Bombay High Court High Court

Union Of India vs Jagdish Singh And Anr on 17 February, 2011

Bombay High Court
Union Of India vs Jagdish Singh And Anr on 17 February, 2011
Bench: J. H. Bhatia
T
                                    1                    Cri.Appln. No.1405.10




                                                                            
          IN THE HIGH COURT OF JUDICATURE AT BOMBAY
               CRIMINAL APPELLATE JURISDICTION




                                                    
              CRIMINAL APPLICATION NO.1405 OF 2010


    Union of India                  .. Applicant.




                                                   
          Vs.
    Jagdish Singh and Anr.          .. Respondents.

                               WITH




                                       
              CRIMINAL APPLICATION NO.5718 OF 2010


    Union of India
         Vs.
                              ig    .. Applicant.

    Harvinder Singh and Anr.        .. Respondents.
                            
                               WITH

              CRIMINAL APPLICATION NO.5719 OF 2010
          


    Union of India                  .. Applicant.
       



         Vs.
    G.Samuel @ Anna @ Raju & Anr.         .. Respondents.

                               WITH





              CRIMINAL APPLICATION NO.5722 OF 2010


    Union of India                  .. Applicant.
          Vs.





    Anil Kumar Menon @ Allen
    and Anr.                        .. Respondents.

                               WITH

              CRIMINAL APPLICATION NO.5725 OF 2010


    Union of India                  .. Applicant.
         Vs.




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                                          2                    Cri.Appln. No.1405.10


    Harjinder Ram and Anr.               .. Respondents.




                                                                                 
                                  WITH




                                                         
               CRIMINAL APPLICATION NO.5726 OF 2010

    Union of India                       .. Applicant.
         Vs.




                                                        
    Veer Bahadur Singh and Anr.          .. Respondents.



    Shri F.E.Saldanha, Ms.Revati Mohite Dere alongwith Ms.Smita




                                            
    Deokar and Mandar Goswami, Spl. P.P., for the applicant.
                             
    Shril Anil G.Lalla alongwith Mr.Sunil Ghadge for respondent no.1 in
    Cri. Appln. No.1405 of 2010 and Appln. No.5725 of 2010.

    Shri Ayaz Khan for respondent no.1 in Cri.Appln. No.5718 of 2010
                            
    and Cri. Appln. No.5722 of 2010.

    Ms.Sartaj Shaikh for respondent no.1 in Cri.Appln. No.5719 of 2010.
           

    Shri Dilip Mishra for respondent no.1 in Cri.Appln. No.5726 of 2010.

    Ms.A.T.Javeri, A.P.P., for respondent no.2 - State.
        



                      CORAM : J.H.BHATIA, J.

DATED : 17TH FEBRUARY, 2011.

ORAL JUDGMENT :-

1. All these applications are filed by the Union of India seeking

cancellation of bail granted to accused nos.1 to 6 by the learned

Special Judge by different orders.

2. According to the prosecution on the basis of specific

information received, the officers of the Narcotics Central Bureau,

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3 Cri.Appln. No.1405.10

Mumbai Zonal Unit, Mumbai intercepted accused no.1 – Jagdish

Singh, accused no.2 – Harvinder Singh and accused no.3 – Harjinder

Ram near the Oberoi Mall, Goregaon (East), Mumbai when they

arrived there in Toyota Innova car bearing registration No.PB-10-

CJ-2414. They delivered the contraband to taxi driver – Veer Bahadur

Singh, who is accused no.4 The taxi driver had come by taxi

No.MH-01-X-5483 for taking delivery of the contraband. On

interception 25 kgs. of Methamphetamine was recovered. After

completing the formalities it was seized, samples were taken.

statements of accused nos.1 to 4 were recorded under section 67 of
The

the Narcotics Drugs and Psychotropic Substances Act, 1985 (for

short hereinafter referred as “NDPS Act”) on 9th June, 2009. It was

revealed that accused nos.1 to 3 had brought the said contraband

from Punjab by car and it was to be delivered to accused no.5 – Anil

Kumar Menon. Accused no.4, taxi driver – Veer Bahadur Singh had

come near the Oberoi Mall to receive that consignment for and on

behalf of accused no.5 – Anil Kumar Menon. During interrogation, in

the statements of accused no.4 – Veer Bahadur Singh it was revealed

that accused no.5 – Anil Menon and accused no.6 – G.Samuel @ Anna

use to provide strategic and logistic support for export of the drugs to

Cambodia. The statements of accused no.6 – G.Samuel @ Anna was

also recorded under section 67 and he also confirmed this fact.

Initially, the crime was registered bearing No.NCB/BZU/CR/09/2009.

The samples were sent to forensic laboratory and after getting the

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4 Cri.Appln. No.1405.10

report it was confirmed that the samples were Methamphetamine.

The complaint was filed in the court of Special Judge, Mumbai on 4th

December, 2009 and it came to be registered as NDPS Special Case

No.152 of 2009.

