UNION OF INDIA Vs. JAISWAL MEDICAL HALL SISAI

JUDGEMENT

(1.) THESE two appeals are directed against the judgment and order dated August 18, 1987, and that dated April 10, 1989, passed by the learned Single Judges in two separate writ petitions challenging the notification dated July 18, 1980, issued under the Drugs and Cosmetics Act, 1940 (For short 'the Act') amending the Drugs and Cosmetic Rules, 1945 (For short 'the Rules') enhancing the fees payable for different licences granted under the Rules.

(2.) AS the preamble of the Act would show, it is an Act to regulate the import, manufacture, distribution and sale of drugs and cosmetics. Sections 12, 18 and 33 of the Act empower the Central Government to make rules for the purpose of giving effect to the provisions of the Act. Under Clause (e) of Sub section (2) of Section 33 of the Act, the Central Government has power to make rule prescribing the forms of licences for various categories like manufacture for sale or for distribution of any specific drug or class of drugs or cosmetics etc. It is also empowered to fix fees payable therefor and to provide for the cancellation or suspension of such licences. Conditions have also been prescribed under which licences are to be issued or cancelled for contravention thereof.

(3.) RULE 63 provides for duration of licence and reads as under 63. Duration of licence An original licence or a renewed licence to sell drugs, unless sooner suspended or cancelled, shall be valid up to the 31st December of the year following the year in which it is granted or renewed: Provided that if the application for renewal of licence in force is made before its expiry or if the application is made within six months of its expiry, after payment of additional fee, the licence shall continue to be in force until orders are passed on the application. The licence shall be deemed to have expired if application for its renewal is not made within six months after its expiry.