Bombay High Court Quashes Suspension of Drug License for Violation of Natural Justice - Licensee Not Given Opportunity of Hearing Before Suspension Under Drugs and Cosmetics Act, 1940.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Durgaprasad S/o Madanlal Suwarnakar, proprietor of M/s Durga Medicals, a drug store in Jalgaon, challenged the order dated 25th July 2012 passed by the Licensing Authority and Assistant Commissioner, Food and Drugs Administration, Jalgaon, suspending his drug license. The petitioner contended that the suspension order was passed without any prior notice or opportunity of hearing, violating principles of natural justice. The court noted that the order was passed under Section 22(1)(d) of the Drugs and Cosmetics Act, 1940 and Rule 65(9) of the Drugs and Cosmetics Rules, 1945. The court held that the suspension was illegal as no hearing was afforded. The court set aside the suspension order and directed the Licensing Authority to hear the petitioner and pass a fresh order within four weeks. The writ petition was allowed with no order as to costs.

Headnote

A) Administrative Law - Natural Justice - Audi Alteram Partem - Suspension of License - Drugs and Cosmetics Act, 1940, Section 22(1)(d) and Drugs and Cosmetics Rules, 1945, Rule 65(9) - The petitioner's drug license was suspended by the Licensing Authority without any prior notice or opportunity of hearing. The court held that the suspension order was passed in violation of principles of natural justice as the petitioner was not heard before the adverse order. The court set aside the suspension and directed the authority to hear the petitioner before passing any final order. (Paras 1-5)

B) Drugs and Cosmetics Law - Suspension of License - Requirement of Hearing - Drugs and Cosmetics Act, 1940, Section 22(1)(d) - The court observed that even if the authority had power to suspend a license, it must comply with natural justice. The order of suspension was quashed and the matter remitted for fresh consideration after hearing the petitioner. (Paras 4-5)

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Issue of Consideration

Whether the suspension of a drug license without granting an opportunity of hearing to the licensee is valid in law.

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Final Decision

The writ petition is allowed. The impugned order dated 25th July 2012 is quashed and set aside. The matter is remitted to the Licensing Authority to hear the petitioner and pass a fresh order within four weeks. Rule is made absolute. No order as to costs.

Law Points

  • Natural justice
  • audi alteram partem
  • suspension of license
  • opportunity of hearing
  • Drugs and Cosmetics Act
  • 1940
  • Section 22(1)(d)
  • Drugs and Cosmetics Rules
  • 1945
  • Rule 65(9)
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Case Details

2013 LawText (BOM) (01) 16

Writ Petition No. 10395 of 2012

2013-01-03

Sunil P. Deshmukh

Shri V.D. Salunke for Petitioner, Shri K.G. Patil, A.G.P. for Respondent/State

Durgaprasad S/o Madanlal Suwarnakar

The State of Maharashtra, The Licensing Authority and Assistant Commissioner Food and Drugs Administration (MS) Jalgaon, The State Minister for Food and Medicine Administration Maharashtra State

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Nature of Litigation

Writ petition challenging suspension of drug license without hearing.

Remedy Sought

Petitioner sought quashing of suspension order dated 25th July 2012 and restoration of license.

Filing Reason

License suspended without prior notice or opportunity of hearing.

Previous Decisions

Order dated 25th July 2012 passed by Licensing Authority suspending license.

Issues

Whether suspension of drug license without hearing violates natural justice.

Submissions/Arguments

Petitioner argued that no opportunity of hearing was given before suspension. Respondent/State argued that the order was passed under statutory powers.

Ratio Decidendi

Suspension of a license without affording an opportunity of hearing to the licensee is violative of principles of natural justice and cannot be sustained.

Judgment Excerpts

The petitioner takes exception to the manner in which the order in Appeal preferred against the order dated 25th July, 2012 passed by the Licensing Authority... The order of suspension is passed without giving any opportunity of hearing to the petitioner. The order of suspension is quashed and set aside.

Procedural History

The petitioner filed a writ petition in the High Court challenging the suspension order dated 25th July 2012. The court heard the matter at the admission stage with consent and disposed of the petition.

Acts & Sections

  • Drugs and Cosmetics Act, 1940: Section 22(1)(d)
  • Drugs and Cosmetics Rules, 1945: Rule 65(9)
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High Court Bombay High Court Quashes Suspension of Drug License for Violation of Natural Justice - Licensee Not Given Opportunity of Hearing Before Suspension Under Drugs and Cosmetics Act, 1940.
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