3. First of all, accused no.1 – Jagdish Singh filed bail application

No.237 of 2009 which was rejected by learned Special Judge as per

the order dated 16th November, 2009. Thereafter, he filed another

application for bail relying on certain authorities of this court as well

as from different High courts and Supreme Court. His main

contention was that even though Methampethamine is shown as

psychotropic substance in schedule to the NDPS Act, it was not

shown in schedule I to the NDPS Rules and, therefore, possession or

transportation of Methampethamine could not be an offence. After

hearing the parties the learned Special Judge granted bail to him by

the order dated 3.3.2010. That order is sought to be set aside and

cancelled by the Union of India. It may be noted that initially this

court had granted stay to implementation of the bail order. That

order was challenged before the Supreme Court and the Supreme

Court allowed the appeal and set aside the order of stay passed by

this court while the application for cancellation of bail continues to be

pending before this court. After accused no.1 – Jagdish Singh was

granted bail, accused nos.2 to 6 also filed different applications for

bail before the learned Special Judge who by orders dated 12.10.2010

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5 Cri.Appln. No.1405.10

granted bail to each of them. The Union of India has challenged

those orders and seeks cancellation of bail.

4. Prosecution has challenged the grant of bail by the Special

Judge on the ground that the Methamphetamine is a psychotropic

substance as defined in Section 2(xxiii) as it is shown at Serial No.19

in the Schedule of the NDPS Act. It is contended that Section 8(c)

provides that no person shall produce, manufacture, possess, sell,

purchase, transport, warehouse, use, consume, import inter-State,

export inter-State, import into India, export from India or tranship

any narcotic drug or psychotropic substance, except for medical or

scientific purposes and in the manner and to the extent provided by

the provisions of this Act or the rules or orders made thereunder.

Section 22 provides punishment for contravention in relation to

psychotropic substances. It is also pointed out that as per the table

notified by the Government of India as per sub-clause (viia) and

(xxiiia) of Section 2 of the NDPS Act, small quantity of

Methamphetamine, also known as Metamfetamine, is 2 grams while

commercial quantify is 50 grams. In this case, 25 kg. Of

Methamphetamine in powder form was recovered. It is contended

that in view of the large quantity of psychotropic substance under

Section 22(c), the offence is punishable with imprisonment for not

less than 10 years and which may also extend to 20 years with fine.

It is contended on behalf of the prosecution that the learned trial

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6 Cri.Appln. No.1405.10

court committed error in holding that the provisions of NDPS Act are

not applicable and that no offence under the said Act is made out.

5. On the other hand, the learned Counsel for the accused persons

vehemently contended that even though Methamphetamine is shown

as psychotropic substance in the Schedule annexed with the NDPS

Act, it is not shown in the Schedule I as per Rules 53 and 64 of the

NDPS Rules, 1985 and therefore, under the Rules, the general

prohibition imposed by Rules 53 and 64 are not applicable. He also

contended that it a drug in Schedule X under the Drugs and

Cosmetics Act, 1940 and therefore, the provisions of NDPS Act will

not be applicable. He contended that assuming, but not admitting,

that the said substance was in possession of the accused persons, still

it does not amount to an offence and in support of this, he placed

reliance upon several authorities, particularly, the judgment of Delhi

High Court in Rajinder Gupta vs. The State, judgment of this High

Court in M.V. Henry, Intelligence Officer vs. Ravi Prakash Goel

& Another (Criminal Application No.3295/2005) and Pradeep

Dhond vs. Intelligence Officer, Narcotics Control Bereau

(Criminal Application No.6787/2005), Riyaz s/o. Razak Menon &

Anr. vs. The State of Maharashtra (Criminal Application

No.3196/2010) and Supreme Court judgment in State of

Uttaranchal vs. Rajesh Kumar Gupta, 2007 (1) Crimes 6 (SC).

According to him, when the said Methamphetamine is a scheduled

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7 Cri.Appln. No.1405.10

drug under the Drugs and Cosmetics Act and when it is not included

in Schedule I under the Rules, the provisions of Section 8 and 22 of

the NDPS Act will not be applicable and no offence is made out. He

contended that the trial court was justified in granting bail to the

accused persons relying on the judgment of this Court in M.V.

Henry, Intelligence Officer vs. Ravi Prakash Goel & Another

(supra). Learned counsel for accused no.5 also contended that

accused no.5 was having a certificate of import and export from the

Ministry of Commerce and he has also license to sell, stock, exhibit or

offer for sale or distribution of certain medicines from the licensing

authority, Food and Drug Administration, Maharashtra State and,

therefore, the provisions of NDPS Act would not be applicable to him.

Learned counsel also contended that statement of accused no.5 under

section 67 of the NDPS Act was recorded after his arrest and,

therefore, it cannot be given much importance and further this

statement was retracted by him later on before the Metropolitan

Magistrate.

6. At the outset it may be stated that I had occassion to deal with

similar matter in Criminal Application No.3618 of 2010 Union of India

Vs. Ravindran Krarapaya @ Ravi & Ors. and Criminal Application

No.5640 of 2009 Union of India vs. Xie Jing Feng @ Richard & Anr. in

which 7 Kgs. of Methampethamine was alleged to be recovered from

the accused persons. Same arguments were also advanced by both

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8 Cri.Appln. No.1405.10

the parties in those applications which were filed by the Union of

India for cancellation of bail. I have dealt with the related provisions

of NDPS Act and Rules in depth in the judgment dated 19th

November,2010. Later on the reasons given in the said judgment

were adopted in toto by another learned Judge of this court in

Criminal Application no.4824 of 2010 Union of India Vs. Riyaz Razak

Menon & Ors. which was decided on 10th January, 2011 (Coram:

R.C.Chavan, J.). In fact to a great extent these applications are

covered by the earlier judgment dated 19th November, 2010 but it

would be useful to deal with the legal position again as some more

points are raised in these matters.

