Case Note & Summary
The petitioner, M/s. Lifeline Medical & General Stores Chemist and Drugs, through its proprietor Mustafa Hanif Sirkhot, filed a writ petition under Article 227 of the Constitution of India challenging two orders: (1) the order dated 30/07/2018 passed by the Assistant Commissioner (Medicine) & Licensing Authority, Food and Drug Administration, Pen, Raigad, cancelling the petitioner's drug license under Rule 66(1) and Rule 67(h)(1) of the Drugs and Cosmetics Rules, 1945; and (2) the order dated 29/06/2022 passed by the Minister of Foods and Drugs Administration in Appeal No. 435 of 2018, which partly allowed the appeal and suspended the license for 90 days (from 09/01/2023 to 08/04/2023) instead of cancellation. The petitioner contended that the show cause notice dated 18/07/2018 was never served on him, and the Licensing Authority failed to provide any proof of service. The court examined the record and found that the Licensing Authority's order itself stated that the notice was sent by registered post but no acknowledgment was produced. The court held that the failure to serve the show cause notice violated principles of natural justice, rendering the entire proceedings void. Consequently, the court quashed both the cancellation order and the suspension order, and directed that the petitioner's license be restored. The court also noted that the Minister's order was based on the same defective proceedings and could not be sustained.
Headnote
A) Administrative Law - Natural Justice - Show Cause Notice - Service of Notice - The court held that the show cause notice dated 18/07/2018 was not served on the petitioner, and the Licensing Authority failed to prove service, thus the subsequent cancellation order and suspension order were vitiated for violating principles of natural justice. (Paras 5-8) B) Drugs and Cosmetics Act, 1940 - License Suspension - Rule 66(1) and Rule 67(h)(1) - The court found that the Licensing Authority's order dated 30/07/2018 cancelling the license and the Minister's order dated 29/06/2022 suspending the license for 90 days were based on an unserved show cause notice, and quashed both orders, restoring the license. (Paras 5-8)
Issue of Consideration
Whether the impugned order suspending the petitioner's drug license for 90 days was passed in violation of principles of natural justice due to non-service of show cause notice.
Final Decision
The court allowed the writ petition, quashed the show cause notice dated 18/07/2018, the cancellation order dated 30/07/2018, and the Minister's order dated 29/06/2022, and directed restoration of the petitioner's license.
Law Points
- Natural Justice
- Show Cause Notice
- Service of Notice
- License Suspension
- Drugs and Cosmetics Act
- 1940
