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Supreme Court of India

STATE REP. BY THE DRUGS INSPECTORversusMANIMARAN

Citation
2018 INSC 1122
Decided
30 November 2018
Disposal
Leave Granted & Allowed

Holding

The High Court erred in overturning the conviction; the respondent’s admissions on carbon copies sufficed to prove the offence, the non‑examination of former owners was not fatal, and the sentence may be reduced under the proviso to Section 27(b)(ii).

Summary

The respondent, Manimaran, operated a medical shop without a valid drug licence and was charged under Sections 18(c), 27(b)(ii) and 28 of the Drugs and Cosmetics Act, 1940. The trial court and the first appellate court convicted him, imposing a one‑year rigorous imprisonment and a fine of Rs.5,000, but the Madras High Court, on revision, set aside the conviction on the ground that the former licence holder and shop owner were not examined and that the respondent's signatures were allegedly obtained on blank papers. The Supreme Court held that the respondent’s admissions in the carbon‑copy statements established his lack of licence, rendering the non‑examination of the former owners non‑fatal, and rejected the claim of signatures on blank papers. It further clarified that under the proviso to Section 27(b)(ii) a sentence less than the statutory minimum may be imposed for adequate and special reasons, and reduced the imprisonment to three months while retaining the fine. Consequently, the appeal was allowed, the High Court’s order was set aside, the conviction affirmed, and the sentence modified.

Issues considered

  • Whether the non‑examination of the former licence holder and shop owner defeats the prosecution case.
  • Whether the respondent's statements on carbon copies can be treated as primary evidence under the Evidence Act.
  • Whether the respondent's claim that his signatures were obtained on blank papers is a valid defence.
  • Whether the High Court, exercising revisional jurisdiction, can interfere with concurrent findings of fact of the lower courts.
  • Whether the proviso to Section 27(b)(ii) of the Drugs and Cosmetics Act permits reduction of the imprisonment term below one year.

Legislation cited

Subjects

Drugs and Cosmetics Actlicensing requirementrevision jurisdictionconcurrent findings of factcarbon copies as evidencesentence reductionsection 27(b)(ii) provisocriminal procedure

Judgment

                        [2018] 14 S.C.R. 395                            395


           STATE REP. BY THE DRUGS INSPECTOR                            A
                                 v.
                          MANIMARAN
                (Criminal Appeal No. 1493 of 2018)
                       NOVEMBER 30, 2018                                B
      [R. BANUMATHI AND INDIRA BANERJEE, JJ.]
       Drugs and Cosmetics Act, 1940 – ss. 18(c), 27(b)(ii), 28 and
proviso to 27(b)(ii) – Prosecution case was that when drugs
inspectors had inspected the respondent’s medical shop, they had
                                                                        C
found certain drugs stored without a valid licence – Memo was
issued to the respondent u/s.18(c) and afterwards chargesheet was
filed u/ss. 27(b)(ii) and 28 – Trial Court convicted the respondent
and sentenced him to undergo rigorous imprisonment for one year
and imposed fine of Rs.5000/- u/s.27(b)(ii) of the Act and fine of
Rs.500/- u/s.28 of the Act – Appeal was dismissed by the first          D
appellate Court – In revision, the High Court reversed the conviction
and acquitted the respondent holding that person in whose name
pharmacy licence stood and the person in whose name the shop
stood were not examined, and furthermore that signatures of the
respondent were taken on blank papers and that Exs.P-4, P-7 and
                                                                        E
P-10 were made using the same – On appeal, held: The High Court
did not keep in view that the respondent had admitted that he had
purchased the shop from the erstwhile owner and that he had no
licence for sale of drugs either in his name or in any other name –
When both the trial Court as well as the first appellate Court held
that non-examination of erstwhile owner of the shop and person in       F
whose name the pharmacy licence stood was not fatal, the High
Court in exercise of its revisional jurisdiction was not right in
reversing the said finding – Insofar as signatures of the respondent
on blank papers were concerned, the respondent did not lodge any
police complaint or complaint before the higher officers of the Drug
                                                                        G
inspector or caused any legal notice to the complainant, thus, it
was only an afterthought of the respondent to defend himself that
his signature were obtained on blank papers – From the evidence
of Drug inspector and the admission of the respondent, the
prosecution had established that respondent did not have licence
                                                                        H
                                395
396                SUPREME COURT REPORTS                   [2018] 14 S.C.R.