7. Section 2(xxiii) defines psychotropic substance. It reads thus :-

“”psychotropic substance” means any substance,
natural or synthetic, or any natural material or
any salt or preparation of such substance or

material included in the list of psychotropic
substances specified in the Schedule.”

Methamphetamine is shown at entry no.19 in the Schedule of the

psychotropic substances and therefore, there can be no dispute that

Methamphetamine is the psychotropic substance as defined in

Section 2(xxiii). Section 2(viia) provides that commercial quantity, in

relation to narcotic drugs and psychotropic substances, means any

quantity greater than the quantity specified by the Central

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Government by notification in the Official Gazette and similarly,

clause (xxiiia) provides that small quantity, in relation to narcotic

drugs and psychotropic substances, means any quantity lesser than

the quantity specified by the Central Government by notification in

the Official Gazette. The Central Government has issued a

Notification under sub-clause (viiia) and (xxiiia) of section 2 and

Methamphetamine, also known Metamfetamine, is at Entry no.159 of

the said table and as per column 6, the commercial quantity means

the quantity more than 50 grams. In the present case, 7 kg. of

Methamphetamine was allegedly seized from flat no.601 and thus,

undoubtedly, it is huge commercial quantity.

8. Section 8(c) of the NDPS Act reads as under :-

“8. Prohibition of certain operations – No

person shall –

(a) xxxxxxxxxxxx

(b) xxxxxxxxxxxx

(c) Produce, manufacture, possess, sell, purchase,
transport, warehouse, use, consume, import
inter-State, export inter-State, import into India,
export from India or tranship any narcotic drug
or psychotropic substance,

except for medical or scientific purposes and in
the manner and to the extent provided by the
provisions of this Act or the rules or orders made
thereunder and in a case where any such
provision, imposes any requirement by way of
licence, permit or authorisation also in
accordance with the terms and conditions of such
licence, permit or authorisation:”

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10 Cri.Appln. No.1405.10

9. From this it is clear that no person shall produce, manufacture,

possess, sell, purchase, transport, import inter-State, export inter-

State, import into or export from India or tranship any narcotic drug

or psychotropic substance except for medical or scientific purposes

and when it is produced, manufactured, possessed, sold, purchased,

transported, warehoused, used, consumed, imported or exported

inter-State or in India or outside India, all that has to be done in the

manner and to the extent provided by the said Act, Rules or Orders

that may be issued and also subject to the requirements of the

licence, permit or authorisation which may be issued.

10. Section 22 is a penal provision and is in relation to

psychotropic substance. It reads thus :-

“Section 22. Punishment for
contravention in relation to psychotropic
substance.-Whoever, in contravention of any

provision of this Act or any rule or order made or
condition of licence granted thereunder,
manufactures, possesses, sells, purchases,
transports, imports inter-State, exports inter-
State or uses any psychotropic substance shall be
punishable,-

(a) Where the contravention involves small
quantity, with rigorous imprisonment for a term
which may extend to six months, or with fine
which may extend to ten thousand rupees, or
with both;

(b) where the contravention involves quantity
lesser than commercial quantity but greater than
small quantity, with rigorous imprisonment for a

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11 Cri.Appln. No.1405.10

term which may extend to ten years, and with
fine which may extend to one lakh rupees;

(c) where the contravention involves commercial

quantity, with rigorous imprisonment for a term
which shall not be less than ten years but which
may extend to twenty years, and shall also be
liable to fine which shall not be less than one lakh
rupees but which may extend to two lakh rupees:

Provided that the Court may, for reasons to
be recorded in the judgment, impose a fine
exceeding two lakh rupees.”

11. From the language of Section 22, it becomes clear that

whoever manufactures, possesses as well as purchases, transports,

imports inter-State, export inter-State or uses any psychotropic

substance shall be punished if any such act is done in contravention

of any provisions of the NDPS Act OR any rule OR order made

under the Act OR in contravention of any conditions of the

licence granted to him. Further if the provisions of Section 8(c) and

Section 22 are read together, it would be clear that there is a

complete ban on the production, manufacture, possession, sale,

purchase, transport, warehouse, use, consumption, import inter-

State, export inter-State, import into India, export into India or

transhipment of any narcotic drug or psychotropic substance, except

for the medical or scientific purposes and where any person is

found to be in possession, etc. of any such psychotropic substance

and if he does not claim that he came in possession etc. for the

medical or scientific purposes by virtue of the provisions of the Act,

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12 Cri.Appln. No.1405.10

Rules, Orders, etc., he will be treated to have contravened the

provisions of Section 8(c) and that contravention is punishable under

Section 22. To bring the case under exception, the initial burden will

naturally lie on the accused to show that he had come in possession

etc. for the medical or scientific purposes. If he claims that he has

done any such act for medical or scientific purposes, it will be for him

to show that he had done it in the manner and to the extent provided

by the provisions of the Act, Rules or orders thereunder. If he fails to

show that he had done any such act for medical or scientific purposes

and as per the provisions of the Act, he will be liable to be convicted

and sentenced under Section 22. Further if a person having done any

such act under the provisions of the Act and but if contravenes any

Rule or Order or if contravenes the terms and conditions of licence,

permit or authorisation, still he is liable to be convicted under Section

22. In view of the provisions of Section 105 of the Evidence Act, when

a person is accused of an offence, the burden of proving the existence

and the circumstances bringing the case within any special exception

or proviso contained in any law defining the offence is upon him and

Court shall presume the absence of such circumstances. As noted

above, Section 8(c) prohibits a person from producing,

manufacturing, possessing, selling, purchasing, transporting,

warehousing, using, consuming, importing and exporting inter-State,

import into India and export from India or transhipment of drug and

psychotropic substance. Having prohibited such operations, Section 8

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13 Cri.Appln. No.1405.10

provides for exception where the person claims that he had done any

such operation for medical or scientific purposes. In view of the

provisions of Section 105 of the Evidence Act, the burden will lie on

that person to prove circumstances and the facts which would bring

his case within the exception.

