Full Judgment Text
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PETITIONER:
ISHWAR SINGH BINDRA & ORS.
Vs.
RESPONDENT:
THE STATE OF U.P.
DATE OF JUDGMENT:
02/05/1968
BENCH:
GROVER, A.N.
BENCH:
GROVER, A.N.
HIDAYATULLAH, M. (CJ)
VAIDYIALINGAM, C.A.
CITATION:
1968 AIR 1450 1969 SCR (1) 219
CITATOR INFO :
RF 1986 SC1162 (5)
ACT:
Drugs Act, 1940 s. 3(b)(i)-Definition of ’drug-Scope of-
Medicines and substances used or prepared for use in
accordance with Ayurvedic or Unani systems-When excluded.
HEADNOTE:
The Inspector of Drugs, Agra Region, filed a complaint in
July 1963 be, fore a Magistrate at Mathura alleging a
preparation called anti-phlogistic plaster was manufactured
and sold by a firm of which the first two -appellants were
partners and the third appellant was the Manager; the label
on the plaster showed the constituents to be three drugs
which are to be found in pharmacopoeias prescribed under the
Drugs Act, 1940 but did not bear a manufacturing licence
number and other particulars required to be given under r.
96 of the Drug Rules, 1945. As the drug fell within the
mischief of s. 17(e) of the Act, it must be deemed to be
’misbranded’. Moreover the label of the plaster showed that
it was -a Unani preparation which was apparently a false and
misleading claim. Accordingly,- it was alleged that
offences had been committed under s. 18(a)(ii) read with ss.
27(a) and (b) of the Act for selling a misbranded drug as
per s. 17(f) and s. 17(e) respectively of the Act and under
s. 18(b) lead with s. 27(b) of the Act for selling the same
drug which had been manufactured without a licence required
for the purpose under the Act.
The appellants filed a petition under s. 561A of the
Criminal Procedure Code in the High Court in March 1964 and
claimed inter alia that the plaster was not a drug as
defined in the Act and praying that the entire proceedings
pursuant to the complaint be quashed. It was contended that
in the definition. of a drug in s. 3 (b) (i) of the Act in
the expression "other than medicines and substances
exclusively used or prepared for use in accordance with the
Ayurvedic or Unarni Systems of medicine’ the adverb
"exclusively" governed the word "use’ only and did not
govern the words "prepared for use". The High Court was of
the view that the intention of the legislature appeared to
be to exclude from the definition of drug such medicines and
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substances which were used exclusively in accordance with
the Ayurvedic or Unani system of medicine or which were
prepared for use exclusively in accordance with the
aforesaid system; but it declined to go into the disputed
questions of fact as to whether the plasters in question
fell within the exception as this was required to be
determined on expert evidence
On appeal to this Court by certificate,
HELD: dismissing the appeal :
The expression "substances" in the definition of drug
contained in s. 3(b) means something other than
"medicines". The word "and" used in the definition of drug
in s. 3(b)(i) between "medicines" and "substances" is to be
read disjunctively. [225 F--G]
The scheme of cl. (i) of s. 3(b) is to take in all medicines
substances with the exception of such medicines or
substances which are
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exclusively used or prepared for use in accordance with the
Ayurvedic or Unani system of medicines. The exception made
in the case of the latter class of medicines or substances
was essentially meant to cover only such medicines or
substances which were used in the Ayurvedic or Unani system
or were prepared for use in accordance with those systems.
[226 A-B]
Medicines or substances have to be taken as a whole and in
the present cases it would have to be decided by the trial
court whether the plasters in question are medicines which
are exclusively used or which have been prepared for use
exclusively in accordance with the Ayurvedic or Unani system
of medicine. The High Court was right in its view that the
adverb "exclusively" must be taken to govern the words
"used" as well as "prepared for use"; but each individual
ingredient or component of the preparation in question will
not be the decisive or determining factor and what the court
will have to decide after recording such evidence as may be
Produced will be whether the plasters satisfy the above
test. If they fulfill that test they would be excluded from
the definition of drug as contained in s. 3 (b) (i). [226 E-
G]
Chimanlal Jagjivandas Sheth v. State of Maharashtra, [1963]
Supp. 1 S.C.R. 344; Stroud’s Judicial Dictionary 3rd Ed.