A     for sale of drugs – However, in instant case, the offence was
      committed ten years back and respondent was not having any prior
      conviction under the Act, further, he had stated in his statement that
      he was not aware that he had to obtain licence for sale of drugs –
      Therefore, in interest of justice proviso to s.27(b)(ii) of the Act
      invoked and the sentence of imprisonment of one year imposed upon
B
      the respondent reduced to three months, while maintaining the fine
      of Rs.5000/- – Jurisdiction – Revisional Jurisdiction.
            Evidence Act, 1872 – s.62 – Carbon copies – Held: Carbon
      copies can be taken into consideration as primary evidence.
C           Allowing the appeal, the Court
            HELD: 1. Upon consideration of the evidence, both the
      trial court as well as the first appellate court convicted the
      respondent under Sections 27(b)(ii) and 28 of the Drugs and
      Cosmetics Act. When there is concurrent findings by the courts
D     below, the High Court ought not to have interfered with the same
      in exercise of its revisional jurisdiction. The revisional jurisdiction
      of the High Court is different from the appellate jurisdiction. The
      High court will not normally interfere with the concurrent findings
      of fact, unless the findings of fact arrived at by the courts below is
      perverse or that the court has ignored the material evidence while
E     arriving at that finding. Ordinarily it would not be appropriate for
      the High Court to reappreciate the evidence and come to its own
      conclusion on the same when the evidence has already been
      appreciated by the Magistrate as well as by the Sessions court in
      appeal. When the courts below recorded the concurrent findings
F     of fact, the High Court was not right in interfering with the
      concurrent findings of fact arrived at by the courts below and the
      impugned order cannot be sustained. [Para 16][401-G-H;
      402-A-B]
            2. The offence under Section 18(c) of the Act is punishable
G     under Section 27(b)(ii) of the Act which prescribes minimum
      sentence of imprisonment for one year and minimum fine of
      rupees five thousand. As per proviso to Section 27(b)(ii) of the
      Act, for any adequate and special reasons to be recorded in the
      judgment, court may impose the sentence of imprisonment for a
      term less than one year and a fine of less than five thousand only.
H     In this case, the offence was committed in the year 2008, about
  STATE REP. BY THE DRUGS INSPECTOR v. MANIMARAN                            397


ten years back. The respondent was not having any prior                     A
conviction under the Act. The respondent had stated in his
statement, that he was not aware that he has to obtain a licence
for sale of drugs. Considering the facts and circumstances of the
case, in the interest of justice, proviso to Section 27(b)(ii) of the
Act can be invoked and the sentence of imprisonment of one
                                                                            B
year imposed upon the respondent is reduced to three months.
[Para 17][402-C-E]
      State of Kerala v. Puttumana Illath Jathavedan
      Namboodiri (1999) 2 SCC 452 : [1999] 1 SCR 575 –
      relied on.
                                                                            C
                        Case Law Reference
[1999] 1 SCR 575                 relied on                   Para 16
      CRIMINAL APPELLATE JURISDICTION : Criminal Appeal
No. 1493 of 2018.
                                                                            D
      From the Judgment and Order dated 12.09.2014 of the High Court
of Judicature at Madras in Crl. R.C. No. 1493 of 2013.
      M. Yogesh Kanna, S. Paratha Sarathi, Mrs.Sujatha Bagadhi,
Raja Rajeshwaran S., Advs. for the Appellant.
     Vimal Pani S.C.V, A. Lakshminarayanan., Advs. for the                  E
Respondent.
      The Judgment of the Court was delivered by
      R. BANUMATHI, J. 1. Leave granted.
      2. This appeal arises out of the judgment dated 12.09.2014 passed     F
by the High Court of Madras in Criminal R.C. No.1493 of 2013 in and
by which the High Court set aside the conviction of the respondent-
accused under Sections 27(b)(ii) and 28 of the Drugs and Cosmetics
Act, 1940 and the sentence of imprisonment imposed upon the
respondent-accused.
                                                                            G
       3. Briefly stated case of the prosecution is that the respondent
was running a medical shop viz., M/s. Sri Balaji Medicals. On the
directions issued by the Assistant Director of Drugs Control, Salem Zone,
the Drugs Inspectors had inspected the respondent’s medical shop on
17.12.2008. In the course of inspection, it was found that certain drugs
                                                                            H
398                 SUPREME COURT REPORTS                     [2018] 14 S.C.R.