12. In the present case prima facie it appears that accused nos.1, 2

and 3 had brought 25 Kgs. of Methampethamine from Punjab to

Bombay and they were intercepted when they gave delivery of the

same to accused no.4, Veer Bahadur Singh – Taxi Driver, who had

come to receive the consignment for and on behalf of accused no.5 –

Anil Kumar Menon. Accused nos.1 to 3 did not claim that they had

any license or authorisation for possession or inter-state transport

from Punjab to Maharashtra. Accused no.4 also does not claim that

he had any license or authorisation to take delivery of

Methampethamine. According to him he was innocent taxi driver and

was not knowing what were contents of the consignment. From his

statement under section 67 and from the arguments advanced on his

behalf by learned counsel it appears that he was regular taxi driver

for accused nos.5 and 6 and accused no.5 had asked him to collect

the said consignment and, therefore, he had accepted the said

consignment without any knowledge of the same. Accused no.5

claims that he has a certificate for export and import and also licence

from the Food and Drug Administration, Maharashtra Government for

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14 Cri.Appln. No.1405.10

sale, storage and manufacture of certain medicines. He has also

produced the copies of relevant certificate and licence. The certificate

of Importer-Exporter Code (IEC) appears to have been issued by the

Ministry of Commerce, Government of India on 1.11.2004 in favour of

Anjali Enterprises situated at Rose Villa, Christain Street, Madh

Island, Mumbai, Maharashtra with branch office at Andheri (East).


    This certificate     nowhere indicates that the certificate of import or




                                                  
    export     was     issued     to   him   for    the   purpose       of    possession,



    countries     of    any
                                  

transportation, inter-state import or export or export to foriegn

psychotropic substance and particularly

Methampethamine. It appears to be general Importer Exporter Code,

which authorises business of export and import. Naturally, this

certificate is of no use when he wants to deal in psychotropic

substance like Methampethamine. Next is licence in form 20-D issued

by the Licensing Authority, Food and Drug Administration,

Maharashtra State. This licence is issued on 31st August, 2004 in

favour of Anjali Enterprises. It shows that by this licence Anjali

Enterprises has licence to sell, stock or exhibit or offer to sell or

distribute by wholesale drugs other than those specified in Schedule

C, C(1) or X, subject to the conditions specified in the licence and

subject to provisions of Drugs and Cosmetics Act, 1940 and Rules

thereunder. Methampethamine is also a drug in Schedule “X” under

Drug and Cosmetics Act. The main argument advanced by learned

counsel for the accused against application of NDPS Act to

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15 Cri.Appln. No.1405.10

Methampethamine is that it is shown in schedule “X” of the Drug and

Cosmetics Act but is not shown in schedule-I of the NDPS Rules and,

therefore, NDPS Act is not applicable. The above referred licence

issued by the Food and Drug Administration gives licence to Anjali

Enterprises for certain operations in respect of drugs other than

those specified in Schedule C, C(1) and X and, therefore, this licence

does not authorise Anjali Enterprises or accused no.5 to sell, stock,

distribute, transport etc. any drug and particularly

Methampethamine which is shown in schedule “X”. In view of the

above the Importer-Exporter Code and the licence issued by the Food

and Drug Administration, Maharashtra State do not provide any

authority to accused no.5 to deal with or possess psychotropic

substance i.e. Methampethamine. These certificate and licence are of

no use in this case.

13. After the claim of accused no.5 to possess Methampethamine on

the basis of above referred certificate of Importer Exporter Code or

license issued by Food and Drug Administration, Maharashtra State is

rejected, there is no document on record produced by any of the

accused persons to bring their case within the scope and ambit of the

exception to Section 8(c). Therefore, consideration of rules framed

under NDPS Act would in fact be unnecessary. However, because the

learned Counsel for the respondent/accused have relied on certain

authorities, contending that as Methamphetamine is not shown in the

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Schedule I to the Rules, the provisions of NDPS Act are not

applicable, it will be necessary to deal with the relevant rules and the

authorities relied on by the learned Counsel.

14. Section 76(1) of the Act provides that subject to other

provisions of the act, the Central Government may, by notification in

the Official Gazette, make rules for carrying out purposes of this Act.

Section 9 provides that subject to provisions of Section 8, the Central

Government may, by

rules permit and regulate cultivation,

production, manufacture, etc. of coca plant, opium, other narcotic

drugs as well as psychotropic substances. The Central Government by

virtue of powers under Sections 9 and 76 framed and notified

Narcotic Drugs and Psychotropic Substances Rules, 1985. Chapter III

and IV provides for opium. In view of the language of Section 9, it is

clear that the Rules, that the Central Government has framed to

permit or regulate such operations, are subject to provisions of

Section 8 and Section 8, as pointed out above, prohibits any such

operation in respect of narcotic drugs or psychotropic substances

except for medical or scientific purposes. It means under Section 9,

the Government may frame rules to permit and regulate such

operations as per the said exception to Section 8 and not in

contravention of the same. Similarly, Section 76 clearly shows that

the Central Government may frame and make rules for carrying out

purposes of the Act and not for anything in contravention to that. The

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schedule of the psychotropic substances under the Act is part of the

Act and no rule can be framed or can be interpreted in the manner

which would be in contravention of the said schedule or the

contravention of Section 8 or Section 22.

