High CourtDivision BenchAppeals partly allowed; remand for re-sentencin...

RAJASTHAN PHARMACEUTICAL LABORATORY, BANGALORE AND TWO OTHERS v. STATE OF KARNATAKA

Case / Petition Number:Criminal Appeal Nos. 120/75 and 96/75
Neutral Citation:1981 SCR 604

Case Details & Bench

Court
High Court
Hon'ble Judges
  • R. S. Sarkaria
  • A. C. Gupta
Judgment Date
1981-01-14
Court Decision / Holding
Appeals partly allowed: set aside the extra imprisonment under Sec. 34(2) for the third appellant and set aside the conviction under Sec. 22(1)(c); remit to the High Court for re-sentencing on (i) the offence under Sec. 18(c) (punishable under Sec. 27(a)(ii)) for appellants 2 and 3, and (ii) the offence under Sec. 28 for all appellants; maintain the convictions on other counts; the High Court to determine appropriate sentences for these counts in light of the directions, and the writ petition 2929/80 is disposed accordingly; overall, the appeal is allowed in part.
Final Disposition
Appeals partly allowed; remand for re-sentencing and set-aside of certain convictions/sentences

Parties to the Case

Appellants / Petitioners

  • M/s Rajasthan Pharmaceutical Laboratory (First Appellant)
  • Second Appellant (Partner)
  • Third Appellant (Manager)
  • M/s Manoj Drug House (Appellant in Cr. A. 96/75)

Respondents

  • State of Karnataka

Legal Representation & Advocates

Counsels for Petitioners

  • • A. K. Sen
  • • S. K. Bisaria

Counsels for Respondents

  • • N. Nettar

Case Synopsis & Summary

This is a Supreme Court decision involving three appellants (two firms and their officer) charged under the Drugs and Cosmetics Act, 1940 for manufacturing, sale, and distribution of drugs not of standard quality and for contravention of prohibitory orders. The first appellant, M/s Rajasthan Pharmaceutical Laboratory, a firm, and the second (a partner) and third (a manager) appellants were charged in Cr. A. No. 120 of 1975; a related matter, Cr. A. No. 96 of 1975, involved Manoj Drug House and its officers. The trial court acquitted, but on State appeal the Karnataka High Court convicted the appellants on several sections: 18(c) (involving manufacture with or without license), 18(a)(i) (selling substandard drugs), 28 (penalty for non-disclosure of the manufacturer), and 18(a)(vi) (disposal contrary to prohibitory orders), with additional convictions under sections 34(2) and 22(1)(c) and multiplicitous punishments. The Supreme Court held the additional imprisonment on the third appellant under section 34(2) to be illegal and clarified the scope of vicarious liability under section 34, including the Explanation that a firm’s directors may be treated as guilty under sub-section (1) but not punished twice under sub-section (2). It remitted the matter to the High Court for proper sentencing (for 18(c) under 27(a)(ii) and for 28), while setting aside the improper 22(1)(c) conviction. The overall disposition was to allow the appeal in part.

Provisions of Law Cited

Drugs and Cosmetics Act, 1940: Sec. 18(c)Sec. 18(a)(i)Sec. 28Sec. 18(a)(vi)Sec. 22(1)(c)Rule 54A of the Rules framed under the ActSec. 27(a)(ii)Sec. 27(b)Sec. 34(1)Sec. 34(2)Sec. 18ASec. 19Sec. 3(f) (definition of ‘manufacture’)Sec. 34(2) (non-obstante clause)Sec. 22(1)(c) (prohibition and search)Rule 54A (prohibition of sale)