A     were stored without a valid drug licence and the same were seized. A
      memo dated 22.12.2008 had been issued to the respondent-accused
      alleging contravention of Section 18(c) of the Drugs and Cosmetics Act,
      1940. The respondent had caused reply (Ex.-P4) to the said memo without
      furnishing details of purchase. The Drug Inspector has filed a charge
      sheet against the respondent informing commission of offence punishable
B
      under Sections 27(b)(ii) and 28 of the Drugs and Cosmetics Act, 1940.
      Upon consideration of evidence, the trial court after referring to Ex.-P4
      held that the respondent has admitted that he has no licence to the
      premises for sale of drugs. The trial court further held that Exs.P-4 to P-
      7 though were carbon copies, as per Section 62 of the Indian Evidence
C     Act, they can also be considered as primary evidence. On those findings,
      the trial court convicted the respondent and sentenced him to undergo
      rigorous imprisonment for one year and imposed fine of Rs.5000/- under
      Section 27(b)(ii) of the Drugs and Cosmetics Act and fine of Rs.500/-
      under Section 28 of the Drugs and Cosmetics Act. Aggrieved by the
      verdict of conviction and the sentence of imprisonment, respondent-
D
      accused preferred an appeal in Criminal Appeal No.18 of 2013 before
      the appellate court-Principal Sessions Judge, Krishnagiri which was
      dismissed vide order dated 29.08.2013.
             4. In the revision petition filed before the High Court, the High
      Court reversed the conviction and acquitted the respondent holding that
E     non-examination of erstwhile owners namely Jayanthi and Kamalakannan
      in whose name pharmacy licence stood was fatal to the prosecution
      case. The High Court also referred to the defence that the signature of
      the respondent was obtained on blank papers in which Exs.P-4, P-7 and
      P-10 were prepared.
F            5. Learned counsel for the appellant-State has submitted that the
      High Court has failed to consider that the respondent without having a
      valid licence stocked and selling the drugs and that he did not disclose
      the name of the supplier of the drugs, which is a punishable offence
      under the provisions of the Drugs and Cosmetics Act. It was further
G     submitted that the High Court erred in allowing the revision on the ground
      that the signature in Exs.P-4, P-7 and P-10 were obtained on blank
      papers and that the respondent had failed to prove such fact. It was also
      submitted that in the light of the admission made by the respondent in
      Ex.-P4, non-examination of Kamalakannan in whose name the pharmacy
      licence stood and one Jayanthi in whose name the shop stood was not
H
  STATE REP. BY THE DRUGS INSPECTOR v. MANIMARAN                              399
                  [R. BANUMATHI, J.]

