Facts
The petitioner held drug licences for the sale, storage and distribution of drugs.
Source reference: paras. 2–5, pp. 3–5Following an inspection in May 2017, the Assistant Drug Controller cancelled the licences, citing alleged irregularities including the storage of expired and damaged medicines.
Source reference: paras. 2–5, pp. 3–5The petitioner appealed under Rule 66(2) of the Drugs and Cosmetics Rules, 1945, and the Appellate Authority allowed the appeal and restored the licences on 19 April 2018.
Source reference: paras. 2–5, pp. 3–5The Authority later stayed that order on 27 August 2018 and, after rehearing, passed a further order on 14 September 2018.
Source reference: paras. 2–5, pp. 3–5The petitioner challenged the Authority’s power to reopen its final appellate decision.
Source reference: paras. 2–5, pp. 3–5Issues
1. Whether the Appellate Authority, having finally allowed the petitioner’s appeal under Rule 66(2), had power to review, recall or reopen its order dated 19 April 2018 in the absence of an express statutory provision.
Source reference: para. 9, p. 92. Whether the subsequent orders staying and reconsidering the appellate decision could be sustained in law.
Source reference: paras. 10–12, pp. 9–10Law Applied
Rule 66(2) of the Drugs and Cosmetics Rules, 1945, provides for an appeal but, as applied by the Court, does not confer a power of review on the Appellate Authority.
Source reference: para. 6, pp. 5–10A quasi-judicial authority cannot review its own final order unless the governing statute expressly grants that power.
Source reference: paras. 10–12, pp. 9–10The Court relied on the Full Bench decision in Nand Kumar Thakur v. The State of Bihar & Ors., L.P.A. No. 672 of 2009, which affirmed that a quasi-judicial authority has no inherent power to review its decision absent express statutory authority.
Source reference: paras. 6, 10–12, pp. 5–10Reasoning
The Appellate Authority had exercised its appellate jurisdiction and finally disposed of the appeal on 19 April 2018.
Source reference: paras. 10–12, pp. 9–10The State identified no provision in the Act or Rules empowering the Authority to review or recall that decision.
Source reference: paras. 10–12, pp. 9–10Applying the principle in Nand Kumar Thakur, the Court held that the Authority could not assume a review power merely by staying its earlier order and rehearing the matter.
Source reference: paras. 10–12, pp. 9–10Accordingly, the later orders could not be sustained.
Source reference: paras. 10–12, pp. 9–10Holding
The Court held that the Appellate Authority lacked power to review or reopen its final order under Rule 66(2).
It allowed the writ petition and expressly quashed the order dated 27 August 2018; it also held that the subsequent order dated 14 September 2018 could not be sustained in law.
Source reference: paras. 12–15, p. 10Acts & Sections Cited
1 provisions across 1 statute referred to in this judgment. Linked provisions open on LawLens.
Bihar and Orissa Local Self-Government Act, 18851
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M/s Shrinivas Gujrat Laboratories Pvt. Ltd.vsThe State Of Bihar and Ors
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