SWANTRAJ Vs. STATE OF MAHARASHTRA
LAWS(SC)-1974-2-22
SUPREME COURT OF INDIA (FROM: BOMBAY)
Decided on February 05,1974

SWANTRAJ Appellant
VERSUS
STATE OF MAHARASHTRA Respondents

JUDGEMENT

- (1.) Every legislation is a social document and judicial construction seeks to decipher the statutory mission, *(1) language permitting taking the cue from the rule in Heydon's case of suppressing the evil and advancing the remedy. The Drugs and Cosmetics Act, 1940 (the Act, for short) is a life-saving statute one of the provisions of which, together with a bunch of rules and forms, falls for interpretation and application to the substantially admitted facts set out concisely in the order granting certificate of fitness to appeal. The Bench projected the factual-legal issue in these words:- * (1) 3 Co. Ref.7a -Maxwell on the Interpretation of Statutes12th Edn. , p.40 "It is not in dispute that the petitioners have a wholesale dealers' licence to stock drugs at Bombay and have a further licence to distribute the drugs through the motor van throughout the territory of the State of Maharashtra. Accordingly, their motor van started filled with drugs and reached the Vidarbha area. The petitioners booked certain drugs for which they have already a licence to distribute, by lorry to Yeotmal. The idea was that the motor van, which was touring the Vidarbha area, should reach Yeotmal by about the time when the goods were due to arrive and the person in charge of the motor van would collected the drugs so booked from the lorry and distribute them as per instructions given by the firm. But unfortunately the motor van was delayed by about three days and one of the partners of the petitioner-firm who was moving with the van, went ahead of Yeotmal, released the goods from the transport operator and temporarily kept them in the godown of a local drugs dealer. The intention was to load the van with those drugs and distribute the drugs as permitted by the licence. In the appeal in this Court, these facts have been found as pleaded by the accused persons. However, it is held that the temporary deposit of the goods in the godown of a local drugs dealer amounts to stocking for sale as contemplated by clause (c) of Section 18 of the Drugs and Cosmetics Act, 1940. For the purpose of stocking the drugs, either for sale or for distribution, the accused persons had not licence for the premises at Yeotmal and this act amounted to a breach of the conditions of the licence and, as such, breach of Rule 62, amounting to an offence under Section 27 (b) of the Drugs and Cosmetics Act, 1940. The point, whether a temporary deposit of drugs or temporary retention of drugs in a place outside Bombay for which place the petitioners have no licence to stock the goods, amounts to stocking for sale or distribution, is a point of law which appears to us of general importance."
(2.) The appellant has been concurrently convicted but hopefully challenged S. 18(c) of the Act forbids manufacture for sale, or sell or stock or exhibit for sale, or distribute any drug without licence under this Chapter (Ch. IV), S. 27 (b) is the penal provision for contravention of the provisions of Ch. IV of the Act or the Rules made thereunder. Rule 62 is claimed to have been violated and so may be read here together with the sister rule, i.e. R. 61: "61. Forms of licences to sell drugs - (1) A licence to sell stock or exhibit for sale, or distribute drugs other than those specified in Schedules C and C (1) by retail, on restricted licence or by wholesale shall be issued in Form 20, 20-A or 20-B as the case may be: Provided that a licence in Form 20-A shall be valid for only such drugs as are specified in the licence; (2) A licence to sell stock or exhibit for sale, or distribute drugs specified in Schedules C and C (1) by retail, on restricted licence or by wholesale shall be issued in Form 21, 21-A or 21-B as the case may be: Provided that a licence in Form 21-A shall be valid for only such drugs as are specified in the licence. 62. Sale at more than one place - If drugs are sold or stocked for sale at more than one place, separate application shall be made, and a separate licence shall be issued, in respect of each such place: Provided that this shall not apply to itinerant vendors who have no specified place of business and who will be licensed to conduct business in a particular area within the jurisdiction of the licensing authority."
(3.) The appellant is a wholesale dealer and distributor and has a licence for his Bombay shop in Form 20-B and another in Form 21-B, one for drugs specified in C and C (1) Schedules and the other for other drugs (Exs. 37 and 38). The firm has one more licence issued under Rule 61 (2) in Form 21-B authorising it to sell, stock or exhibit for sale or distribute by wholesale on the premises situated at Through Station Wagon No. MHR 1279 in the State of Maharashtra, the following categories of drugs specified in Schedules C and C (1) to the Drug Rules, 1945:- Categories of drugs: for items of Schedule C (1) drugs not requiring Cold Storage. 2. This licence shall be in force for two years from the date of issue of this licence. 3. This licence is subject to the conditions stated below and to the Provisions of the Drugs Act, 1940 and the rules thereunder. The question is whether the act of the appellant in temporarily storing drugs, not for immediate sale there but intended for ultimate sale in various parts of the State, contrary to Section 18(c) and punishable under Section 27(b) Even if it is can Ex. 39 which permitted stocking and selling in the specified vehicle of the accused, cover the brief interval of storage between taking delivery from the railway or other public transport and loading into the appellant's mobile van ;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.