M/S MEDPHARMA MEDICAL AND GENERAL STORES DISTRIBUTOR vs THE STATE OF KARNATAKA
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:58035
WP No. 32030 of 2026
CNR: KAHC010700422026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 14 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE C.M. POONACHA
WRIT PETITION NO. 32030 OF 2026 (GM-RES)
BETWEEN:
M/S MEDPHARMA MEDICAL AND
GENERAL STORES (DISTRIBUTOR),
REPT. BY ITS AUTHORISED SIGNATORY/PART
SRI.SHARANABASAVA,
S/O.SHEKARAPPA AGED ABOUT 40 YEARS,
R/A K.NO.3551/11, 1ST FLOOR, MALNAD SQUARE,
DODDAKAMMANAHALLI, BENGALURU 560 083.
PETITIONER
(BY SRI. SARAVANA S.,ADVOCATE)
AND:
1. THE STATE OF KARNATAKA
BY ITS PRINCIPAL SECRETARY, HEALTH AND FAMILY
WELFARE DEPARTMENT,
GOVERNMENT OF KARNATAKA, VIKAS SOUDHA,
BENGALURU 560 001.
2.
THE COMMISSIONER,
DEPARTMENT OF FOOD SAFETY AND DRUGS
ADMINISTRATION, GOVERNMENT OF KARNATAKA,
BENGALURU 560 001.
3. THE ASSISTANT DRUGS CONTROLLER AND
LICENSING AUTHORITY,
BENGALURU (CIRCLE)-6, DEPARTMENT OF FOOD
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SAFETY AND DRUGS ADMINISTRATION, PALACE
ROAD, BENGALURU 560 001.
RESPONDENTS
(BY SRI. RAHUL CARIAPPA. K.S., AGA)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO-A) ISSUE A WRIT
OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER
OR DIRECTION, QUASHING THE ORDER IMPUGNED
DATED.18.09.2026, BEARING REF. NO. OUNIE /SAOUNIE/BEM
VRU-6/ NOTICE/155/2026-27, PASSED BY RESPONDENT NO.3,
WHEREBY THE PETITIONERS DRUG LICENSES BEARING NOS.
KA-B62-210076, KA-B62-210078 AND KA-B62-210077 HAVE
BEEN SUSPENDED (PRODUCED AS ANNX-E) AND ETC,.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE C.M. POONACHA
ORAL ORDER
The present writ petition is filed seeking for the following
reliefs:
"a) Issue a writ of certiorari or any other appropriate
writ, order or direction, quashing the order
impugned dated.18.09.2026, bearing
Ref.No.OUNIE/SAOUNIE/BEM.VRU-
6/Notice/155/2026-27, passed by respondent no.3,
whereby the petitioners drug licenses bearing nos.
KA-B62-210076, KA-B62-210078 and KA-B62-
210077 have been suspended (produced as
Annexure-E);
b) Issue a writ of mandamus directing the
respondents to restore/reinstate the petitioners drug
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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WP No. 32030 of 2026
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licenses bearing Nos. KA-B62-210076, KA-B62-
210078 and KA-B62-210077 in terms of Annexure-A
and permit the petitioner to carry on its licensed
wholesale pharmaceutical business in accordance
with law;
c) Pass such other writ, order or direction as this
Hon'ble Court deems fit and proper in the facts and
circumstances of the case in the interest of justice
and equity."
2. The petitioner is an authorized distributor of
pharmaceutical products and has been issued a notice dated
15.09.2026 (Annexure-D to the writ petition). It is forthcoming
that, the said notice is issued under Rule 66(1) the Drugs And
1
Cosmetics Rules, 1945 .
3. It is the contention of the petitioner that although,
seven days time was given vide the said notice dated
15.09.2026, after laps of three days i.e., on 18.09.2026 an
order has been passed (Annexure-E to the writ petition)
suspending the license of the petitioner which is impugned in
the present writ petition.
4. It is forthcoming that in the said order it is alleged
that the petitioner was dealing with "Emblaveo 1.5 mg Injection
Batch No.NE1021AA", which was suspected to be spurious.
1
Hereinafter referred to as 'Rules'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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WP No. 32030 of 2026
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5. In this context, it is pertinent to notice Rule 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
therefor, 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 thereunder:
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
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.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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(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."
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.
7. In this context, it is permitted to notice that
although the petitioner has been notified of the allegation for
furnishing the reply, the impugned order dated 18.09.2026
(Annexure-E to the writ petition) has been passed, wherein the
license of the petitioner has been suspended.
8. It is forthcoming from a perusal of Sub-rule (1) of
Rule 66 of the Rules that the licensing authority is entitled to
pass an order either suspending a license either wholly or in
part after giving the licensee an opportunity to show cause.
Further, a remedy of an appeal is available to the petitioner
under Sub-rule (2) of Rule 66 of the Rules vide the impugned
order dated 18.09.2026.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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9. Although, the allegation against the petitioner is
with regard to dealing of a specific drug / medicine which is
suspected to be spurious, the entire license of the petitioner
has been suspended, which is ex-facie unsustainable law.
10. In view of the aforementioned, the petitioner shall
be permitted to file his reply to the notice dated 15.09.2026
(Annexure-D to the writ petition) on or before 19.10.2026,
consequent to which the concerned authorities shall pass
appropriate orders keeping in mind the scope and ambit of
Sub-rule (1) of Rule 66 of the Rules.
11. The impugned order dated 18.09.2026 (Annexure-E
to the writ petition) is hereby quashed.
12. Till the appropriate orders are passed by the
concerned authorities on the show cause notice dated
15.09.2026 (Annexure-D to the writ petition), the petitioner
shall be entitled to carry on business in terms of the license
granted to it except dealing with "Emblaveo Injection".
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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WP No. 32030 of 2026
CNR: KAHC010700422026
13. All rights and contentions of the parties in the
merits of the matter are kept open.
14. The writ petition is allowed-in-part in the
aforementioned terms.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
(C.M. POONACHA)
JUDGE
PNV
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