fatal and the High Court erred in reversing the conviction of the             A
respondent.
       6. Per contra, the learned counsel for the respondent has submitted
that the prosecution has failed to prove that the respondent is the owner
of M/s Sri Balaji Medicals and the non-examination of Kamalakannan
and Jayanthi was fatal to the prosecution case. Learned counsel further       B
submitted that the alleged statement of the respondent in Exs.P-4, P-7
and P-10 relied upon by the prosecution were only carbon copies and
the courts below could not have based the conviction upon Exs.P-4,
P-7 and P-10 and that the High Court has rightly reversed the same.
     7. We have considered the rival submissions and perused the              C
impugned judgment and materials placed on record.
       8. At the time of inspection of the medical shop of the respondent
located at 191, Main Road, Bargur on 17.12.2008, it was found that the
retail medical shop was functioning without a valid licence in violation of
Section 18(c) of the Drugs and Cosmetics Act. It was also noticed that        D
eighty-seven items of drugs were stocked without possessing a valid
drug licence. The respondent was prosecuted for contravention of (i)
Section 18(c) of the Drugs and Cosmetics Act for having stocked and
sold drugs without a valid drug licence which is punishable under Section
27(b)(ii) of the Drugs and Cosmetics Act; and (ii) Section 18(a) of the
Drugs and Cosmetics Act for not furnishing the name of the supplier of        E
the drug which is punishable under Section 28 of the Drugs and Cosmetics
Act.
       9. The High Court has set aside the conviction mainly on the
ground of non-examination of one Kamalakannan-the person in whose
name the pharmacy licence stood and one Jayanthi in whose name the            F
shop stood. The High Court did not keep in view that under     Ex.-P4,
the respondent has admitted that he had purchased the retail shop-M/s
Sri Balaji Medicals from one Jayanthi and that he had shifted the shop
from the old place to the current premises No.191, Main Road, Bargur
and selling the drugs. Relevant portion of Ex.P4 reads as under:-             G
      “I have purchased the retail Sri Balaji Medicals two years before
      from Mrs. Jayanthi, but there is no sale deed made. Further the
      licence of this concern was expired on 31.12.2007 and not applied
      for the renewal. Meanwhile I have shifted the said shop from the
      old place to the current premises No.191, Main Road, Bargur and
                                                                              H
400                 SUPREME COURT REPORTS                      [2018] 14 S.C.R.


A           selling the drugs. There is no licence to this premises for sale of
            drugs either in my name or any other name. I have purchased the
            drugs against the old licence stood on the old address 226, Main
            Road, Bargur. I hereby inform you that there is no licence for the
            inspected premises that is 191, Main Road, Bargur. I was not
            aware of the Drugs and Cosmetics Act and its Rules since it is
B
            first time.”
            In Ex.-P4, the respondent thus admitted having purchased the
      shop from Jayanthi and that he had no licence for sale of drugs either in
      his name or in any other name.
C            10. In Ex.-P7 also, the respondent had admitted that he had
      purchased the retail shop-M/s Sri Balaji Medicals from Kamalakannan
      and continually selling the drugs and that on the date of inspection i.e. on
      17.12.2008, he did not have the valid licence. Both in Exs.P-4 and P-7,
      the respondent had stated that he was not aware that he has to obtain
      licence in his own name and apologising for the mistake and requesting
D     for issuance of licence in his name. The High Court, in our considered
      view, did not keep in view Exs.P-4 and P-7.
             11. Under Section 18(c) of the Drugs and Cosmetics Act, licence
      is required for sale of any drug. Under Section 18(c) of the Act, stocking
      or storing of drugs for sale cannot be done without a licence. Respondent
E     is charged for having stored drugs for sale without licence. Before a
      person is convicted under Section 18(c) read with Section 27(b)(ii) of
      the Act, the prosecution must establish that the drugs are stocked or
      stored for sale without licence.
             12. On the date of inspection i.e. on 17.12.2008, when
F     N. Banumathi, Drugs Inspector (PW-1) inspected the respondent’s shop,
      he did not have any licence. He only stated that he was not aware that
      he has to obtain the licence. When the respondent has stocked the drugs
      and was selling the same without licence, there was violation of Section
      18(c) of the Act which is punishable under Section 27(b)(ii) of the Act.
G     The Drugs and Cosmetics Act, 1940 is a social statute which provides
      for checks and balances so that drugs are sold strictly only by the licence-
      holder or that the adulterated drugs are not sold. From the evidence of
      PW-1 and from the admission of the respondent in Exs. P-4 and P-7, the
      prosecution has established that the respondent did not have licence for
      sale of the drugs.
H
  STATE REP. BY THE DRUGS INSPECTOR v. MANIMARAN                                401
                  [R. BANUMATHI, J.]