Legal Doctrines & Maxims

  • Vicarious liability of a firm/company under Sec. 34(1) and (2) of the Act
  • Interpretation of the words ‘punished accordingly’ in Sec. 34(2)
  • Non-obstante clause effect in Sec. 34(2)
  • Ignorance about the nature/substance/quality of an offence as non-defensive under Sec. 19(1) and its exceptions
  • Read together, Sec. 18–27 penalties cannot justify double punishment for the same offence
  • Meaning of ‘manufacture’ under Sec. 3(f) for packaging activities as manufacturing under the Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the High Court erred in awarding an additional imprisonment on the third appellant under Sec. 34(2) for the same offences. They contended that Sec. 27(a)(ii) requires a minimum imprisonment for offences under Sec. 18(c) and that, as a matter of policy, a firm cannot be imprisoned; the non-obstante clause in Sec. 34(2) does not authorize duplicative punishment. They stressed that Section 34(1) already deems certain individuals guilty for offences committed by the company, and Section 34(2) cannot be used to punish the same offence twice. They defended the convictions under Sec. 18(c), 18(a)(i), and 28, and challenged the higher fine under Sec. 28 as inappropriate; they argued that ignorance of the source of drugs by the partners cannot absolve liability in light of Sec. 19(1)-(3).

Contentions of Respondents

The State argued that Sec. 34(2) provides liability on directors/officers for offences committed with consent, connivance, or neglect, and that the court may impose the punishment appropriate to the offence; it contended that the directed sentences under Sec. 34(2) are valid for individuals, not only for the company as a whole, and that the High Court’s approach to conviction under Sec. 22(1)(c) and the related Rule 54A was appropriate.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
State of Maharashtra v. Joseph Anthony Pereira(1971) 73 B.L.R. 613OverruledThe decision is explicitly overruled by this Court; the judgment rejects the interpretation drawn in that case regarding ‘punished accordingly’ under Sec. 34(2).