135 and Maxwell on Interpretation of Statutes, 11th Ed.
referred to.
JUDGMENT:
CRIMINAL APPELLATE JURISDICTION : Criminal Appeals Nos. 190
and 191 of 1965.
Appeals from the judgment and order, dated July 20, 1965 of
the Allababad High Court in Criminal Mis. Cases Nos. 562
and 563 of 1964.
Bishan Narain and Harbans Singh, for the appellants.
G. N. Dikshit and O. P. Rana, for the respondents.
The Judgment of the Court was delivered by
Grover, J.-These are two companion appeals by certificates
from the judgment of the High Court of Judicature at
Allahabad dismissing two petitions under s. 561A of the
Criminal Procedure Code in which the sole question raised
related to the true and correct interpretation of s. 3 (b)
(i) of the Drugs Act 1940. as it stood before the
enforcement of the Drugs (Amendment) Act 1962 (Act XXI of
1962) and the Drugs and Cosmetics (Amendment) Act 1964 (Act
XIII of 1964).
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As the point involved is common to both the appeals the
facts in Cr. Appeal No. 190 of 1965 may be shortly stated.
The first two appellants are the partners and the third
appellant is the manager of Bindra’s Chemical Corporation
which carries on the manufacture of medicines and substances
in accordance with the Ayurvedic and Unani systems of
medicines at Delhi, Shahdara. The Inspector of Drugs, Agra
Region, filed a complaint dated July 2, 1963 in the court of
Magistrate, First Class, at. Mathura alleging inter alia
that on September 20, 1962 when he was carrying out the
inspection of the shop of M/s Frontier Gupta Medical Stores,
Mathura, he came across a preparation
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called Antiphlogistic Plaster.manufactured by the aforesaid
Corporation. On examining the label it was discovered that
although the name of three drugs i.e. Glycerine, Kaolin and
Boric, Acid which are to be found in Pharmacopoeias
prescribed under the Act were mentioned as constituent,, of
the plaster, the label did not bear manufacturing Licence
Number and other particulars with which a drug was required
to be labelled in accordance with Rule-96 of the Drug Rules
1945. According to the Inspector this drug fell within the
mischief of s. 17 (e) of the Act and was to be deemed to be
misbranded as it had not been labelled in the prescribed
manner. Moreover the label of the plaster in question
showed that it was a Unani preparation which was apparently
a false and misleading claim. A sample was sent to the
Government Analyst who gave a certificate dated October 25,
1962 to the effect that it contained Glycerine, Kaolin and
Boric Acid and that Glycerine and Boric Acid were
pharmacopoeal drugs which were not exclusively Ayurvedic or
Unani medicines. According to the Inspector, the
Antiphlogistic Plaster was a misbranded drug as per s. 17(e)
& (f) of the Act. It was alleged that offences had been
committed under s. 18 (a) (ii) read with ss. 27 (a) and (b)
of the Act for selling Antiphlogistic Plaster, a drug
"misbranded" as per S. 17(f) and s. 17(e) respectively of
the Act and under S. 18 (b) read with S. 27 (b) of the Act
for selling the same drug which had been manufactured
without a licence required for the purpose under the Act, to
M/s Frontier Gupta Medical Stores, Mathura.
On March 24, 1964 the appellants filed a petition under S.
