPORTS                     [2018] 14 S.C.R.


A            Aman Preet Singh Rahi, A.Venayagam Balan, Nitin Kumar
      Thakur, Ms. S. Janani, Ms. Shruti Bist, Varinder Kumar Sharma,
      N. P. Joshi, Sandeep Sharma, A. Deb Kumar, A. Lakshminarayanan,
      Ms. Nidhi, Manik Garg, Rameshwar Prasad Goyal, Chirag Girdhar,
      Dinesh Verma, S. L. Aneja, Ajay Singh, Sukhdev Singh, Jinendra Jain,
      Pranay Jain, Vibhuti Sushant Gupta, Ram Naresh Yadav, A. Tewari,
B
      Ms. Eliza Bar, Shree Pal Singh, Subhasish Bhowmick, Vineet Bhagat,
      K. G. Bhagat Vikram Vishal Minhas Advs. for the Respondent.
            The Judgment of the Court was delivered by
            N. V. RAMANA, J. 1. Leave granted.
C           2. The present appeals are filed by the State having been aggrieved
      by the common judgment and order dated 29th January, 2018 passed by
      the High Court of Punjab and Haryana, allowing the applications for
      suspension of sentence, preferred by the accused-respondents herein
      under Section 389 Cr.P.C. and directing to release them on bail, while
D     the Appeals are pending in the High Court.
             3. In order to appreciate the merits of theseappeals, brief facts
      which have emerged from the case of the prosecution need to be noted
      at the outset. In all these appeals, the accused-respondents were
      apprehended with“manufactured drugs” and convicted by the Trial Court
E     for offences committed under Section 21 or Section 22 of the Narcotic
      Drugs and Psychotropic Substances Act, 1985 (hereinafter referred to
      as “N.D.P.SAct”). The alleged offences and conviction recorded by
      the Trial Court against the respondents are listed below:


F




G




H
STATE OF PUNJAB v. RAKESH KUMAR   419
        [N. V. RAMANA, J.]

                                  A




                                  B




                                  C




                                  D




                                  E




                                  F




                                  G




                                  H
420   SUPREME COURT REPORTS   [2018] 14 S.C.R.


A




B




C




D




E




F




G




H
             STATE OF PUNJAB v. RAKESH KUMAR                                  421
                     [N. V. RAMANA, J.]

                                                                              A




                                                                              B




                                                                              C




                                                                              D




                                                                              E




                                                                              F
       4. Aggrieved by the Judgment and conviction by the respective 4.
Trial Courts, the accused-respondents approached the High Court through
various appeals. The accused-respondents, during the pendency of the
appeals, preferred an application seeking suspension of sentence. Since
a common question of law was involved in the above appeals, the High
Court heard the matters together and passed a common order dated              G
29.01.2018, allowing the applications for suspension of sentence preferred
by the accused-respondents. The High Court observed that manufactured
drugs, be it containing narcotic drugs or psychotropic substances, if
manufactured by a manufacturer, must be tried, if violation is there, under
the Drugs and Cosmetics Act and not under the NDPS Act, except                H
422                 SUPREME COURT REPORTS                       [2018] 14 S.C.R.


A     those in loose form by way of powder, liquid etc. Dissatisfied by the
      above order dated 29.01.2018, the State has preferred the present appeals.
             5. The counsel on behalf of the appellant-State, while criticizing
      the impugned order passed by the High Court, drew our attention to the
      relevant provisions of the N.D.P.S Act and Drugs and Cosmetics Act,
B     1940, and submitted that, the N.D.P.S Act, itself does not bar the
      application of the Drugs and Cosmetics Act, 1940. Further, the counsel
      also argued that, the impugned judgment is in gross violation of the decision
      rendered in Inderjeet Singh v. State of Punjab 2014 (3) RCR (Criminal)
      953, by the Division Bench of the Punjab and Haryana High Court. The
      counsel also relied upon the decision rendered by this Court in Union of
C     India v. Sanjeev V. Deshpande (2014) 13 SCC 1, wherein it was clearly
      held that dealing in narcotic drugs and psychotropic substances is
      permissible only if it is for medical or scientific purposes. But even the
      usage for medical and scientific purposes is not restriction free, as it is
      subject to rules under the N.D.P.S Act.
D             6. On the contrary, the counsel on behalf of the accused-
      respondents has supported the reasoning of the High Court while stating
      that it is very farfetched to presume that, any person who is apprehended
      with bulk quantity of manufactured drug, without having a license for
      the same, has committed an offence which is liable to be prosecuted
E     under the N.D.P.S Act. The counsel further submitted that, the High
      Court was correct to conclude that, it can be considered as a violation of
      the provisions of the Drugs and Cosmetics Act, 1940. Therefore, there
      was no error in granting the relief of suspension of sentence, considering
      that the appeals are not going to be adjudicated in the near future.