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Extracted Judgment Text

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604 A RAJASTHAN PHARMACEUTICAL LABORATORY, BANGALORE AND TWO OTHERS _v._ STATE OF KARNATAKA _January_ 14, 1981 [R. S. SARKARIA AND A. C. GUPTA, JJJ p _Drugs and Cosn1etics Act,_ _1940-0.ffe;nce.s_ _under sec._ 18 (c), _(Sale without_ _lice1ice); under sec._ 18(a)(i), _(Selling sub·standard quality drugs); under sec._ 28 (non~di.sclosure _of_ _source_ _of purchase of drugs_ _exhibited_ _for_ _sale);_ _and_ _under_ _sec._ 18(a)(vi), _(disposing_ _of_ _drugs against prohibitory_ _orders)_ _under_ _sec._ 22(1)(c) _of_ _tile_ _Act and Rule 54A_ _of_ _the rules framed thereunder-Sentences_ _validity_ _of-Vicarious_ _liability_ _of_ _partners under sec._ 34 _of the_ _Act-Fine_ _ordered_ _in_ _excess_ _of_ _the statutory nzaximum under_ _sec._ _1SA_ _is_ _not_ _in_ _order-_ _Whcther the additional sentence_ _of_ _imprisonment on one_ _of_ _the_ _accused_ _for_ _the satne offence_ lras _illegal-Plea_ _of_ _ignorance about the sub-standard quality_ _woilld be a valid defence only as provided by sub-sec._ (2) _and_ (3) _of_ _sec._ 19 _of_ _the_ _Act--Sec._ 22(1)(c) _of_ _the_ _Act_ _does not provide for a separate punish-_ _ment_ _ill_ _c1ddition_ _to_ _sec._ _27(b)_ _of_ _the Act._ M/s. Rajasthan Pharmaceutical Laboratory, first appellant in Criminal Appeal No. 120 of 1975 is a firm of which the second appellant is a. partner and the third appellant is a manager. The first appellant holds a licence under the Drugs and Cosmetics Act, 1940 for re-packing of drugs mentioned in the E list \V'hich forms part of the licence and, therefore, is a manufa.cturer of the said drugs for the purposes of the Act in vie\V of the definition of the term "manufacture" occurring in sec. 3 (f) of the Act. The second and the third appellant are also a partner and a manager respectively of the first appellant, M/s. Manoi Drug House & others, in Criminal Appeal No. 96 of 1975. A search of the business premises in Criminal Appeal 120 of 1975 resulted F in seizure of sub-standard drug, "Sodium Bromide J.P." Batch No. 1 and in Criminal Appeal 96 of 1975 of a sub-standard drug "Liquid Paraffin I.P. 450 ml. Batch No. 1'. Be&ides the three appellants in these two appeals, another partner of these two firms figured as an accused in the compla-int but as be was absconding the trial could not proceed against him. In Criminal Appeal 120 of 1975 tho appellants were charged under sections 18(c), 18(a)(1) and 28 of the Drugs and Cosmetics Act, 1940 and in Criminal Appeal 96 of 1975 they were charged under sections 18(a)(i) a-nd 18(a)(ii). The appellants in both the appeals were acquitted by the trial court. But in appeals preferred by the State, the High Court in Criminal Appeal 120 of 1975, sentenced each of the three appellants to pay a fine of Rs. 2,000 on each of the counts in defa-ult appellants Nos. 2 and 3 were to undergo simple imprisonment for three months "for each non-payment of line". For the sa1ne offences the High Court further sentenced the third appellant "by virtue of sec. 34(2) of the Act to undergo simple imprisonment for three months on each ## ., RAJASTHAN PHARMACEUTICAL _V._ KARNATAKA 605 count and to pay a fine of _Rs._ 500 on each count and in default of payment to A simple imprisonment for one month for "each non~payment of fine". The substantive sentences passed on the third appellant were directed to run con .. currently. In Crimin•! Appeal 96 of 1975 the High Court convicted thel accused under sec. 18(a)(i) and sec. 18(a)(vi) and sentenced each of them to pay a fine of _Rs._ 1,000 on each count, the second and the third appellants were to undergo simple imprisopment for one month in default of payment. The I-Iigh Court further convicted them "for having committed the offence B punishable unde: sec. 22 (I)( c)" and sentenced "each one of the accused to pay a fine of Rs. 1000 for the ol!ence under sec. 22(1)(c)". Allowing both the appeals in part and remanding Criminal Appeal 120 of 1975 to the High Court for proper sentences, the Court HELD: (I) The additional sentence of imprisonment on the third appel- C lant for the same offence is illegal. But in sentencing the second and the third appellants to pay a fine only for the oficnce under sec. 18(c); the provi sions of sec. 27 (a) (ii) which make a sentence of imprisonment compulsory has been overlooked. [612B] (2) Sec. 27(a) (ii) of the Act makes a sentence of imprisonment of not less than one year compulsory for an offence under s. lS(c) in addition to D fine unless for special reasons a sentence of imprisonment for a lesser period was warranted. Of course, in