M/S PATEL MEDICALS vs THE ASSISTANT DRUGS CONTROLLER - 3(P)

Court
Karnataka High Court

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HC-KAR
NC: 2026:KHC:58647
WP No. 30948 of 2026


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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

TH
DATED THIS THE 15 DAY OF OCTOBER, 2026

BEFORE

THE HON'BLE MR. JUSTICE C.M. POONACHA

WRIT PETITION NO. 30948 OF 2026 (GM-RES)

BETWEEN:

1. M/S PATEL MEDICALS
REGISTERED UNDER THE DRUGS AND
COSMETICS ACT, 1940 AND THE
RULES MADE THEREUNDER HAVING ITS
OFFICE AT NO.22/40, GF,
14TH CROSS, 18TH MAIN,
PADMANABHANAGAR,
CHIKKALASANDRA MAIN ROAD,
BENGALURU 560070,
REPRESENTED BY ITS PROPRIETOR,
MR. TULASARAM,
AGED ABOUT 41 YEARS,
S/O. SRI. DEDARAM,

…PETITIONER
(BY MS. S.M. ASHA, ADVOCATE FOR
SRI. PRASANNA KUMAR B T.,ADVOCATE)

AND:

1. THE ASSISTANT DRUGS CONTROLLER - 3(P)
BENGALURU CIRCLE-4, OFFICE
OF THE ASSISTANT DRUGS CONTROLLER-1,
ADC-1, BENGALURU CIRCLE-4,
1ST FLOOR, ANNEX BUILDING-I,
PALACE ROAD, BENGALURU - 560001.

2. THE COMMISSIONER,

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DEPARTMENT OF FOOD SAFETY AND DRUGS
ADMINISTRATION, GOVERNMENT
OF KARNATAKA, BENGALURU 560001.

3. THE PRINCIPAL SECRETARY,
HEALTH AND FAMILY WELFARE DEPARTMENT,
GOVERNMENT OF KARNATAKA,
VIKASA SOUDHA,
BENGALURU 560001.

…RESPONDENTS
(BY SRI. RAHUL CARIAPPA K S, AGA)

THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASHING THE
IMPUGNED ORDER DATED 19.09.2026, PASSED BY
RESPONDENT NO.1, WHEREBY THE PETITIONER'S WHOLESALE
DRUG LICENCES BEARING NOS. KA-B841-120949 AND KA-
841-120950 HAVE BEEN CANCELLED, PRODUCED AS
ANNEXURE-F DTD 19.09.2026.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING
IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:

CORAM: HON'BLE MR. JUSTICE C.M. POONACHA

ORAL ORDER

1. The present petition is filed seeking for the following
reliefs:

"a) Issue a writ of certiorari, or any other appropriate
writ, order or direction, quashing the impugned order
dated 19.09.2026, bearing Ref.
No . , passed by
¸ÀA:C¸ÀÄOD/¸Ë¤/¨ÉA.ªÀÈvÀÛ-4/201/26-27
Respondent No.1, whereby the Petitioner's wholesale
Drug Licences bearing Nos. KA-B41-120949 and KA-
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA

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B41-120950 have been cancelled, produced as
ANNEXURE-F dated 19/9/26;
b) ISSUE A WRIT OF MANDAMUS directing the
Respondents to restore/reinstate/reactivate the
Petitioner's Drug Licences bearing Nos. KA-B41-120949
and KA-B41-120950 and permit the Petitioner to carry
on its licensed wholesale pharmaceutical business in
accordance with law;
c) In the alternative, remand the matter to Respondent
No.1 for fresh consideration after providing the
Petitioner an effective opportunity of hearing,
considering the Petitioner's reply dated 18.09.2026 and
all supporting documents, and thereafter passing a
fresh reasoned order in accordance with law;
d) Direct the Respondents, pending such fresh
consideration, not to interfere with the Petitioner's
lawful pharmaceutical business, subject to such
reasonable conditions as this Hon'ble Court may deem
fit;

e) Pass such other order or orders as this Hon'ble Court
may deem fit in the facts and circumstances of the case,
in the interest of justice and equity. "


2. The petitioner is a licensed retail dealer of pharmaceutical
products and has been issued with the impugned show cause
notice dated 17.09.2026 (Annexure - B to the writ petition),
consequent to which the impugned order dated 19.09.2026
(Annexure- F to the writ petition) has been passed whereunder
the license of the petitioner has been cancelled. The notice
dated 17.09.2026 has been issued under Rule 66(1) of the
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA

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1
Drugs and Cosmetics Rules, 1945 . The allegation against the
petitioner is that it has dealt with 'Zavicefta injection' which is
alleged to be spurious.

3. In this context, it is relevant to note Rule 66 of the Rules,
which reads as under:
66. Cancellation and suspension of
licences. - (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 licence 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 licence 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
licence shall not be cancelled 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

1
Hereinafter referred to as 'Rules'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA

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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 licence or the
provisions of the Act or the Rules thereunder
were observed.
(2) A licensee whose licence has been suspended or
cancelled 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."


4. 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.

5. It is the contended by the learned counsel for the
petitioner that although seven days time was granted under
notice dated 17.09.2026 for the petitioner to respond to the
same within two days i.e., on 19.09.2026, the license of the
petitioner has been cancelled. The action of the respondent for
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA

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canceling the license of the petitioner ex-facie unsustainable in
law.

6. It is further relevant to note that by virtue of sub-rule (1)
of Rule 66 of the Rules, the license of the petitioner could be
suspended or cancelled either in whole or part. The said aspect
of the matter is also required to be taken into account by the
concerned authorities.

7. Accordingly, the impugned order dated 19.09.2026 issued
by respondent No.1 - Assistant Drugs Controller - 1 and
Licensing Authority is hereby quashed.

8. The petitioner shall be permitted to file reply to the show
cause notice dated 17.09.2026 (Annexure - B to the writ
petition) in addition to the reply dated 18.09.2026, (Annexure -
C to the writ petition) shall be permitted to file an additional
reply, if any, on or before 29.10.2026. Consequent to reply of
the petitioner, the concerned authority shall afford an
opportunity of hearing to the petitioner and take further steps
in accordance with law.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA

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9. Until consideration of the matter by respondent No.1, the
petitioner shall be permitted to carry of its business in terms of
the licence except dealing with 'Zavicefta injection'.

10. All contentions of the parties in the merits of the matter
are kept open.

11. Writ petition is partly allowed in the aforesaid terms.



Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA

(C.M. POONACHA)
JUDGE

BS
List No.: 1 Sl No.: 58