15. Chapter 5 of the Rules deals with the rules and grant of

licence for the manufacture of drugs. Chapter 6 of the Rules deals

with import, export, transhipment of narcotic drugs and psychotropic

substances. Rule 53 puts a general prohibition on the import into and

export out of India on the narcotic drugs and psychotropic substances

specified in Schedule I subject to other provisions of that chapter.

Chapter 7 deals with psychotropic substances and Rule 64 provides

that no person shall manufacture, possess, transport, import inter-

State, export inter-State, sell, purchase, consume or use any of the

psychotropic substances specified in Schedule I. Thus, it will be clear

that while Rule 53 prohibits import in and export out of India of the

narcotic drugs and psychotropic substances specified in Schedule I.

Rule 64 prohibits inter-State import or export, sell, possession, etc. of

psychotropic substances specified in schedule I of the Rules. It may

be noted that prior to amendment with effect from 13th October,

2006 in the Schedule I of the Rules, 33 narcotic drugs and some

psychotropic substances were included in that Schedule I. After the

amendment, only there are three entries under the Narcotic Drugs

and there are three entries under the Psychotropic Substances,

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18 Cri.Appln. No.1405.10

fourth in each category is salts, preparations, admixtures, extracts

and other substances containing any of these drugs or psychotropic

substances. Thereafter, there is a Schedule II framed under Rule 53-A

which provides that narcotic drugs or psychotropic substances or

preparations specified in Schedule II shall not be exported to the

countries or to the regions mentioned therein. Again in Schedule II,

there are in all 45 entries and against each substance, in column

no.5, names of the countries are mentioned to which, that particular

narcotic drug and psychotropic substance cannot be exported.

Methamphetamine is at Serial No.30 in the said Schedule and against

that entry, names of 14 countries are mentioned to which this

substance cannot be exported. Rule 65 provides that manufacture of

psychotropic substances other than those specified in Schedule I shall

be in accordance with conditions of licence granted under the Drugs

and Cosmetics Rules, 1945, framed under the Drugs and Cosmetics

Act, 1940, by an authority in charge of drugs control in a State

appointed by the State Government in this behalf. Proviso of Rule 65

provides that said authority in charge of the drug control may issue a

licence to manufacture a psychotropic substance specified in

Schedule III for the purpose of export only. In the Schedule III, there

are 34 items.

16. If the schedule of the Act is perused carefully along with

Schedules I, II and III under the Rules, it will be clear that while the

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19 Cri.Appln. No.1405.10

Schedule under the Act describes the psychotropic substances, the

Schedule I, II and III are framed under the Rules for different

purposes and none of those three schedules contains all the

psychotropic substances which are shown in the schedule to the Act.

Some of them are in Schedule I, some of them are in Schedule II and

some are in Schedule III of the Rules and the purpose of each

schedule is different. If these schedules I, II and II are read along

with Rules, it will become clear that under Rule 53, drugs and

psychotropic substances specified in schedule I cannot be imported

into and exported out of India, except under an import certificate or

export authorisation issued under different provisions of that chapter.

Under Rule 64, no person shall manufacture, transport, possess,

import inter-State, export inter-State, sell, purchase, consume, use

any of the psychotropic substances specified in Schedule I. As per

Rule 65, the manufacture of psychotropic substances other than those

mentioned in Schedule I shall be in accordance with the conditions of

the licence granted under the Drugs and Cosmetics Rules, 1945. The

psychotropic substances in Schedule III should be manufactured

under licence issued by the authority in charge of the drug control in

the State. Rules 66(1) specifically provides that no person shall

possess any psychotropic substance for any of the purposes covered

by the Drugs and Cosmetics Rules, 1945 unless he is lawfully

authorised to possess such substance for any of the purposes under

the Rules. Thereafter, Rules 66(2) provides for possession and use of

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20 Cri.Appln. No.1405.10

psychotropic substances by research institutions, hospitals,

dispensaries, etc. It also provides for possession by an individual for

his personal medical use subject to prescription by the registered

Medical Practitioner. In normal circumstances for medical purposes,

one may be permitted to possess not exceeding 100 dosage units at a

time and for his personal long term medical use, he may be permitted

to possess more than 100 dosage but not exceeding 300 dosage at a

time. The quantity which may be possessed by the research

institutions, hospitals, dispensaries, etc. are also prescribed by the

Rules and the licence or permit which may be issued to them. From

this, it is clear that nobody can be in possession of any such

psychotropic substance unless he has got appropriate licence, permit

or authorisation either under these Rules or under the Drugs and

Cosmetics Rules, 1945. At the cost of repetition, it may be again

stated that in the present case, none of the accused persons claim to

have any such licence, permit or authorisation to possess or store or

use any quantity of Methamphetamine.

