SNAPDEAL PRIVATE LIMITED Vs. STATE OF KARANATAKA

JUDGEMENT

(1.) The petitioner in Criminal Petition No.102191 of 2021 being accused No.1 and the petitioners in Criminal Petition No.102201 of 2021 being accused Nos.2 and 3 are before this Court seeking to quash the criminal proceedings initiated against them and pending in C.C.No.6652 of 2021 on the file of I Additional Civil Judge and JMFC Court at Hubballi, for the offences under Sec. 18(c) which is punishable under Sec. 27(b)(ii) and 28 of the Drugs and Cosmetics Act, 1940 (for short 'the Act').

(2.) The brief facts of the case as stated by the complainant-respondent is that, accused No.1 - Snapdeal is an online site owned and operated as a Company having its registered office at New Delhi, represented by accused Nos.2 and 3, engaged in shopping by providing platform for online marketing and selling of various consumer products. The drug by name SUHAGRA 100 tablets were displayed for sale in the said online site and same is being sold to various customers. Accused No.1 is the company doing business, accused Nos.2 and 3 are the Directors-cum-Promoters and Chief Executive Officer/Chief Operating Officer of accused No.1 and they are responsible for its day to day conduct of the business, as per the resolution passed by the Board of Directors of accused No.1. It is stated that a credible information was received regarding sale of drug - SUHAGRA tablets through online portal, without possessing valid drug license issued under the Act. CW2 carried out the investigation in this regard. CW5 placed an order for supply of the drugs through Snapdeal web portal and received the consignment on 19/12/2014. Similarly, CW3 also got SUHAGRA tablets through web portal. CW6 had also placed an order to get SUHAGRA drugs through Snapdeal web portal and had received the consignment on 17/4/2015. On enquiry with the Drugs Controller, Chandigarh it was revealed that the accused were not having valid license to deal with the drugs. A detailed investigation was undertaken by the complainant and it was found that accused No.1 is dealing with various items through its online site i.e., web portal www.snapdeal.com, without possessing any license under the provisions of the Act, but displayed, provided platform to exhibit and sell the drugs - SUHAGRA tablets and aided in commission of the Act. Thereby, committed the offence by violating Sec. 18(c), punishable under Sec. 27(b)(ii) of the Act and Rules there under.

(3.) Accused Nos.2 and 3 - the Directors-cum-Promoters and Chief Executive Officers/Chief Operating Officers of accused No.1 are responsible for the day to day conduct of the business of the said Company and they are responsible for providing platform to exhibit and sell the drugs in question without possessing valid license and they have also committed offences as stated above. It is stated that accused Nos.1 to 3 have also not disclosed source of acquisition of the said drugs and thereby violated Sec. 18A punishable under Sec. 28 of the Act. Therefore, the complainant requested the Trial Court to take cognizance of the offence and to initiate legal action.