- (1.) MESSRS Shambhu Nath and Sons, Limited, and Firm Sri Ram Ganga Ram of Amritsar carry on the business of chemists and druggists. In the course of business these concerns have to deal in dangerous drugs as defined in the Dangerous Drugs Act, 1930. Under the Act no person can carry on business in such dangerous drugs without a license. These licenses are of various types and arc renewable year to year on payment or the prescribed license fee. These two concerns have admittedly been getting licenses in Forms DD5 and DD6 since a long time to enable them to possess and sell dangerous drugs. These two concerns along with others applied for renewal of their licenses in Forms DD5 and DD6 for the year 1956-57. The Excise and Taxation Commissioner, Punjab, issued a list on 21st March, 1956 containing the names of the concerns whose licenses had been renewed. This list did not contain the names of the petitioning concerns and they have filed in this Court separate writ applications Nos. 371 of 1957, and 416 of 1957 challenging the validity of the rules which authorise and empower the excise and Taxation Commissioner to grant or refuse these licenses. As the point involved in these two writ petitions is the same, it will be convenient to decide both these petitions by this judgment.
(2.) THE petitioners' case is that the rules framed under Section 8 (2) of the Dangerous Drugs Act so far as they relate to refusal and renewal of licenses violate the petitioners' fundamental rights guaranteed under Article 19 (1) (g) of the Constitution.
(3.) NOW, the Dangerous Drugs Act has been enacted to suppress contraband traffic in and abuse of dangerous drugs and to control certain operations relating to them. Section 8, so far as it is relevant for the present purpose, reads : --' (1) No one shall - " (a) import or export inter-provincially,. transport, possess or sell any manufactured drug, other than prepared opium, or coca leaf, or (b) manufacture medicinal opium or any preparation containing morphine diacetyl-morphin or cocaine, save in accordance with rules made under Sub-section (2) and with the conditions of any license for that purpose which he may be required to obtain under those rules. (2) The provincial Government may, make rules permitting and regulating - (a) the inter-provindal import and export into and from the territories under its administration, the transport, possession and sale of manufactured drugs, other than prepared opium, and of coca leaf; and (b) the manufacture of medicinal opium or of any preparation containing morphine, diacetylmorphinc or cocaine from materials which the maker is lawfully entitled to possess. *** (3) * * * *" Rules made under Section 8 (2) provide for the issue of licenses in various forms including forms DD5 and DD6 which are issued subject to conditions detailed in Rule 28. 7 and Rule 28. 8 respectively. A person holding a DD5 license is authorised to sell for medicinal purposes only to any adult person the following drugs - (1) medicinal hemp (2) medicinal opium (3) preparations containing medicinal hemp or medicinal opium. The holder of DD6 license is authorised to sell the following drugs - (i) coca derivatives, (ii) morphine, (iii) diacetyl-morphine, (iv) all preparations containing more than 0. 2 per cent of morphia or containing diacetyl-mor-phine to the undermentioned persons, referred to in E. 27. 19 of the Punjab manufactured Drugs Rules, 1932, in such quantities as they are entitled to possess the drugs - (1) a medical practitioner, (2) licensed chemist, (3 medical practitioners in managing or supervising charge of a hospital or dispensary who have the necessary permission of the Collector under Rule 27. 21 and (4) any person holding the prescription of a medical practitioner. There are other stringent conditions attached to these licenses to safeguard against abuse of the rights given by the licenses, but it is not necessary to describe them in this judgment. The roles tinder Section 8 (2) also provide the procedure which must be observed for grant, refusal or revocation of licenses. Rule 27. 24 authorises an officer empowered by the Financial commissioner to grant to any person a druggist's license in Form DD5 permitting him to manufacture articles mentioned in Rule 28. 7. Rule 27. 24 (b) similarly provides for grant of a chemist's license in Form DD6 permitting manufacture and preparation of the items mentioned in rule 28. 8. Rule 27,30 reads : -- "27. 30 (1) Any officer empowered under any of these rules to grant a license, permit r pass thereunder, may in his discretion either grant the license, permit or pass (as the case may be)applied for, or by an order in writing refuse to grant such a license, permit or pass. (2) A person whose application for any license, permit or pass has been refused shall not be entitled to be informed of the reasons upon which such refusal is based. " Rule 27. 34 provides an appeal from the order of the Excise Officer, or of the Collector or of the commissioner. Under Rule 27. 36 the Financial Commissioner or a Collector may revise any order passed by any Excise Officer subordinate to him.;