M/S KOSIK PHARMA AND SURGICAL DISTRIBUTORS vs THE ASSISTANT DRUGS CONTROLLER 2
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:59453
WP No. 31895 of 2026
CNR: KAHC010697762026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 27 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE C.M. POONACHA
WRIT PETITION NO. 31895 OF 2026 (GM-RES)
BETWEEN:
M/S. KOSIK PHARMA AND
SURGICAL DISTRIBUTORS
REGISTERED UNDER THE DRUGS
AND COSMETICS ACT, 1940 AND
THE RULES MADE THEREUNDER REGISTERED
SHOP AT CTS NO.4305, SHOP NO.2,
GR FL, VIBHAV APARTMENT,
NEAR OLD INCOME TAX OFFICE,
VIDYANAGAR, HUBLI - 580 021.
REPRESENTED BY ITS PROPRIETOR
MRS.PARVATHI MOUNESH PATIL @ MALLAVVA
W/O. MR.MOUNESH PATIL,
AGED ABOUT 27 YEARS.
…PETITIONER
(BY SRI. ABHISHEK H, ADVOCATE FOR
SRI. PRASANNA KUMAR B.T, ADVOCATE)
AND:
1.
THE ASSISTANT DRUGS CONTROLLER 2
AND LICENSING AUTHORITY,
DEPARTMENT OF FOOD SAFETY AND DRUGS
ADMINISTRATION OFFICE AT SR NO.25A,
PLAT NO.392B, OPP. FIRE STATION RESIDENTIAL
APARTMENTS, TAJANAGARA MAIN ROAD,
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EKATHANAGARA UNAKAL POST,
HUBBALLI - 580 031.
2. THE COMMISSIONER,
DEPARTMENT OF FOOD SAFETY
AND DRUGS ADMINISTRATION,
GOVERNMENT OF KARNATAKA,
BENGALURU - 560 001.
3.
THE PRINCIPAL SECRETARY,
HEALTH AND FAMILY WELFARE DEPARTMENT,
GOVERNMENT OF KARNATAKA,
VIKASA SOUDHA, BENGALURU - 560 001.
…RESPONDENTS
(BY SRI. SHIVAREDDY, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TQUASHING THE
IMPUGNED ORDER DATED 30.09.2026 BEARING REF. NO.
2026-27/930, PASSED BY RESPONDENT NO.1, PRODUCED AT
ANNEXURE-D, WHEREBY THE DRUG LICENCES BEARING NOS.
KA/HB2/20B/222721 AND KA/HB2/218-222722 OF THE
PETITIONER HAVE BEEN CANCELLED WITH IMMEDIATE EFFECT
AND UNTIL FURTHER ORDERS, AS BEING ARBITRARY,
ILLEGAL, CONTRARY TO THE PRINCIPLES OF NATURAL JUSTICE
AND VIOLATIVE OF ARTICLES 14 AND 19(1)(G) OF THE
CONSTITUTION OF INDIA AND ETC.,
THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
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WP No. 31895 of 2026
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CORAM: HON'BLE MR. JUSTICE C.M. POONACHA
ORAL ORDER
The present writ petition is filed seeking the following
reliefs:
"a) Issue a writ of Certiorari or any other appropriate
writ, order or direction, quashing the impugned order
No. /
dated 30.09.2026 bearing Ref.
ಆಸುಔಆ ಾ"ಉಔ$
/ . . - / /
ಹು ಸ ಔ $&ಾ 2 'ೈ 2026-27, passed by Respondent No.1, *
produced at ANNEXURE-D, whereby the Drug Licences
bearing Nos. KA/HB2/20B/222721 and KA/HB2/21B-
222722 of the Petitioner have been cancelled with
immediate effect and until further orders, as being
arbitrary, illegal, contrary to the principles of natural
justice and volatile of Articles 14 and 19(1)(g) of the
Constitution of India;
b) consequently, issue a writ of Mandamus or any other
appropriate writ, order or direction, directing the
Respondents to restore/revive the Drug Licences of the
Petitioner covered under ANNEXURE-A and permit the
Petitioner to carry on its lawful business of purchase,
stocking and distribution of pharmaceutical products, in
accordance with law;
c) direct Respondent No.3 to consider and dispose of the
Appeal dated 05.10.2026, produced at ANNEXURE-E,
preferred by the Petitioner against the impugned order
dated 30.09.2026, in accordance with law and after
affording the Petitioner a reasonable opportunity of
personal hearing;
d) Grant such other relief or reliefs as this Hon'ble Court
may deem fit and proper in the facts and circumstances
of the case, in the interest of justice and equity."