F           7. Heard the learned counsel for both the parties.
             8. At the outset it is essential to note the objectives of the two
      legislations before us, i.e., the Drugs and Cosmetics Act, 1940 and the
      N.D.P.S Act. The Drugs and Cosmetics Act, 1940 was enacted to
      specifically prevent sub-standard drugs and to maintain high standards
G     of medical treatment. (See Chimanlal Jagjivandas Sheth v. State of
      Maharashtra AIR 1963 SC 665) The Drugs and Cosmetics Act,1940
      was mainly intended to curtail the menace of adulteration of drugs and
      also of production, manufacture, distribution and sale of spurious and
      sub-standard drugs. On the other hand, the N.D.P.S Act is a special law
      enacted by the Parliament with an object to control and regulate the
H     operations relating to narcotic drugs and psychotropic substances. After
              STATE OF PUNJAB v. RAKESH KUMAR                                     423
                      [N. V. RAMANA, J.]

analyzing the objectives of both the Acts, we can safely conclude that            A
while the Drugs and Cosmetics Act deals with drugs which are intended
to be used for therapeutic or medicinal usage, on the other hand the
N.D.P.S Act intends to curb and penalize the usage of drugs which are
usedfor intoxication or for getting a stimulant effect.
      9. At this juncture, it is also pertinent to note the relevant provisions   B
under the N.D.P.S Act. Section 8 of the 1985 Act, is the prohibitory
clause whose violation would lead to penal consequence:
       Section 8. Prohibition of certain operations. -No person shall-
       (a) cultivate any coca plant or gather any portion of coca plant; or
                                                                                  C
       (b) cultivate the opium poppy or any cannabis plant; or
       (c) produce, manufacture, possess, sell, purchase, transport,
       warehouse, use, consume, import inter-State, export inter-State,
       import into India, export from India or transship any narcotic drug
       or psychotropic substance,                                                 D
       except for medical or scientific purposes and in the manner and
       to the extent provided by the provisions of this Act or the rules or
       orders made thereunder and in a case where any such provision,
       imposes any requirement by way of licence, permit or authorization
       also in accordance with the terms and conditions of such licence,
                                                                                  E
       permit or authorization:
       Provided that, and subject to the other provisions of this Act and
       the rules made there under, the prohibition against the cultivation
       of the cannabis plant for the production of ganja or the production,
       possession, use, consumption, purchase, sale, transport,
                                                                                  F
       warehousing, import inter-State and export inter State of ganja
       for any purpose other than medical and scientific purpose shall
       take effect only from the date which the Central Government
       may, by notification in the Official Gazette, specify in this behalf.
       10. Further, Section 21 provides for punishment for contraventions
in relation to manufactured drugs and preparations and Section 22                 G
provides for punishment for contraventions in relation to psychotropic
substances. Both the above provisions provide for the imposition of
rigorous imprisonment for a term which shall not be less than ten years
but which may extend to twenty years, and the imposition of a fine
which shall not be less than one lakh rupees but which may be extended            H
424                 SUPREME COURT REPORTS                      [2018] 14 S.C.R.


A     to two lakh rupees, if the recovered substance amounts to commercial
      quantity. However, the proviso appended thereto empowers the Court,
      with a discretionary power to impose a fine exceeding two lakh rupees
      for reasons to be recorded in the judgment.
             11. In the present case, the accused-respondents were found in
B     bulk possession of manufactured drugs without any valid authorization.
      The counsel on behalf of the appellant-State has extensively stressed
      that the actions of the accused-Respondents amounts to clear violation
      of Section 8 of the N.D.P.S Act as it clearly prohibits possession of
      narcotic substances except for medicinal or scientific purposes. In
      furtherance of the same, the counsel on behalf of the appellant-State
C     has put emphasis on the judgment rendered by this court in the case of
      Union of India vs. Sanjeev V. Deshpande (supra), wherein it was
      held that:
            “25. In other words, DEALING IN narcotic drugs and
            psychotropic substances is permissible only when such DEALING
D           is for medical purposes or scientific purposes. Further, the mere
            fact that the DEALING IN narcotic drugs and psychotropic
            substances is for a medical or scientific purpose does not
            by itself lift the embargo created Under Section 8(c). Such a
            dealing must be in the manner and extent provided by the provisions
E           of the Act, Rules or Orders made thereunder. Sections 9 and 10
            enable the Central and the State Governments respectively to
            make rules permitting and regulating various aspects (contemplated
            under Section 8(c), of DEALING IN narcotic drugs and
            psychotropic substances.