the nature of things a company or a firm could not be sent to jail but that docs not apply _to_ the other two appellants in the instant case. [611E-F] (3) By virtue of sec. 34(1r of the Drugs and Cosmetics Act, the appellants 2 and 3 are accused to be guilty of the offences committed by the first appellant, as the explanation appended to sec. 34 makes its provisions apply to a E firm and its partners. [61 lA-B] (4) The non-obstante clause with which sub-sec. (2) of sec. 34 begins does not permit the court _to_ punish the offender twice for the same offence. It is plain that sec. 34(2) imposes a liability on those directors or officers· of the company 'vho are not directly in charge of the management of the company and as such could not be held guilty with the help of sub-section (I) of sec. F 34, if they were responsible for the commission of the offences by consent, connivance or neglect. It would be incongruous if a man found to be directly responsible for the commission of the offence could at the same time be held guilty cf contributing to the commission of the offence. by his consent, connivance or neglect. [611 B-C] There is nothing in the language of sec. 34 to warrant a construction, that G tlte words "punished accordingly" in clause (2) of sec. 34 of the Act mean that the persons 1nentioned therein can be punished only in the same way as a company would be punisha-ble, that is, only with a fine and not with a.ii imprisonment. The words "punished accordingly" in the context mean that a person deemed to be guilty of an offence committed by a company shall receive the punishment that is prescribed by the Act for that offence. [6110] H _The Stall_ _of_ _Maharashtra_ v. _Joseph Anthony Pereira,_ (1971) 73 B.L.R. 613, overruled. 6-152SCI/81 ###,, A B ##### c D E 606 SUPREME COURT REPORTS [1981] 2 S.C.R (6) For lhc contravention of provisions of sec. ! 8,.\, ~cc. 28 prescribed imprisonment for a term which may extend to one year or \vith fine which may extend to five hundred rupees or with both. Clearly therefore no fine· in excess of five hundred rupees ~ould be imposed for an offence under sec. 18A. The in1position of a fine of Rs. 2,000 for the offence unde1 -;cc. 18A which i"I punishable undeT sec. 28, in the instant case, is not in order. [61 JH] (7} 1·he plea Of ignorance of the nature, substance or quality of the drug in view of the fact that accuscJ got the supplies of these drugs from the firm Rajasthan Pha-ra1naceutical l.aboratory~ who are the packers. is not only not cove.red by sub-sec. (2) and (3) of sec. 19 which enumerate the cases in which the general rule contained in sub-sec. (1) would not app1y, but also factually incorrect because appellants 2 and 3 in Criminal Appeal 96 of 197 _5,_ are [1 ] respectively & partner and the manager of both the firm<;, Rajnsthau Pharmaceu .. tical Laboratory and Manoj Drug House. [613 F-H) (S) Sec. 22(l)(c) does not provide for a sepa1atc punishment. Rule 54A of the rules framed under the Drugs and Cosnh:tic-; A-:t prohibits con .. travention of the prohibitory order made under sec. 22(1) (c) and sec. 27(b) itself 1nakes such contravention punishable with imprisonn1ent or with fine or with both. [614 G-HJ CRIMINAL APPELLATE JURISDICTION : Criminal Appeal No. 120 of 1975. Appeal by special leave from the Judgment and Order dated 29-1-1975 of the Karnataka High Court in Criminal Appeal No. 274/74. AND Writ Petition No. 2929 of 1980. F (Under Article 32 of the Constitution). AND Criminal Appeal No. 96 of 1975. G Appeal by special leave from the Judgment and Order dated 13-9-1974 of the Ka.rnataka High Court in Criminal Appeal No. 168/74. _S._ _K._ _Bisaria_ for the appellant in Cr. A. No. 96/75. H _A._ _K._ _Sen_ and _S._ _K._ _Bistiria_ for the appellant in Cr. A. 120/75 and for the Petitioner in W.P. 2929/80. _N._ _Nettar_ for the respondent in 8ll. the maftei'S. RAJASTHAN PHARMACEUTICAL _v._ KARNATAKA _(Gupta,!.)_ 607 The Judgment of the Court was delivered by A _Criminal Appeal No._ 120 _of_ 1975 - GUPTA, J.