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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2. The Registry has raised an objection that the
petitioner carries out business at Hubballi and hence, the writ
petition is to be presented before the Dharwad Bench of this
Court.
3. It is the contention of the learned counsel for the
petitioner that being aggrieved by the impugned cancellation
Order dated 30.09.2026 (Annexure-D to the writ petition), an
appeal was preferred under sub-Rule (2) of Rule 66 of the
1
Drugs and Cosmetic Rules, 1945 before the third respondent -
Appellate Authority, which is situated at Bengaluru. The same
not having been entertained, the petitioner is before this Court.
4. The petitioner is the distributor of pharmaceutical
products. The petitioner has been issued with a Show Cause
notice dated 04.09.2026 (Annexure - B to the writ petition),
which is issued under Rule 66(1) of the Rules. The allegation
against the petitioner is that it dealt with "Zavicefta injection" -
Batch No.23K03976, which is stated to be spurious. The
petitioner has filed reply to the said notice on 10.09.2026
1
Hereinafter referred to as 'Rules'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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(Annexure-C to the writ petition). The first respondent vide the
impugned order dated 30.09.2026 (Annexure - D to the writ
petition) has cancelled the license granted in favour of the
petitioner. Being aggrieved, the petitioner has preferred an
appeal under sub-Rule (2) of Rule 66 of the Rules before the
Principal Secretary to Government, Health and Family Welfare
Department - Appellate Authority. In the said appeal, the
petitioner has sought for an interim prayer. The same has not
been favourably considered, the present writ petition is filed. At
this juncture it is relevant to notice Rules 66 of the rules which
reads as under:
"66. Cancellation and suspension of licenses.
(1)The licensing authority may, after giving the licensee
an opportunity to show cause why such an order should
not be passed by an order in writing stating the reasons
therefore, cancel a license issued under this Part or
suspend it for such period as he thinks fit, either wholly
or in respect of some of the substances to which it
relates, if in his opinion, the licensee has failed to comply
with any of the conditions of the license or with any
provisions of the Act or rules there under:
Provided that, where such failure or contravention is the
consequence of an act or omission on the part of an
agent or employee, the license shall not be canceled or
suspended if the licensee proves to the satisfaction of
the licensing authority-
(a)that the act or omission was not instigated or
connived at by him or, if the licensee is a firm or
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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company, by a partner of the firm or a director of the
company, or
(b)that he or his agent or employee had not been
guilty of any similar act or omission within twelve
months before the date on which the act or omission in
question took place, or where his agent or employee had
been guilty of any such act or omission, the licensee had
not or could not reasonably have had knowledge of that
previous act or omission, or
(c)if the act or omission was a continuing act or
omission, he had not or could not reasonably have had
knowledge of that previous act or omission, or
(d)that he had used due diligence to ensure that
the conditions of the license or the provisions of the Act
or the rules thereunder were observed.
(2) A licensee whose license has been suspended or
canceled may, within three months of the date of order
under sub-rule (1), prefer an appeal against that order
to the State Government, which shall decide the same."
5. The factual matrix in terms of the allegation against
the petitioner is not required to be gone into in the present
petition, inasmuch as vide the impugned notice cum order, the
licence of the petitioner has also been suspended.
6. A plain reading of sub-Rule (1) of Rule 66 of the
Rules clearly indicates that the petitioner is entitled to be given
a show cause notice before an order of either suspension or
cancellation is passed.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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7. It is further pertinent to note that Rule 66 of the
Rules enables the authority to either suspend or cancel the
license, wholly or part. The aspect of the matter also requires
to be considered in the appeal filed by the petitioner.
8. Having regard to the fact that the appeal of the
petitioner is pending before the appellate authority, it is
expedient that the impugned cancellation order dated
30.09.2026 (Annexure-D to the writ petition) be stayed until
consideration of the appeal of the petitioner. However, it is
further expedient to direct that the petitioner not be permitted
to carry out business with respect to the product, which is
alleged to be spurious. Accordingly, until consideration of the
appeal of the petitioner before the appellate authority,
impugned cancellation order dated 30.09.2026 shall remain
stayed.
9. During pendency of the appeal, the petitioner shall
be permitted to carry on business in terms of the license
granted in his favour. However, the petitioner shall not be
permitted to carry on business in "Zavicefta injection".
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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10. The contentions of the parties and the merits of the
matter are kept open to be decided in the appeal filed by the
petitioner.
11. This order shall not preclude the concerned
authorities from taking further steps/measures in accordance
with law.
12. The petition is disposed of in the aforementioned
terms.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
(C.M. POONACHA)
JUDGE
JY
List No.: 1 Sl No.: 39