17. In Rajinder Gupta vs. State (supra), the accused-

applicant was a partner in the firm known as M/s.A.D.S. Associates. It

was alleged that as a partner of the said firm, he had sold 2,61,000

ampoules of Buprenorphine Hydrochloride Injections under the brand

name Bunogesic which he had allegedly received from M/s.Pharma

Deal Agencies, New Delhi. No recovery of the said Buprenorphine

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21 Cri.Appln. No.1405.10

Hydrochloride Injections was made from the petitioner. On the basis

of the record, it was revealed that he had sold those ampoules. Each

injection was of 2 ml each bearing the branded name “Bunogesic”

and each ml contained Buprenorphine Hydrochloride IP equivalent to

Buprenorphine Hydrochloride 0.3 mg and water for injection. It

means each ampoules contained 0.6 mg Buprenorphine

Hydrochloride. Two questions were posed before the Delhi High

Court, first, whether Buprenorphine Hydrochloride was a

Rules could be

psychotropic substance and if yes, whether Chapter VII of the NDPS

applicable. It was held that Buprenorphine

Hydrochloride is a psychotropic substance as shown in the Schedule

to the Act. However, it was also schedule H Drug and it could be

manufactured under the licence under the Drugs and Cosmetics

Rules, 1945 and the said drug was manufactured by and was received

from M/s.Pharma Deal Agencies by the petitioner. It was held that the

petitioner was carrying on business in partnership and that he had

received the injections which were manufactured by another

company under the licence and therefore, the provisions of NDPS Act

would not be applicable. In the result, the accused were granted bail.

It may further be noted that the Delhi High Court also calculated the

total quantity of the Buprenorphine Hydrochloride on the basis of the

ampoules which were seized on the basis of certain disclosures and it

was found that it was much less than the commercial quantity of 20

grams. In fact, in view of this, the case would not fall within the limits

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22 Cri.Appln. No.1405.10

of commercial quantity to which the rigours of Section 37 NDPS Act

are applicable and the bail application could be considered as per the

provisions of Section 437 or 439 of the Cr.P.C. The view taken by the

Delhi High Court in Rajinder Gupta (supra) was followed by

learned Single Judge of this Court in M.V. Henry, Intelligence

Officer vs. Raviprakash Goyal (supra). In that case also, according

to the prosecution, one Aslam Mohammed Shaikh was to receive a

consignment of Norphazine Injections containing Buprenorphine,

which is a psychotropic substance. On information, in presence of the

panch witnesses and Aslam Mohammed Shaikh, search of the

premises of transporter M/s.Chavla Carriers was carried out and the

NCB recovered and seized 11950 ampoules of the said psychotropic

substance. Said samples were manufactured by M/s.Gopish Pharma, a

firm carrying on business in New Delhi. Accused Ravi Prakash Goel

was a proprietor of the said firm. The said ampoules were transported

from M/s.Gopish Pharma i.e. from the accused Ravi Prakash Goel to

M/s. G and G Medicine Company which was the sole distribution

agent for M/s.Gopish Pharma. In that case, Aslam Mohammed Shaikh

was granted bail on the ground that the quantity of the psychotropic

substance was less than commercial quantity. On the same ground,

Ravi Prakash Goel was also granted bail. That order was challenged

by the Intelligence Officer before this Court. This Court (Coram : S.C.

Dharmadhikari, J.) concurred with the view taken by Delhi High Court

in respect of the Rules and held that the said drug, though a

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23 Cri.Appln. No.1405.10

psychotropic substance, was also a schedule H drug for which the

licences are given under the Drugs and Cosmetics Rules, 1945. In the

result, the application for cancellation of bail was rejected. It is

material to note that in paras 2 and 4 of that judgment, the learned

Judge repeatedly stated that the observations and findings in the said

order were only for the disposal of the bail application and those

observations are only prima facie and shall not prevent the court

below from recording its finding on merits at the time of the

conclusion of the trial. The learned Judge further observed that the

prohibition contained in the statute must be seen in the context of

individual operations and the psychotropic substance, in question.

This judgment was again followed by the learned Judge in Pradeep

Dhond vs. Intelligence Officer (supra). In Riyaz s/o. Razak

Menon vs. State of Maharashtra (Criminal Application

No.3196/2010) (supra), it appears that alprazolam and diazepam

powders were seized from the accused. The order shows that it was

argued that the said substances do not come within the ambit of

Section 8(c) of the NDPS Act and that the said substance seized from

the manufacturer therein may fall within the ambit of Drugs and

Cosmetics Act and therefore, NDPS Act could not be applicable. The

learned Judge referred to the judgments of Supreme Court in

Ouseph vs. State of Kerala, (2004) 4 SCC 446, Hussain vs.

State of Kerala (2000) 8 SCC 139 and State of Uttaranchal vs.

Rajesh Kumar Gupta 2007 (1) SCC 355 and held that the

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24 Cri.Appln. No.1405.10

provisions of Section 8(C) are not applicable. Details of the facts of

that case are not revealed in the judgment.

18. In State of Uttaranchal vs. Rajesh Kumar Gupta,

2007(1) Crimes 6 (SC), the accused was Ayurvedacharya and he

was operating from two clinics viz. Neeraj Clinic Pvt.Ltd and Dr.B.S.

Gupta Medical Charitable Society. He was assisted by eight other

Medical Practitioners. During the raid, 70 kg. Pure Phenobarbitone

was recovered. It was also revealed that from his two clinics, huge

quantity of the said drug was sold and sent to the customers by post

during the years 2001 to 2005. In that case also, the Supreme Court

dealt with different rules and as he was a Medical Practitioner and he

claimed that he was in possession of the said drugs for the medical

purposes, the case would be covered by the Drugs and Cosmetics Act

and Rules thereunder and therefore, even though the said drug was

also psychotropic substance within the meaning of Schedule to the

NDPS Act, still the provisions of Section 8 would not be applicable.

