Case Note & Summary
The case involved a prosecution against a firm and its managing partner and pharmacist for charging excess prices for medicines in violation of the Drugs (Price Control) Order, 1979. The trial court convicted the respondents, imposing fines and imprisonment. However, the Kerala High Court acquitted them, ruling that the medicines in question were not 'formulations' as defined in the Order. The Supreme Court examined the definitions of 'bulk drug' and 'formulation' under the Order, concluding that the High Court had misconstrued these definitions. The court clarified that a 'bulk drug' can be used as an ingredient in a formulation and that the provisions of the Order apply to all formulations, including those not specified in the Third Schedule. Despite this, the Supreme Court did not restore the trial court's conviction, considering the peculiar facts of the case and the time elapsed since the alleged offence. The court emphasized the importance of correct interpretation of the Order for future guidance, ultimately rejecting the High Court's construction but not interfering with the acquittal of the respondents.
Headnote
A) Drugs Law - Definition of Formulation - Interpretation of 'formulation' under the Drugs (Price Control) Order, 1979 - The definition of 'formulation' is broad and includes even one bulk drug treated as a medicine. The court held that the High Court misconstrued the provisions of the Order, and allegations, if proved, would amount to contravention punishable under Section 7 of the Essential Commodities Act, 1955. (Paras 69-72)
Issue of Consideration
Whether the High Court correctly construed the provisions of the Drugs (Price Control) Order, 1979 regarding the definitions of 'bulk drug' and 'formulation'.
Final Decision
The Supreme Court partly allowed the appeal, clarifying the definitions under the Drugs (Price Control) Order, 1979, but did not restore the conviction of the respondents.
Law Points
- Drugs (Price Control) Order
- 1979
- Essential Commodities Act
- 1955
- definition of bulk drug
- definition of formulation
- contravention of price control provisions
- maintainability of prosecution