561A of the Code in the High Court raising a number of
points including the question of the jurisdiction of the
Court at Mathura to entertain the complaint as also that the
Antiphlogistic Piaster was not a drug as defined in the Act
and praying that the entire proceedings pursuant to the
complaint be quashed. In *he affidavit accompanying the
petition it was stated that the ingredients used in the
preparation of Bindra’s Antiphlogistic Plaster were in
accordance with the. Unani system of medicine. These
ingredients were (i) Glycerine, (ii) Kaolin i.e. Gule Armani
or Chikaimati, (iii) Bora i.e. Boric, (iv) Oil of Winter
green i.e. Java, (v) Oil of Eucalyptus, and Safeda. It was
asserted that all the six components were medicines
recognised under the Unani system and merely because one of
the components was used in the Allopathic system also the
medicine would not become a drug when the whole preparation
itself was an Ayurvedic medicine. Reference was made to
certain books like Ramooz-UI-Taba, Kitabul Davaiya and
Kantz-UI-Taba which were well known books of the Unani
system of medicine in which Glycerine and Boric were
recognised as medicines used in that system. The other
components of the plaster were, it is stated, of Unani
origin and frequently used for preparations in accordance
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with Ayurve-
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dic and Unani system. The Inspector of Drugs filed a
counter affidavit in which it was pointed out that
Glycerine, Kaolin and Boric Acid were drugs which were to be
found in the British Pharmaceutical Codex 1958. The
"monographs" of Glycerine, heavy Kaolin, light Kaolin and
Boric Acid containing the formulae according to which these
drugs were prepared were given. It was also alleged that
Bindra’s Antiphlogistic Plaster had been prepared in
accordance with the Allopathic system of medicine since its
composition resulted in a preparation known as Kaolin
Poultice given at page 359 of the British Pharmaceutical
Codex 1958. Glycerine, Boric Acid, Kaolin and oil of winter
green Methyl Salicylate were the main components of Bindra’s
Antiphlogistic Plaster and those were medicines which were
not exclusively used in accordance with either the Ayurvedic
or the Unani system of medicine. In the further affidavit
filed by the appellants it was maintained that Glycerine and
Kaolin and Boric Acid were being used in the Unani system in
the same way as many other things such as Honey, Rosewater,
Boric or Sohaga, Sulphur i.e. Gandhak, Arsenic i.e.,
Sankhia, Alum i.e. Phtkari which were mentioned in the
British Pharmaceutical Codes but it did not follow that they
could not be used in a preparation made according to the
Ayurvedic system. It was pointed out that the medicine
known as Kaolin Poultice was entirely different from
Bindra’s Antiphlogistic Plaster.
The definition of "drug" contained in s. 3 (b) is in the
following terms :-
(i) all medicines for internal or external
use of human beings or animals and all
substances intended to be used for or (in the
diagnosis, treatment), mitigation or
prevention of disease in human beings or
animals other than medicines and substances
exclusively used or prepared for use in
accordance with Ayurvedic or Unani systems of
medicine.
(ii) such substances (other than food)
intended to affect the structure or any
function of the human body or intended to be
used for the destruction of vermin or insects
which cause disease in human beings or
animals, as may specified from time to time by
the Central Government by notification in the
Official Gazette."
The contention of the appellants before the High Court was
that in the last part of cl. (1) the adverb "exclusively"
governed the word "used" only and did not govern the words
"prepared or use". The other argument raised was that the
legislature intended to except from the definition of drug
medicines and sub-
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stances which were, common to Ayurvedic or Unani system of
medicine and other systems. The High Court was of the view
that the intention of the legislature appeared to be to
exclude from the definition of drug such medicines and
substances which were used exclusively in accordance with
the Ayurvedic or Unani system of medicine or which were
prepared for use exclusively in accordance with the
aforesaid system. In other words it was held that the
adverb "exclusively" governed "use" as well as " prepared
for use". The High Court declined to go into the disputed
questions of fact as to whether Bindra’s Antiphlogistic
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plaster fell within the exception and was not a drug and
observed that the question as to whether a medicine or a
substance was used exclusively or prepared for use
exclusively in accordance with the Ayurdevic or Unani system
of medicine was a question of fact, the decision of which
would hinge inter alia on expert evidence.
It has been urged by Mr. Bishan Narain that on a true inter-
pretation of the words embodying the exception a medicine
which has been prepared for use in accordance with the
Ayurvedic or Unani system would fall within the exception
notwithstanding the ,use of certain medicines like
Glycerine, Boric Acid etc. which are used in the Allopathic
system as also in the Ayurvedic or Unani systems. By way of
illustration, in the Unani system fat was being used in
preparation of certain medicines and instead of fat being
used now Glycerine is being used. This, according to Mr.