The Supreme Court upheld the grant of bail and rejected the appeal

preferred by the State. The Supreme Court also noted that the Delhi

High Court and Bombay High Court in the above referred two cases

had taken the same view. It may be noted here that in Customs New

Delhi vs. Ahmadalieva Nodira, 2004 Criminal Law Journal 1810

wherein Diazepam of 5 mg. tablets were seized. Three Judge Bench of

the Supreme Court had set aside the bail granted to the accused. It

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25 Cri.Appln. No.1405.10

may be noted that in Pradeep Dhond (supra), the Union had

preferred appeal before the Supreme Court and in the order dated

20th April, 2007, the Supreme Court noted the judgment in Collector

of Customs, New Delhi vs. Ahmadalieva Nodira (2004) 3 SCC

549 rendered by three Judge Bench and subsequent judgment of two

Judge Bench in the State of Uttaranchal vs. Rajesh Kumar Gupta

(supra) and in view of the provisions of Section 80 of the NDPS Act,

Their Lordships observed that the matter needs to be placed before

three Judge Bench. The learned Counsel for the parties informed that

the matter is still not decided by the larger Bench of the Supreme

Court. The reference of the matter to the larger Bench indicates the

difference of opinion by the three Judge Bench in the earlier case and

the two Judge Bench in the later case and therefore, Their Lordships

of the Supreme Court felt that the matter needs to be considered by

the three Judge Bench again, apparently to sort out the difference of

opinion. It is not necessary for this Court to make any comment about

the same. In my opinion, on facts none of the above authorities

including State of Uttaranchal vs. Rajesh Kumar Gupta (supra) is

applicable to the facts of the present case. In each of these cases,

certain ampoules of injections were manufactured by some

pharmaceutical company having certain licence under the Drugs and

Cosmetics Act and Rules. In Rajesh Kumar Gupta (supra), he was a

Medical Practitioner running two clinics and was also helped by other

Medical Practitioners. According to him, he was in possession of the

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26 Cri.Appln. No.1405.10

said drugs for medical purposes. Thus, in each of the cases, the

accused had tried to bring the case within the ambit and scope of

exception to Section 8 and the Courts had come to the conclusion, for

the purpose of deciding the bail applications prima facie, that the

case was not covered by the provisions of Section 8 read with Section

22 of the NDPS Act. Therefore, either bail was granted or confirmed.

19. The whole thrust of the argument advanced by learned counsel

for the accused was based on Rajesh Kumar Gupta (supra) which

was delivered by His Lordship Mr.Justice S.B.Sinha for the bench of

Supreme Court. It is useful to note that in D.Ramkrishnan Vs.

Intelligence Officer, Narcotics Control Bureau 2009 AIR SCW

4772 Mr Justice Sinha, heading the bench of Supreme Court, himself

distinguished the facts of that case from the facts of Rajesh Kumar

Gupta (supra). In D.Ramkrishnan (supra) accused no.1, who was

absconding, was indulging in illegal internet pharmacy business with

a branch at Coimbatore. Accused no.2 – D.Ramkrishnan was

managing the activities of the said branch. During the search it was

revealed that accused no.1 used to procure different drugs indicated

by the appellant – D.Ramkrishnan by the local pharmacy and pack

them separately as per packing slips and dispatch the same to the

customers through airmail and RMS post office at Coimbatore. The

drugs procured and exported were Alprazolam, Lorazepam and

Nitrazepam. These drugs find place at serial nos. 30, 56 and 64

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27 Cri.Appln. No.1405.10

respectively of the schedule appended to the NDPS Act. However,

none of these drugs were shown in schedule I to NDPS Rules. It was

revealed that appellant – D.Ramkrishnan and co-accused were said to

have got license under the Drug and Cosmetics Act, 1940 which gave

them general permission for import and export. After referring to the

observations in paragraph 19 and 20 in Rajesh Kumar Gupta, His

Lordship observed thus:

“11. Section 80 of the Act provides that the
provisions of the Act or the rules made
thereunder are in addition to, and not in
derogation of the Drugs and Cosmetics Act, 1940

or the rules made thereunder.

Drugs and Cosmetics Act, 1940 does not
deal with exports. The provisions of Customs Act

do. The licensees, therefore, were, thus, required
to comply with the specific requirements of the
Act and the Rules. It is not denied or disputed

that the appellant neither applied for nor granted
any authority to export by the Narcotic
Commissioner or any other Officer who is
authorized in this behalf.

12. We, therefore, are of the opinion that the
High Court is right in opining that the decision of
this Court in Rajesh Kumar Gupta (supra) is not
applicable to the facts of this case.”

20. Thus, the Supreme Court itself held that unless there was

necessary licence under the provisions of NDPS Act and Rules,

merely because of some licence under the Drug and Cosmetics Act,

the accused do not get licence or authorisation for dealing in

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28 Cri.Appln. No.1405.10

psychotropic substances shown in NDPS Act. Thus I am supported by

the judgment of the Supreme Court itself while distinguishing the

facts of the present case from Rajesh Kumar Gupta (supra),

Pradeep Dhond (supra) and M.V.Henry (supra).

