Supreme Court Upholds Conviction of Appellant in Drugs and Cosmetics Act Case for Stocking Misbranded Drug Without Licence. Stocking for Sale Under Sections 18(a), 18(c), and 27(a) of Drugs and Cosmetics Act, 1940 Includes Keeping or Carrying a Drug on Person When Intended for Sale, as Evidenced by Possession of 95,000 Sedative Capsules.

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Case Note & Summary

This criminal appeal before the Supreme Court of India arose from a conviction under the Drugs and Cosmetics Act, 1940 for stocking for sale a misbranded drug without a valid licence. The appellant, SK. Amir, was apprehended by a railway constable at the gate of Malkapur railway station on March 19, 1966, immediately after obtaining delivery of a parcel from the railway authorities. The parcel contained 95,000 capsules of Seco Barbital Sodium, a sedative agent commonly used for intoxication and popularly called 'Lal pari'. He was charged under sections 18(a)(ii) and 18(c) read with sections 27(a)(ii) and 27(b) of the Act. The trial court, Judicial Magistrate First Class, Malkapur, rejected the appellant's defence that he had taken delivery on behalf of one Mohamod Jamadar believing the parcel contained a 'science apparatus' for a school, convicted him, and imposed a fine of Rs 1200. On appeal, the Sessions Judge, Buldana acquitted the appellant, holding that the mere fact that the appellant was carrying the parcel would not justify the inference that the drug was stocked for sale. The State appealed to the Bombay High Court (Nagpur Bench), which set aside the acquittal, concluded that the prosecution had proved conclusively that the accused had stocked the drug for sale, and imposed the minimum sentence of one year's imprisonment prescribed by the Act. The appellant then appealed by special leave to the Supreme Court. The core legal issue before the Supreme Court was whether carrying the drug on one's person could amount to 'stocking for sale' under sections 18(a), 18(c) and 27(a) of the Drugs and Cosmetics Act, 1940, or whether 'stocking' required storage in a particular place. The appellant argued that at the highest the drug was found on his person, which was not enough to establish stocking. The State contended that possession of 95,000 capsules of a sedative proved that the drug was kept or carried for sale. The Court interpreted the word 'stock' in its plain meaning as 'to keep' and held that the injunction of the law meant only that no person shall keep for sale a misbranded drug or a drug in respect of which a valid licence was not held. It was not necessary that the drug be stored in a place; if anyone kept or carried a drug on his person in contravention of the Act and it was proved that the drug was kept or carried for sale, the act fell within the mischief of the law. The Court observed that mobile hawkers displaying their wares on their person were undoubtedly stocking for sale, and that what was intended for sale could as much be stocked on one's person as in a shop or in a godown. Keeping for sale was the essence of the matter, not the mode and manner of keeping; to keep for sale was to stock for sale. Referring to Dharam Deo Gupta v. State, AIR 1958 All 865, the Court distinguished that case because there mere stocking without purpose of sale did not amount to an offence, whereas in the present case the huge quantity of 95,000 capsules left no doubt that the drug was kept for sale and could not have been meant for personal use. The defence that the parcel was received on behalf of another person without knowledge of its contents was rightly rejected. Accordingly, the Supreme Court dismissed the appeal and confirmed the order of conviction and sentence.

Headnote

A) Statutory Interpretation - Meaning of 'Stock' - Section 18(a)(ii), 18(c), 27(a) Drugs and Cosmetics Act, 1940 - The word 'stock' in these provisions does not have a technical sense but means 'to keep'; keeping for sale is the essence and not the mode or manner of keeping - The appellant was found carrying 95,000 capsules of Seco Barbital Sodium without a valid licence; court held that carrying on person can amount to stocking for sale if proved that drug is kept or carried for sale. Held that the appeal is dismissed and conviction confirmed.

B) Criminal Law - Sentencing - Section 27(a) Drugs and Cosmetics Act, 1940 - Minimum sentence of one year imprisonment for stocking misbranded drug without valid licence - The High Court had imposed the minimum sentence of one year; Supreme Court confirmed the order of conviction and sentence. Held that the possession of a large quantity of sedative capsules established intent to sell.

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Issue of Consideration

Whether carrying a drug on one's person can amount to 'stocking for sale' under sections 18(a)(ii), 18(c) and 27(a) of the Drugs and Cosmetics Act, 1940.

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Final Decision

Appeal dismissed. The Supreme Court confirmed the order of conviction and sentence; the appellant was convicted under sections 18(a)(ii) and 18(c) read with sections 27(a)(ii) and 27(b) of the Drugs and Cosmetics Act, 1940 and sentenced to the minimum one year's imprisonment prescribed by the Act.