Bishan Narain, will not take the entire preparation of the
Antiphlogistic Plaster as such outside the scope of the
exception in the definition of drug in the Act. An attempt
has, also been made to show, by reference to certain
provisions of the Act, that the Government Analyst to whom
the sample of the plaster was sent, was not qualified and
indeed could not be qualified to express any opinion about
medicines used or prepared for use in accordance with the
Ayurvedic and Unani systems.
The position taken up on behalf of the State is that in fact
and substance all the drugs and medicines mentioned in the
British Pharmaceutical Codex have been employed in the
preparation of Bindra’s Antiphlogistic Plaster. It is
strenuously contended that by a simple device of calling it
a Unani or Ayurvedic preparation in which admittedly
Glycerine, Kaolin, Boric Acid etc. have been used, which
find place in British Pharmaceutical Codex and are clearly
drugs, the appellants cannot escape the consequences of
infringement of the provisions of the Act.
At this stage it would be useful to refer to some of the,
important provisions of the Act. It was enacted to regulate
the import, manufacture,, distribution and sale of drugs.
The definition of drug as given. in s. 3.(b) was made as
wide as it could be and the only exception related to the
medicines and substances
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used or prepared for use exclusively in the Ayurvedic or
Unani system.
Chapter IV contains provisions relating to manufacture, sale
and distribution of drugs. Section 16 says, the expression
" standard quality" when applied to a drug means that the
drug complies with the standard set out in the Schedule.
Section 17 relates to misbranded drugs. Section 18
prohibits manufacture and sale of sub-standard drugs
including misbranded drugs. Sections 20 & 21 provide for
the appointment of Government Analysts and Inspectors, the
procedure to be followed by them and the reports of
Government Analysts. Section 27 contains the penalty for
manufacture, sale etc. of drugs in contravention of Chapter
IV; the punishments provided being quite severe.
A number of amendments were made by Act XIII of 1964 some of
which may be noticed. These are strictly not relevant for
our purposes except for understanding the legislation on the
subject. In cl. (1) the words "other than medicines and
substances exclusively used or prepared for use in
accordance with the Ayurvedic or Unani system of medicine"
were deleted. Before clause (aa) the following clause was
inserted :
(a) "Ayurvedic (including Siddha) or Unani
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drug"includes all medicines intended for
internal or external use for or in the
diagnosis, treatment mitigation or prevention
of disease in human beings, mentioned in, and
processed and manufactured exclusively in
accordance with the formulae described in, the
authoritative books of Ayurvedic (including
Siddha) and Unani Tibb) system of medicine,
specified in the First "Schedule"
Chapter IV-A was added containing provisions relating to
Ayurvedic including Siddha and Unani drugs. According to S.
33(e) in that Chapter, from such date, as may be fixed by
the State Government by notification in the official gazette
no person shall himself or by any other person on his behalf
sell or stock or exhibit for sale, or distribute, any
Ayurvedic (including Siddha) or Unani drug other than that
manufactured by a manufacturer licensed under this Chapter.
Penalties were provided for the infringement of the
provisions contained in the Chapter.
There can be no difficulty now after the amendments made by
Act XIII of 1964 in the matter of medicines and substances
exclusively used or prepared for use in accordance with the
Ayurvedic or Unani system of medicine provided they are
processed and manufactured according to the formulae,
described in the authoritative books as specified in the
First Schedule. The difficulty, however, remains with
regard to the true import of the
225
exception in the definition of "drug" in the Act. In
Chimmanlal Jagjivandas Sheth v. State of Maharashtra(1) the
appellant had been prosecuted for an, offence under s. 18 of
the Act inter alia for manufacturing drugs which were of
sub-standard quality. Certain samples of absorbent cotton
wool, roller bandages and guaze which he had manufactured
were seized and he had not only stored them but he was also
passing them off as though they were manufactured by a firm
of repute at Secunderabad. The Government Analyst had
reported that only the lint was of standard quality and the
other articles were not of standard I quality. He had been
convicted and sentenced to undergo rigorous imprisonment for
three months and to pay a fine of Rs. 100 under each count
by the High Court on appeal against acquittal. After
setting out the definition of drug as given in s. 3(b) this
Court observed:
"The said definition of drug is comprehensive
enough to take in not only medicines but also
substances intended to be used for or in the
treatment of diseases of human beings or
animals. This artificial definition
introduces a. distinction between medicines
and substances which are not medicines
strictly so called. The expression
’substances’, therefore, must be something
other than medicines but which are used for
treatment.