-This is an appeal by special leave from a judgment of the Karnataka· High Court by which the High Court set aside the acquittal of the three appellants before us ordered by the Judicial Magistrate, 1st Class, (4th Court), Bangalore and convicted them of B various offences under the Drugs and Cosmetics Act, 1940 (hereinafter referred to as the Act). The first appellant M/s. Rajasthan Pharmaceutical Laboratory is a firm of which the second appellant is a partner and the third appellant is the Manager. The first appellant holds a ###### ., lirence under the Act for repacking of drugs mentioned in the list which forms pa.rt of the licence. For purposes of the Act the first C appellant is a manufacturer of the said drugs in view of the definition of the term 'manufacture' occurring in section 3 (f) of the Act which is as follows : "manufacture in relation to any drug or cosmetic includes any process or part of a process for making, altering, orna- D menting, finishing, packing, labelling, breaking up or otherwise treating or adopting any drug or cosmetic with a view to its sale and distribution but does not include the compounding or dispensing of any drug, or the packing of any drug or cosmetic in the ordinary course of retail business; and 'to manufacture' shall be construed accordingly;" E On February 27, I 970 on a search of the business premises of the first appellant, a Drug' Inspector seized 42 items of drugs from a room, 33 of which were net in the approved list of drugs appended to the licence issued to the first appellant. The third appellant who is the Manager of the firm and was present during the search failed to disclose the source from which these drugs had been acquired. To a notice issued ' under section 18A of the Act calling upon the first appellant to disclose .f-'· ·the source of acquisition of the drugs seized, the reply, signed by the third appellant on behalf of the firm, was a denial of the fact that the drugs were found iu their possession and that they were seized. Samples were taken from the seized drugs which were sent to the Government Analyst and from his report it was found that one of the drugs, Sodium Bromide I.P. Batch No. 1 was sub-standard. On th\' aforesaid facts the Drugs Inspector filed a complaint iu the court of the Judicial Magistrate, First Class (4th Court), Bangalore allegiHg that the appellants before us were guilty of having comruitted offences under sections f8{c), 18(a)(i) and 18A punishable respectively under 8ections 27(a}(ii), 27 (b) and 28 of the Act. Another partner of the firm also figured as an accused in the complaint but as he was absconding the trial could F G H 608 SUPREME COURT REPORTS [1981] 2 s.c.R. A not proceed against him. As already stated the magistrate acquitted !he appellants. On the facts on record the High Court found : B ###### c (a) 33 out of the 42 items of drugs seized from the business premises of the first appellant do not figure in the approved list of drugs which forms part of the licence issued to the. first appellant. These 33 items had been kept in the premises for sale without tbe requisite licence. This constitute~ an offence tinder section 18 ( c) of tbe Act for which all the appellants are punishable under section 27 (a) (ii). (b) Of the samples of the drugs seized and sent to the Government Analyst, one sample of Sodium Bromide I. P. Batch No. 1 was found to be sub-standard. An offence under section 18 (a) (i) has therefore been committed for which the appellants are punishable under section 27(b). (c) The appellants failed to disclose the source of acquisiti<ln D of the aforesaid 3 3 items of drugs which were not in the approved list. This constitutes an offence under section 18A which makes the appellan'h punishable under section 28 of the Act. _E_ F G For these offences the High Court sentenced each of the three appellants to pay a fine of Rs. 2000 on each of the counts, in default appellants nos. 2 and 3 were to undergo simple imprisonment for three months 'for each non-payment of fine'. For the same offences the High Court further sen!enced the third appellant "by virtue of section 34 (2)" of the ~ct to undergo simple imprisonment for three months on each count and to pay a fine of Rs. 500 on each count, in default of payment to simple imprisonment for one month for 'each non-payment of fine'. The substantive sentences passed on the third appellant were directed to run concurrently. The only contentiog raised before us by Mr. A. K. Se,n for the' appellants was that the additional sentence of imprisonment on the, thirq appellant for the same offences was illegal. Mr. Sen's contention is right. But in sentencing the second and the third appellants to pay a fine only for the offence under section 18(c), the High Court appears to have overlooked the provisions of section 27 (a) (ii) which makes a sentence of imprisonment compulsory. Chapter IV of the Act, h~ded "Manufacture, Sale and DistribuH tion of Drugs and Cosmetics" includes section 16 of section 33A. Section 18 provides inter alia : "no person shall himself or by any other person on his behalf : RAJASTHAN PHARMACEUTICAL _v._ KARNATAKA _(Gupta,_ _!.)