Law Points

  • The word 'stock' in sections 18(a)
  • 18(c) and 27(a) of the Drugs and Cosmetics Act
  • 1940 means 'to keep'
  • keeping for sale is stock for sale
  • not necessary to store in place
  • can be kept or carried on person
  • large quantity of drug indicates intent to sell
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Case Details

1974 LawText (SC) (01) 31

Criminal Appeal No. 149 of 1971

1974-01-09

Y.V. Chandrachud, M. Hameedullah Beg

1974 AIR 469, 1974 SCR (3) 84, 1974 SCC (4) 210

U. P. Singh, Santokh Singh, S. B. Wad, M. N. Shroff

SK. Amir

The State of Maharashtra

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Nature of Litigation

Criminal appeal against conviction under sections 18(a)(ii) and 18(c) read with sections 27(a)(ii) and 27(b) of the Drugs and Cosmetics Act, 1940 for stocking for sale a misbranded drug without a valid licence.

Remedy Sought

Appellant sought to have his conviction and one-year minimum sentence set aside, contending that carrying the drug on his person did not amount to 'stocking for sale'.

Filing Reason

The appellant was convicted by the trial court, acquitted by the Sessions Judge, and then convicted by the High Court; aggrieved by the High Court's judgment, he appealed by special leave to the Supreme Court.

Previous Decisions

Judicial Magistrate First Class, Malkapur convicted the appellant and imposed a fine of Rs 1200; Sessions Judge, Buldana acquitted him on the ground that mere carrying of the parcel did not justify an inference that the drug was stocked for sale; Bombay High Court (Nagpur Bench) set aside the acquittal, held that the prosecution proved stocking for sale, and sentenced the appellant to the minimum one year's imprisonment.

Issues

Whether the appellant had 'stocked for sale' a misbranded drug under sections 18(a)(ii) and 18(c) read with sections 27(a)(ii) and 27(b) of the Drugs and Cosmetics Act, 1940, when the drug was found being carried on his person at a railway station. Whether the word 'stock' in the Drugs and Cosmetics Act, 1940 requires storage in a place or includes keeping or carrying on one's person for sale.

Submissions/Arguments

Appellant argued that the drug was found on his person and at the highest that did not establish that he had 'stocked' the drug; he claimed he took delivery on behalf of someone else and did not know the contents. State/respondent argued that possession of 95,000 capsules of sedative commonly used for intoxication proved that the drug was kept or carried for sale and therefore fell within the mischief of sections 18(a), 18(c) and 27(a) of the Act.

Ratio Decidendi

The word 'stock' in sections 18(a), 18(c) and 27(a) of the Drugs and Cosmetics Act, 1940 is used in its plain meaning 'to keep'. Keeping for sale is the essence of the matter, not the mode and manner of keeping; to keep for sale is to stock for sale. It is not necessary that the drug be stored in a place; keeping or carrying on one's person, when intended for sale, falls within the prohibition. Possession of 95,000 capsules of a sedative drug showed that it was kept for sale, not for personal use.

Judgment Excerpts

The plain meaning of the word 'stock' in these provisions of the Act is 'to keep' and the injunction of the law means no more than this that no person shall keep for sale a misbranded drug or a drug in respect of which a valid licence is not held. What is intended for sale can as much be stocked on one's person as in a shop or in a godown. Keeping for sale is of the essence of the matter, not the mode and the manner of keeping. To keep for sale is to stock for sale. The large quantity of 95,000 capsules found in the possession of the appellant leaves no doubt that he had stocked or kept the drug for sale.

Procedural History

The appellant was apprehended on March 19, 1966 at Malkapur railway station with 95,000 capsules of Seco Barbital Sodium. He was tried by Judicial Magistrate First Class, Malkapur, convicted under sections 18(a)(ii) and 18(c) read with sections 27(a)(ii) and 27(b) of the Drugs and Cosmetics Act, 1940, and fined Rs 1200. On appeal, Sessions Judge, Buldana acquitted him on the ground that mere carrying did not prove stocking for sale. On further appeal by the State, the Bombay High Court (Nagpur Bench) set aside the acquittal, held that the prosecution proved stocking for sale, and sentenced the appellant to one year's minimum imprisonment. The appellant then appealed by special leave to the Supreme Court, which dismissed the appeal and confirmed the conviction and sentence.

Acts & Sections

  • Drugs and Cosmetics Act, 1940: 3(b)(i), 17(e), 18(a)(ii), 18(c), 27(a), 27(a)(ii), 27(b)
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