       13. Further during investigation, PW-1 had asked the respondent          A
through Ex.-P3 to disclose that from whom he had purchased the eighty-
seven kinds of drugs. In his reply letter (Ex.-P4), he has not disclosed
that from whom he had purchased the eighty-seven kinds of drugs and
he had admitted the contraventions by stating that he was not aware of
the procedure to obtain the licence. Respondent has only apologised for
                                                                                B
the mistake and requested to issue the licence. In the light of the admission
of the respondent in Exs.P-4 and P-7, non-examination of licence holder
Kamalakannan and shop owner Jayanthi was not fatal to the prosecution
case. When both the trial court as well as the first appellate court held
that non-examination of those two witnesses was not fatal, the High
Court in exercise of its revisional jurisdiction was not right in reversing     C
the said finding and held that non-examination of Kamalakannan and
Jayanthi was fatal to the prosecution case.
       14. Learned counsel for the respondent has submitted that
Exs.P-4 and P-7, that is, the statements of respondent were only carbon
copies and that admission of such carbon copies raises serious doubt            D
about the prosecution case. As pointed out by the trial court as well as
by the first appellate court, under Section 62 of the Indian Evidence Act,
carbon copies can be taken into consideration as primary evidence and
we find no infirmity in admitting carbon copies of those documents.
       15. Yet another contention advanced by the respondent is that his        E
signatures were obtained on blank papers and that Exs.P-4, P-7 and P-
10 have been made using the signed blank papers. As pointed out by the
courts below, if at all the signature of the respondent in Exs.P-4, P-7 and
P-10 were obtained on blank papers, the respondent could have lodged
a police complaint or a complaint before the higher officers of PW-1 or
at least could have caused a legal notice to the complainant. But that          F
was not to be so. There is no merit in the contention of the respondent
that his signature in Exs.P-4, P-7 and P-10 were obtained on blank papers
and is only an afterthought of the respondent.
       16. Upon consideration of the evidence, both the trial court as
well as the first appellate court convicted the respondent under                G
Sections 27(b)(ii) and 28 of the Drugs and Cosmetics Act. When there
is concurrent findings by the courts below, the High Court ought not to
have interfered with the same in exercise of its revisional jurisdiction.
The revisional jurisdiction of the High Court is different from the appellate
jurisdiction. The High court will not normally interfere with the concurrent    H
402                 SUPREME COURT REPORTS                      [2018] 14 S.C.R.


A     findings of fact, unless the findings of fact arrived at by the courts below
      is perverse or that the court has ignored the material evidence while
      arriving at that finding. As held in State of Kerala v. Puttumana Illath
      Jathavedan Namboodiri (1999) 2 SCC 452, ordinarily it would not be
      appropriate for the High Court to reappreciate the evidence and come
      to its own conclusion on the same when the evidence has already been
B
      appreciated by the Magistrate as well as by the Sessions court in appeal.
      When the courts below recorded the concurrent findings of fact, in our
      view, the High Court was not right in interfering with the concurrent
      findings of fact arrived at by the courts below and the impugned order
      cannot be sustained.
C            17. Insofar as the sentence of imprisonment, the offence under
      Section 18(c) of the Act punishable under Section 27(b)(ii) of the Act
      which prescribes minimum sentence of imprisonment for one year and
      minimum fine of rupees five thousand. As per proviso to Section 27(b)(ii)
      of the Act, for any adequate and special reasons to be recorded in the
D     judgment, court may impose the sentence of imprisonment for a term
      less than one year and a fine of less than five thousand only. In this case,
      the offence was committed in the year 2008, about ten years back. The
      respondent was not having any prior conviction under the Act. As pointed
      out earlier, in his statement, respondent had stated that he was not aware
      that he has to obtain a licence for sale of drugs. Considering the facts
E     and circumstances of the case, in our considered view, in the interest of
      justice proviso to Section 27(b)(ii) of the Act can be invoked and the
      sentence of imprisonment of one year imposed upon the respondent is
      reduced to three months.
             18. In the result, this appeal is allowed and the impugned judgment
F     dated 12.09.2014 in Criminal R.C.No.1493 of 2013 passed by the High
      Court of Madras is set aside. The conviction of the respondent under
      Sections 27(b)(ii) and 28 of the Drugs and Cosmetics Act, 1940 is
      affirmed and the sentence of imprisonment imposed upon him is reduced
      to three months, while maintaining the fine of Rs.5,000/-. The respondent
G     shall surrender within a period of four weeks to serve the remaining
      sentence, failing which he shall be taken into custody.

      Ankit Gyan                                                    Appeal allowed.



H


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STATE REP. BY THE DRUGS INSPECTOR versus MANIMARAN — 2018 INSC 1122 - Legal Desk AI