_ 609 (a) Manufacture for sale, or sell, or stock or exhibit for sale, or distribute (i) any drug or cosmetic which is not of standard qnality: (b) x x x A B c D E G R ###### ' • ( c) manufacture for sale, or sell, or stock or exhibit for sale. or distribute any drug or cosmetic, except under, and in accord11nce with the conditions of, a licence issued .., ... x x x Section 18A in these terms : _"Disclosure_ _of_ _the_ _name_ _of manufacture:-_ Every person not being the manufacturer of a drug or cosmetic or his agent for the distribution thereof, shall, if so required, disclose to the Inspector the name, address and other particulars of the person from whom he acquired the drug or cosmetic." Section 27 which enumerates the penalties for illegal manufacture, sale, etc. of drugs reads "Whoever himself or by any other person on his behalf manufactures for sale, sells, stocks or exhibits for sale or distributes (a) any drug (i) x x x (ii) without a valid licence as required under clause (c) of section 18. shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to ten years and shall also be liable to fine : Provid\)d that the Court may, for any special reasons to be recorded in writing, inipose a sentence of imprisonment of less than one year; (b) any drug other than a drug referred to in clause (a) in contravention of any of the provisions of this Chapter or any rule made thereunder shall be punishable with imprisonment for a term which may extend to three years', or with fine or with both." 610 SUPREME COURT REPORTS (1981] 2 S.C.R A Section 28 provides for "penalty for non-disclosure of the name of the manufacturer etc." and states "Whoever contravenes the provisions of section 18A shall be punishable with imprisonment for a term wliich may extend to one year, or with fi.ne which may extend to five B hundred rupees, or with both." ##### _c_ D F G H In this case the offences mentioned above haJ been committed by the appellant firm which was engaged in the business of repacking of drugs. In view of the definition of the term 'manufacture' in section 3(f), packing amounted to manufacture in relation to the said drugs for the purposes of the Act. It is necessary to refer . to the provisions of section 34 of the Act which creates vicarious liability for an offence under the Act committed by a body corporate including a firm: "34. (1) Where an offence under this Act has been committed by a company every person who at the time the offence was committed, was in charge of, and was responsible to the company for tl:!e conduct of the business of the company, as well as the comp@y shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly : Provided that nothing contained in this sub section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised an due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (l), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director. manager. secretary or other officer of the company, such director. manager, secretary or other officer shall also be deemed to be guilty of that offence and shall he liable to be proceeded against and punished accordingly. Explanation.-For the purpose of this scetion (a) 'company' means a body corporate, and includes a firm or other association of individuals: and (b) 'director' in relation to a firm means a partner in the firm." # #####, ' _>_ ##### • RAJASTHAN PHARMACEUTICAL _v._ KARNATAKA _(Gupta,_ _J.)_ 611 The High Court held and rightly that "by virtue of section 34(1) of the Act, it will have to be held that both respondents 2 and 3 [present appellants _2_ and 3] are deemed to be guilty of these offences committed by respondent No. 1 [the first appellant in this Court]". In view of the explanation appended to section 34 its provisions will apply to a firm and its partners. But having found the third appellant guilty with the aid of sub-section (1) of section 34, the High Court appears to have misdirected itself in thinking that the non-obstante clause with which sub-section (2) of the section begins permitted the court to punish the appellant twice for the same offence. It is plain that section 34(2) imposes a liability on those directors or officers nf the company who were not directly in charge of the management o{ the company and as such could not be held guilty with the help nf sub-section ( 1) of section 34, ii they were responsible for the commission of the offence by consent, connivance or neglect. It would also be a little incongruous if a man found to be directly responsible for the commission of the offence could at the same time be held guilty of contributing to the commission of the offence by his consent, connivunce or neglect, The further punishment awarded to the third appellant with the aid of section 34(2) is therefore set aside. But this does not conclude the matter. The High Court imposed a fine of two thousand rupees