F           26.The Act does not contemplate framing of rules for prohibiting
            the various activities of DEALING IN narcotic drugs and
            psychotropic substances. Such prohibition is already contained in
            Section 8(c). It only contemplates of the framing of Rules
            for permitting and regulating any activity of DEALING IN
            narcotic drugs or psychotropic substances…”
G
                                                          (emphasis supplied)
            12. In the present appeals before us, the trial courts after analyzing
      the evidence placed before them, held the accused Respondents guilty
      beyond reasonable doubt and convicted them for offences committed
      under Section 21 and Section 22 of the N.D.P.S Act.
H
             STATE OF PUNJAB v. RAKESH KUMAR                                  425
                     [N. V. RAMANA, J.]

      13. The counsels for the accused-respondents have strongly              A
supported the judgment of the High Court wherein it was held that, since
the present matters deal with “manufactured drugs” the present
respondents should be tried for the violation of provisions of Drugs and
Cosmetics Act, 1940.
       14. However, we are unable to agree on the conclusion reached          B
by the High Court for reasons stated further. First, we note that Section
80 of the N.D.P.S Act, clearly lays down that application of the Drugs
and Cosmetics Act is not barred, and provisions of N.D.P.S. Act can be
applicable in addition to that of the provisions of the Drugs and Cosmetics
Act. The statute further clarifies that the provisions of the N.D.P.S Act
are not in derogation of the Drugs and Cosmetics Act, 1940. This Court        C
in the case of Union of India vs. Sanjeev V. Deshpande (supra), has
held that,
      “35. …essentially the Drugs & Cosmetics Act, 1940 deals with
      various operations of manufacture, sale, purchase etc. of drugs
      generally whereas Narcotic Drugs and Psychotropic                       D
      Substances Act, 1985 deals with a more specific class of
      drugs and, therefore, a special law on the subject. Further
      the provisions of the Act operate in addition to the provisions of
      1940 Act.”
                                                    (emphasis supplied)       E

       15. The aforesaid decision further clarifies that, the N.D.P.S Act,
should not be read in exclusion to Drugs and Cosmetics Act, 1940.
Additionally, it is the prerogative of the State to prosecute the offender
in accordance with law. In the present case, since the action of the
accused-Respondents amounted to a prima-facie violation of Section 8          F
of the N.D.P.S Act, they were charged under Section 22 of the N.D.P.S
Act.
       16. In light of above observations, we find that decision rendered
by the High Court holding that the accused-respondents must be tried
under the Drugs and Cosmetics Act, 1940 instead of the N.D.P.S Act,           G
as they were found in possession of the “manufactured drugs”, does not
hold good in law. Further, in the present case, the accused-respondents
had approached the High Court seeking suspension of sentence. However,
in granting the aforesaid relief, the High Court erroneously made
observations on the merits of the case while the appeals were still pending
                                                                              H
before it.
426                   SUPREME COURT REPORTS                    [2018] 14 S.C.R.


A             17. Considering the facts and circumstances of the present case
      and the gravity of offence alleged against the accused-respondents, the
      order of the High Court directing suspension of sentence and grant of
      bail is clearly unsustainable in law and the same is liable to be set aside.
            18. Accordingly the impugned order passed by the High Court is
B     hereby set aside and the concerned authorities are directed to take the
      accused-respondents herein into custody forthwith.
             19. Lastly, the counsels for respondents in Appeals arising out of
      SLP (Crl) No.4816/2018 and SLP (Crl) No.4817/2018 have specifically
      pleaded that the respondents have already undergone a considerable
C     period under incarceration. In light of the same, we request the High
      Court to expedite the hearings and dispose of the appeals accordingly. It
      is needless to observe that the observations made during the course of
      this order are only for deciding these appeals.
            20. The appeals stand allowed in aforesaid terms. As a sequel
D     pending applications, if any shall also stand disposed of.

      Devika Gujral                                                Appeals allowed.




E




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