The dictionary meaning of the words "medicines and
substances" may be noticed. In Shorter Oxford English
Dictionary the appropriate meaning of "medicine" is
"medicament especially one taken internally--medicament
generally". The meaning substance" relevant for our
purposes is "any particular kind, of corporeal matters
species of matter of a definite chemical positions piece or
a mass of particular kind of matters a body of a specified
composition or texture."
Now if the, expression "substances" is to be taken to mean
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something other than "medicine" as has been held in our
previous decision it becomes difficult to understand how the
word "and" as used in the definition of drug in s. 3 (b) (i)
between "medicines" and "substances" could have been
intended to have been used conjunctively. It would be much
more appropriate in the context to read it disjunctively.
In Stroud’s Judicial Dictionary, 3rd Ed. it is stated at
page 135 that "and" has Generally a cumulative, sense,
requiring, the fulfillment of all the conditions that it
joins together, and herein it is the antithesis of "or".
Sometimes, however, even in such a connection, it is, by
force of a contents, read as "or". Similarly in Maxwell on
Interpretation of Statutes, 11th Ed., it has been accepted
that "to carry out the intention of the legislature it is
occasionally found necessary to read the conjunctions ’or’
and ’and’ one for the other".
(1) [1963] Sup. 1 S.C.R. 344.
LO SuP. C. I/68-16
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The scheme of cl. (i) of S. 3(b) apparently is to take in
all medicines or substances with the exception of such
medicines or substances which are exclusively used or
prepared for use in accordance with the Ayurvedic or Unani
system of medicine. The exception made in the case of
latter class of medicines or substances was essentially
meant to cover only such medicines or substances which were
used in the Ayurvedic or Unani system or were prepared for
use in accordance with those systems. In other words all
medicines or substances had, under S. 16 of the Act, to
comply with the standard set out in the Schedule, as it
stood before the amendment made by Act XIII of 1964. In the
Schedule classes of drugs and the standard which was to be
complied with were set out with reference mostly to the
standards maintained at the National Institute for Medical
Research, London and the standards of identity, purity and
strength specified in the (current edition for the time
being of the British Pharmacopoeia) or the British
Pharmaceutical Codex or any other prescribed Pharmacopoeia,
or adopted by the Permanent Commission on Biological
Standardisation of the (World Health Organisation). Only
one category consisting of medicines and substances used or
prepared for use exclusively in accordance with the
Ayurvedic or Unani system of medicine was taken out of the
definition of drug before the amendments made by Act XIII of
1964. That Act, as mentioned before, deleted the exception.
In our view medicines or substances have to be taken as a
whole and in the present cases it will have to be decided by
the trial magistrate whether Bindra’s Antiphlogistic Plaster
and Bindra’s Yabrooj Plaster (Belladona Plaster) are
medicines which are exclusively used or which have been
prepared for use exclusively in accordance with the
Ayurvedic or Unani system of medicine. As regards the
adverb "exclusively" we concur in the view of the High Court
that it must be taken to govern the words " used" as well as
"prepared for use"; but in our opinion each individual
ingredient or component of the preparation in question will
not be the decisive or determining factor and what the court
will have to decide after recording such evidence as may be
produced will be whether the aforesaid medicines (they can
hardly be called substances) were exclusively used or were
prepared for use exclusively in accordance with the
Ayurvedic or Unani system. If they fulfill that test they
would be excluded from the definition of drug as contained
in S. 3(b)(i). With these observations, however, the
appeals are dismissed.
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R.K.P.S.
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