STATE OF H.P. Vs. C.L.MALHOTRA

JUDGEMENT

(1.) The present appeal has been directed by the State of Himachal Pradesh assailing the acquittal of the respondents (hereinafter referred to as the accused) as recorded by the learned Special Judge (Sessions Judge), Shimla vide judgment dated 7.9.1998 in Sessions Trial No. 15 -S/7 of 1997/96.

(2.) During the relevant period, that is, in 1989 -90, accused Dr. C.L. Malhotra, was the Director of Health Services, Himachal Pradesh. Accused Dr. O.P. Sharma was the Deputy Director, Health Services while accused S.N. Sharma was Assistant Drugs Controller. Accused Ranjan Banga and Suresh Sood are the Partners of the Firm Messers Rennice Drug House, Solan. Accused Umesh Sanghi was the Managing Director of Messrs Hindustan Trust Private Limited, New Delhi and accused R.S. Arora was the Managing Director of Messrs Indus Pharma Private Limited, New Delhi. Accused Vinod Kumar was the Managing Director of Messrs Krishan Chand and Sons, Delhi.

(3.) Sometime in the year 1989, the State Government intended to purchase a large number of Allopathic Drugs Kits for use in its various hospitals in the State. For this purpose tenders were invited by the Controller of Stores, Himachal Pradesh, Shimla. Tenders were submitted by a large number of manufacturers and/or suppliers of allopathic medicines. Tenders of Messrs Rennice Drug House, Solan of which the accused Ranjan Banga and Suresh Sood are partners, and that of Messrs Panacea Drugs and Pharmaceuticals Private Limited, Jassoor, District Kangra were accepted. Both these firms were, therefore, awarded the contract to supply the kits at the approved rates. The kits were to be purchased through the Director Health Services, Himachal Pradesh. As per the terms of the rate contract, a team of experts was to inspect the kits to be supplied before its despatch. A team comprising of accused Dr. O.P. Sharma and Shri S.N. Sharma was constituted. After obtaining the necessary administrative sanction/approval from the State Government, the accused Dr. C.L. Malhotra, in the capacity of being the Director Health Services, placed two orders with Messrs Rennice Drug House, respectively, on 28.12.1989 and 19.3.1990. Each of such supply order was for the supply of 490 kits. Both these supplies were to be made to the Chief Medical Officer, Mandi, for distribution amongst various health centres in Mandi District.