HOLY CROSS HOSPITAL Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioners have filed this Original Petition challenging the direction issued by the second respondent, Drugs Controller to introduce and enforce the system of Drugs Licence to the petitioners hospital. Inter alia it is also prayed that R.3 of the Drugs and Cosmetics (IXth Amendment) Rules, 1994 is liable to be struck down.

(2.) The petitioners have given in detail the manner and circumstances under which Drugs had been kept in the hospitals. It is submitted that there is no external dispensation, but the drugs purchased by the hospitals from manufacturers are checked in the hospitals before internal consumption. It is pointed out that under S.18 of the Drugs and Cosmetics Act, 1940, only sellers, stockists and persons similarly situated are obliged to secure a licence and it was never envisaged that hospitals having in their possession such drugs are also obliged to get such licence, placing them along with such establishments.

(3.) It is also submitted that no profit is derived from the sale of medicines. By way of amendment in the Drugs and Cosmetics Rules, exemption granted to charitable institutions under schedule K had been lifted. Petitioners submit that such steps amount to violation of fundamental rights under Art.14 of the Constitution.