Case Note & Summary
The dispute concerned criminal liability for possession of Ayurvedic medicinal preparations with high alcohol content under the Bombay Prohibition Act, 1949. The appellant, proprietor of a drug store, was convicted under Section 66(1)(b) for possessing bottles of Mahadrakshasava and Dashmoolarishta seized during a police raid. The central issue was whether these preparations, containing 52.3% and 54.5% alcohol by volume respectively, were exempt from prohibition as medicinal preparations unfit for use as intoxicating liquor under Section 24A, subject to compliance with Section 59A. On September 14, 1960, the Station House Officer, Wani, raided Anil Medical Stores and seized 12 bottles of Mahadrakshasava and 88 bottles of Dashmoolarishta, both Ayurvedic preparations manufactured under licences issued under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955. The preparations had been purchased from Sharda Medical Stores, which sourced them from licensed manufacturers. The trial Magistrate convicted the appellant under Section 66(1)(b), sentencing him to three months' rigorous imprisonment and a fine of Rs. 500. The Court of Session, Yeotmal, affirmed the conviction, and the High Court of Bombay (Nagpur Bench) confirmed the conviction while modifying the sentence. The Supreme Court considered whether the Ayurvedic preparations containing alcohol produced by distillation fell outside the exemption under Section 24A because they did not correspond to Section 59A limitations. Specifically, the proviso to Section 59A capped alcohol generated by fermentation at 12% by volume. The lower courts held the preparations were fermented and exceeded that limit, thus losing exemption. The second issue was whether possession of the preparations, which were deemed unfit for use as intoxicating liquor under Section 6A(7) at the time of seizure, became retrospectively illegal after the State declared them fit under Section 6A(6) in October 1960. The appellant argued that the preparations were medicinal and unfit for use as intoxicating liquor, and because alcohol was added by distillation, not fermentation, the 12% proviso did not apply, and no evidence showed excess alcohol beyond what was necessary for extraction, solution, and preservation. The State contended that even if the preparations corresponded to Section 59A, their high alcohol content rendered them fit for use as intoxicating liquor, and the later declaration of fitness under Section 6A(6) made the possession unlawful. The Court found that the lower courts misread the evidence; the prosecution evidence and concessions showed the preparations were distilled, not fermented. Therefore, the proviso to Section 59A was inapplicable, and the State failed to prove non-compliance with the first paragraph of Section 59A. Moreover, since the preparations were manufactured under licences under the Medicinal and Toilet Preparations (Excise Duties) Act and issued from bonded warehouses, it was reasonable to infer compliance. On the second issue, Section 6A(7) deemed such preparations unfit for use as intoxicating liquor until the State declared otherwise. Since at the time of seizure no such declaration existed, possession was not an offence. A subsequent declaration under Section 6A(6) could not operate retrospectively to criminalize innocent possession. The Court distinguished The State of Bombay v. Narandas Mangild Agarwal and relied on The State of Bombay v. F. N. Balsara. The Supreme Court allowed the appeal, set aside the conviction and sentence, and held the appellant was wrongly convicted. The judgment favored the accused.
Headnote
A) Criminal Law - Bombay Prohibition Act, 1949 - Section 24A and Section 59A - Exemption for Medicinal Preparations - Prov to Section 59A only applies when alcohol generated by fermentation; not applicable to distillation - Lower courts erroneously held preparations were fermented despite evidence they were distilled Ayurvedic products; 12% volume limit did not apply; no evidence of excess alcohol under first paragraph; Held conviction based on misapprehension of evidence and must be set aside. (Paras not mentioned) B) Criminal Law - Bombay Prohibition Act, 1949 - Section 6A(6) and 6A(7) - Deemed Unfit Status and Retrospective Operation - Articles seized in September 1960 deemed unfit for use as intoxicating liquor under Section 6A(7); subsequent declaration of fitness under Section 6A(6) in October 1960 could not criminalize prior innocent possession; Held retrospective application impermissible. (Paras not mentioned)
Issue of Consideration
Whether Ayurvedic medicinal preparations containing alcohol produced by distillation and exceeding 12% alcohol by volume were exempt from prohibition under Section 24A read with Section 59A; whether possession of such preparations was an offence when they were deemed unfit for use as intoxicating liquor under Section 6A(7) at the time of seizure, and whether a subsequent declaration under Section 6A(6) could operate retrospectively.
Final Decision
The Supreme Court allowed the appeal, set aside the conviction and sentence, and held that the appellant was wrongly convicted. The Court found that the preparations were distilled, not fermented, so the proviso to Section 59A did not apply; and because they were deemed unfit under Section 6A(7) at the time of seizure, possession was not an offence, and a subsequent declaration under Section 6A(6) could not have retrospective operation.
Law Points
- Exemption under Section 24A applies only if preparation corresponds with Section 59A limitations
- proviso to Section 59A only applies to alcohol generated by fermentation not distillation
- Section 6A(7) deems preparations unfit for use as intoxicating liquor until State declares otherwise
- subsequent declaration under Section 6A(6) cannot have retrospective operation