on each of the three appellants for the offence under section 18(c). Section 27(a)(ii) makes a sentence of imprisonment of not less than one year compulsory for such offence in addition to fine unless for special reasons a sentence of imprisonment for a lesser period was warranted. Of course in the nature of thing' a company or a firm,oald not be sent to jail but that does not apply to the other two appellants. Mr. Sen referred to a decision of the Bombay High Court reported in ( 1971) 73 B.L.R. 613(') which holds that the words "punished accordingly" in clause (2) of section 34 of the Act mean that the persons mentioned therein can be punished only in the same way as a company would be punishable, that is, only with a fine and not with irnJ)risonment. We are unable to agree. There is nothing in the language of section 34 to warrant such a construction. It seems clear to us that the words "punished accordingly"' in the context mean that a person deemed to be guilty of an offence committed by a company shall receive the punishment that is prescribed by the Act for that offence. It appears that the High Court was also in error in imposing a fine of two thousand rupees for the offence under section 18A which is punishable under section 28. For the contravention of provisions of section 18A, section 28 prescribes imprisonment for a term which **(1)** _**State ofMal:arashtra**_ **v.** _**Joseph**_ _**Anthony Pereira**_ **A** **B** ###### **c** **D** **E** **F** **G** **H** 612 SUPREME COURT REPORTS (1981] 2 S.C.R. A may extend to one year or with fine which may extend to five hundred rupees or with both. Clearly therefore no fine in excess of five hundred rupees could be imposed for an offence under section 18A. ' In the result, while maintaining the conviction of the appellants, we remit the case to the High Court; the High Court will consider B again on the findings already recorded the question of sentence--(a) for the offence under section 18(c) punishable under section 27(a) (ii) so far as appellants 2 and 3 are concerned, and (b) for the offence punishable under section 28 of which all the three appellants have been fonnd guilty,-and pass appropriate sentences. The appeal is allowed to the extent and in the manner indicated above. #### c _Writ_ _Petition_ _No._ 2929 _of_ 1980 ·u E F G H The writ petition questions the validity of the order of the High Court punishing the third appellant in the above appeal (Criminal appeal No. 120 of 1975) twice for the same offences with the aid of section 34(2) of the Act. In view of our decision in the appeal no order is necessary on the writ petition. _Criminal_ _Appeal No._ 96 _of_ 1975 By the judgment impugned in this appeal which is also by special leave, the Kamataka High Court set aside an order of acquittal passed by the Judicial Magistrate, Isl Class (1st Court), Bangalore City and convicted the appellants before us for having committed offences under section 18(a)(i) and 18(a)(vi) of the Drugs and Cosmetics Act, 1940 (hereinafter referred to as the Act). Of the three appellants in this appeal the second and the third amiellants are the same persons as in the other appeal. The second appellant is a partner and the third is the manager of the first appellant, a firm called M/s. Manoj Drug House. The absconding partner of the other firm is also a iParlner of the first appellant here. The firm possessed valid licence to sell, stock and exhibit for sale drugs. The magistrate before whom the appellants were tried for the aforesaid offences acquitted them; the High Conrt on appeal set aside the order of acquittal as already stated. The facts found by the High Court in this case are as follows. On July 17, 1970 the Assistant Drug Controller for the State of Mysore who had been appointed as Inspector under section 21 of the Act took samples of "Liquid Paraffin J.P." Batch I, and "Formaline I.P." Batch 1 which, as the labels on these drugs showed, had been repacked by M/s. Rajasthan Pharmaceutical Laboratory, the first appellant in the other case. The Inspector sent the samples to the ' ' RAJASTHAN PHARMACEUTICAL _v._ KARNATAKA _(Gupta,_ J.) 613 Government Analyst and the report received from him showed that the products were not of standard quality. On September 9, 1970 the Drugs Inspector, Bangalore Division, found that the firm M/s . Manoj Drug House was exhibiting for sale stocks of the drugs which the Governm.ent Analyst had declared as not of standard quality. He therefore issued an order under section 22(1) (c) of the Act prohibiting the sale of the said drugs for a certain period which was extended from time to time. On October 28, 1970 the Inspector asked the third