LexINOX AIR PRODUCTS LIMITED NOW KNOWN AS INOX AIR PRODUCTS PRIVATE LIMITED AND ANOTHER versus THE STATE OF ANDHRA PRADESH
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[2025] 1 S.C.R. 1235 : 2025 INSC 128 INOX Air Products Limited now known as INOX Air Products Private Limited and Another v. The State of Andhra Pradesh (Criminal Appeal no. 486 of 2025) 30 January 2025 [B.R. Gavai* and Augustine George Masih, JJ.] Issue for Consideration Whether selling of Nitrous Oxide I.P. by the appellant no. 1 company to the unlicensed accused No.3 firm which does not possess license under Form 20B of the Drugs and Cosmetics Act, 1940, was in contravention of s.18(a)(vi) read with r.65(5)(1)(b) of the Rules, punishable u/s.27(d) of the said Act. Headnotes† Drugs and Cosmetics Act, 1940 – ss.3(f), 18(a)(vi), 27(d) – Drugs and Cosmetics Rules, 1945 – rr.65(5)(1)(b), 70, Form 20B, 25, 26 – Manufacture and sale of drugs – Condition of licences – Meaning of term “manufacture” – Appellant no. 1, company engaged in the manufacture and sale of industrial and medical gases in India – Complaint lodged by Drugs Inspector that appellant no. 1 sold Nitrous Oxide I.P. to the accused No.3 firm which did not have license for sale and was in contravention of s.18(a)(vi) read with r.65(5)(1)(b) of the Rules, punishable u/s.27(d) of the said Act – Trial court took the complaint on its file and issued summons to accused persons including the appellants – Appellants filed petition before the High Court praying for calling of the records on the file of the trial court and to quash the same against the appellants – High Court dismissed the petition – Correctness: Held: Both appellant no.1 and accused no.3 possessed licence under Form 25 – Submission that the licence under Form 25 is subject to Form 20B and since accused no.3 did not have licence under Form 20B, sale to accused no.3 was in contravention of s.18(a)(vi) is totally fallacious in nature – ‘Manufacture’ includes any process or part of a process for making, altering, ornamenting, * Author 1236 [2025] 1 S.C.R. Supreme Court Reports finishing, packing, labelling, breaking up or otherwise treating or adopting any drug or cosmetic with a view to its sale or distribution – Accused no.3, holding licence under Form 25, entitled to sell and distribute the product received from appellant no.1 after altering, breaking it up and packing it in smaller containers – Even if the allegations made in the complaint are taken at its face value, no case made out for offence punishable u/s. 18(a)(vi) rw s.27(d) – Furthermore, in the order passed by the Magistrate while issuing the process, except recording the submissions of the complainant, no reasons recorded for issuing the process against accused persons – Order of the Magistrate summoning the accused must reflect that he has applied his mind to the facts of the case and the law applicable thereto – No application of mind even for the namesake by Magistrate while issuing process – Also, the High Court totally misdirected itself – Interpretation by High Court that since accused no.3 was given licence to manufacture, he was not authorized to purchase it from appellant no.1, is without considering the plain nature of s.3(f) and is totally unsustainable in law – Impugned judgment quashed and set aside – Summoning order also quashed and set aside – Code of Criminal Procedure, 1973 – s.482. [Paras 21-33, 35, 38-41] Case Law Cited Lalankumar Singh and Others v. State of Maharashtra, 2022 INSC 1059 : [2022] 14 SCR 573 : 2022 SCC OnLine SC 1383; Pepsi Foods Ltd. and Another v. Special Judicial Magistrate and Others, 1997 INSC 714 : [1997] Supp. 5 SCR 12 : (1998) 5 SCC 749; Sunil Bharti Mittal v. Central Bureau of Investigation, 2015 INSC 18 : [2015] 1 SCR 377 : (2015) 4 SCC 609; Mehmood Ul Rehman v. Khazir Mohammad Tunda and Others, 2015 INSC 983 : [2015] 4 SCR 841 : (2015) 12 SCC 420; Krishna Lal Chawla and Others v. State of Uttar Pradesh and Another, 2021 INSC 160 : [2021] 2 SCR 550 : (2021) 5 SCC 435 – referred to. Books and Periodicals Cited Black Law’s Dictionary, 5th Edition – referred to. List of Acts Drugs and Cosmetics Act, 1940; Drugs and Cosmetics Rules, 1945; Code of Criminal Procedure, 1973. [2025] 1 S.C.R. 1237 INOX Air Products Limited now known as INOX Air Products Private Limited and Another v. The State of Andhra Pradesh List of Keywords Nitrous Oxide I.P.; Industrial and medical gases; License for manufacture of Nitrous Oxide I.P.; License for sale of Nitrous Oxide I.P.; License under Form 20B of the Drugs and Cosmetics Act, 1940; Meaning of term “ma
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