21. The contention of learned counsel for the accused that the

provisions of NDPS Act would not be applicable to possession etc of

Methampethamine because it is not shown in schedule I of the NDPS

Rules though it is shown in schedule appended to NDPS Act has to be

rejected for one more reason. Methampethamine is psychotropic

substance shown in the schedule to NDPS Act. Section 22 of NDPS

Act provides that whoever, in contravention of any provisions of the

Act or any rule or order made or condition of licence granted

thereunder, manufactures, possesses, sells, purchases, transports,

imports inter-State, exports inter-State or uses any psychotropic

substance shall be punished according to the quantity. The

commercial quantity for Methampethamine is 50 gm. In the present

case 25 Kgs. of Methampethamine was seized from accused nos.1

to 4. For the offence involving commercial quantity punishment is

imprisonment for a term, which shall not be less than 10 years but

which may extend to 20 years with fine. Section 31 provides for

enhanced punishment for offences after previous convicton. Section

31-A provides only death sentence for certain offences after previous

conviction. As per section 31-A if any person, who has been convicted

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29 Cri.Appln. No.1405.10

of the commission of, or attempt to commit, or abetment of, or

criminal conspiracy to commit, an offence punishable under section

19, 24 and 27-A or an offence involving commercial quantity of any

narcotic drug or psychotropic substance, is subsequently convicted

for offence relating to engaging in the production, manufacture,

possession, transportation, import into India or transhipment, of the

NDPS specified in column (1) of the Table given in section 31-A and

involving the quantity which is equal or more than quantity indicated

against each such drug or substance shall be liable to puishment of

death. In the table Methampethamine is shown against entry No.(xi)

and quantity prescribed is 1500 gms. It means if a person has been

convicted for an offence involving commercial quantity of narcotic,

drug or psychotropic substance and after that conviction he is again

convicted with similar offence involving 1500 gms. of

Methampethamine the only sentence which can be awarded is death

penalty. If argument of the learned counsel for accused is accepted

that merely because Methampethamine is not shown in schedule I of

the Rules, provisions of NDPS Act are not applicable, the provisions

of section 8, 22 and 31-A will become nugatory and redundant. It is

impossible to hold that the provisions of NDPS Act will be governed

or overshadowed by the Rules framed thereunder. Under Section 76,

the Central Government is empowered to make rules for carrying out

purposes of the said Act and not in contravention of the said Act.

Therefore, this argument advanced by learned counsel for the

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30 Cri.Appln. No.1405.10

accused has no basis and is liable to be rejected.

22. Learned counsel for accused no.5 also contends that against

entry no.30 pertaining to Methampethamine in schedule to the NDPS

Rules, name of Cambodia is not shown as country to which the said

drug can not be exported. The heading of column 5 reads thus:

“Country or region to which export is prohibited”. In column 2 and 3,

the names of narcotic drugs or psychotropic substance is shown. In

column 4, its chemical name is given and in column 5 names of the

countries to which export is prohibited is shown. In entry no.30

though the name of Cambodia is not there, name of Thailand is

specifically mentioned. If the heading of column 5, as noted above, is

read carefully, it indicates that prohibition against export is not only

to that country but also to that region in which that country is

situated. Cambodia has common border with Thailand and,

therefore, Cambodia is a country in the region in which Thailand is

situated and, therefore, it can be held that export of

Methampethamine to Cambodia is also prohibited. Prima facie

accused nos.5 and 6 used to provide logistic support for transhipment

and export of Methampethamine to Cambodia. Therefore, prima facie

case is made out against them under NDPS Act.

23. In the present case huge quantity of 25 Kgs. of

Methampethamine was recovered from possession of accused nos.1

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31 Cri.Appln. No.1405.10

to 4 and prima facie it is shown that accused nos.5 and 6 were

involved in transhipment and export of the said psychotrophic

substance. It is not the case of the accused that they had any

licence, permit or authorisation either to manufacture or possess or

store the said psychotropic substance. Therefore, none of the above

authorities or the Rules comes to support of the accused. In fact, Rule

66 also prohibits any person from possession of any psychotropic

substance for any of the purposes covered by the Drugs and

Cosmetics Rules, 1945 unless he is lawfully authorised to possess a

substance for any of the said purposes under the Rules. In the

present case, accused do not claim to have any such authorisation.

Therefore, in view of the provisions of Section 8 read with 22 of the

NDPS Act, prima facie, the accused had committed the offence of

possession of commercial quantity of psychotropic substance i.e.

Methamphetamine and are prima facie, liable to be convicted and

sentenced under Section 22(c). Taking into consideration huge

quantity which is much beyond the limits of commercial quantity also

and the revelation made during the investigation that accused no.3

was regularly dealing with export of psychotropic substances from

India and that accused nos.1 and 2 were assisting him, no case is

made out to grant bail to them. The learned Special Judge did not

consider the facts of the present case and without considering the

facts and the legal position, granted bail following the judgment in

Ravi Prakash Goel and Pradeep Dhond (supra), without looking

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32 Cri.Appln. No.1405.10

to the difference in the facts of the cases. In view of the above facts

and circumstances, I hold that the trial court committed serious error

in granting bail to the accused persons and therefore, in the larger

interest of justice, it is necessary to set aside the said orders of bail.

24. Therefore, these applications are allowed and the impugned

orders granting bail to accused nos.1 to 6 are hereby set aside. The

accused persons shall immediately surrender before the Special

Judge, NDPS Act and they shall be taken in custody.

25. Learned counsel for the accused persons make request to stay

operation of this order for six weeks. The request is rejected.

(J.H.BHATIA,J.)

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