appellant who was the Manager of the firm to produce the stock of the prohibited drugs. The Insipector seized the stock produced before him but this was found to be short by 57 bottles of Liquid Paraffin I.P. 450 ml. Batch No. 1. On these facts a complaint was filed in the court of the City Magistrate, Bangalore alleging that the appellants were guilty of an offence under section 18(a) (i) of the Act for having in their stock and exhibiting for sale drugs not of standard quality and further that they were guilty of an offence under section 18 ( 11) (vi) for dispos;ing of the aforesaid 'Ruantities of Liquid Paraffin I.P. Batch No. 1 in spite of the prohibitory order under section 22(1) (c) thus contravening rule 54A of the Rules framed under the Act. Both these offences are punishable under section 27 (b) of the Act. The trial court acquitted the accused but on appeal preferred by the State of Kamataka the High Court set aside the order of acquittal and convicted the accused under section 18 (a)( i) and section 18 (a)( vi), and sentenced each of the accused to pay a fine of Rs. 1000/- on each count : the second and the third appellants were to undergo simple imprisonment for one month in default of payment. We see no reason to interfere with the findings of fact recorded by the High Court. The only point argued before us on behalf of the appellants which was also urged in the High Court was that they got the supplies of these drugs from the firm Rajasthan Pharmaceutical Laboratory who were the packers and the appellants did not know that the drugs were sub-standard. The High Court rightly pointed out that this did not constitute a valid defence in view of section 19(1) of the Act which is as follows. "19. Pleas.-(!) Save as hereinafter provided in this Section, it shall be no defence in a prosecution under this Chapter to prove merely that the accused was ignorant of the nature, substance or quality of the drug or cosmetic in respect of which the offence has been committed or of the circumstances **A** **B** ##### **c** **D** E F G of its manufacture or import, or that a purchaser, having **B** bought only for the purpose of test or analysis, has not been prejudiced by the sale." A B ##### c D E F 614 SUPREME COURT REPORTS ll981] 2 S.C.R. The High Court fouud that the case of the accused was not covered by su.b-sections (2) and (3) of section 19 which enumerate the cases in which the general rule contained in sub-section (1) would not apply. In this connection it is to be noted that appellants Nos. 2 and 3 are respectively a partner and the manager of both the firms, Rajasthan Pharmaceutical Lahoratory, and Manoj Drug House. This appeal therefore must fail. Tt appears however that the High Court having convicted the appellants as aforesaid and sentenced them under section 27 (b) of the Act further convicted them "for having committed the offence punishable under sec. 22 ( l) ( c)" and sentenced "each one of the accused to pay a fine of Rs. 1,000/- (Rupees One thousand) for the offence under Sec. 22(1) (c)". Section 22(1) deals with the powers of Inspectors, clause (c) of which states that an Inspector mcl\ within the local limits of the area for which he is appointed. "enter and search at all reasonable times, with such assistants. if any, as he considers necessary, any place in which he has reason to believe that an offence under this Chapter has hecn or is being committed and order in writing the person in possession of any drug or cosmetic in respect of which the offence has been or is being committed, not to dispose of any stock of such drug or cosmetic for a specified period not exceeding twenty days, or unless the alleged offence is such that the defect may be removed by the possessor of the drug or cosmetic seize the stock of such drug or cosmetic." Rule 54A of the Rules framed under the Act pro, ides: "54A. _Prohibition_ _of_ _sale.-No_ person in poscssion of a drug in respect of which an Inspector has made an order under clause ( c) of sub-section (I) of Section 22 of the Act shall in contravention of that order sell or otherwise dispose of any stock of such drug.", _-...(__ ### • ###### ._,/· Rule 54A prohibits contravention of a prohibitory order made under section 22(1) (c) and section 27(b) itself makes such conG travention punishable with imprisonment or with fine or with both. Section 22 ( 1) ( c) does not provide for a separate punishment. Accordingly; we set aside the conviction of the appellants purported to be under section 22(1) (c) of the Act and the sentences passed in respect of the said 'offence'. H Subject to the modification indicated above the appeal is dismissed. S.R. _Appeals partly allowed._