Facts of the Case

The petitioners, licensed chemists operating as M/s Asis Pharmaceutical & Surgical Shop, New Delhi, were arrested in connection with FIR No. 138 dated 29.12.2022, registered under the NDPS Act after 4,800 intoxicant tablets of Alprazolam were recovered from two other accused travelling in a car. Investigation traced the tablets' batch numbers to the petitioners' licensed stock: while 7,800 strips had been legitimately purchased and accounted for, a further batch of 5,200 strips (52,000 tablets) could not be accounted for, leading to the petitioners' arrest.

Before the High Court, the petitioners — a 75-year-old senior citizen and his 55-year-old business partner, the latter a diabetic requiring daily insulin — argued that their GST returns (Annexure P-4) showed their firm's entire inventory as properly accounted for, corroborating that any unaccounted quantity, if it existed, was not attributable to any illegal diversion by them, and that the drugs in question fell within their lawfully licensed business of dealing in NDPS-scheduled medicines.

Issues Involved

  1. Whether bail should be granted to licensed chemists implicated in an NDPS case where a discrepancy in inventory, rather than any direct recovery from them, formed the basis of the allegation.
  2. Whether the petitioners' medical condition and personal circumstances warranted release pending trial.

Petitioner's Arguments

  • The petitioners hold a valid license to deal in NDPS-scheduled medicines and are not accused of any recovery directly from their possession.
  • Their GST returns show the firm's entire inventory as duly accounted for, undermining the allegation of unaccounted stock.
  • Petitioner No. 2 suffers from Type-2 diabetes requiring daily insulin and is the sole breadwinner for a family living in penury during his incarceration; Petitioner No. 1 is a 75-year-old senior citizen.
  • There is no risk of evidence tampering, since the relevant FSL report is already on record, and prosecution witnesses are all official and unlikely to be influenced.

Respondent's Arguments

  • The offence falls within the commercial-quantity threshold, attracting the rigours of Section 37 of the NDPS Act; if released, Petitioner No. 2 in particular poses a flight risk.

Court Order / Findings

  • The Court found the reasons for continued custody — chiefly the failure to produce purchase bills for the disputed batch — did not justify further incarceration, especially once a charge-sheet had been filed and trial was proceeding slowly (none of twenty prosecution witnesses examined yet).
  • It noted the offence alleged was non-violent in nature, and found a reasonable ground to believe the petitioners may not ultimately be found guilty.
  • Considering the petitioners' age, medical condition, and lack of criminal antecedents, the Court granted regular bail to Petitioner No. 2 and made the earlier interim bail of Petitioner No. 1 absolute, both till conclusion of trial, with liberty to the prosecution to seek cancellation if either petitioner is found involved in any offence while on bail.

Important Clarification

The GST returns here served only as one piece of corroborating evidence supporting the petitioners' claim of a legitimately run, properly accounted pharmacy business — the Court did not examine, and was not asked to examine, any question of GST law or compliance. This remains, at its core, an NDPS Act bail decision turning on personal circumstances and the nature of the evidence against the accused.

Sections Involved

  • Narcotic Drugs and Psychotropic Substances Act, 1985 — Sections 21(C), 22(C), 29 and 37 (commercial quantity)
  • Code of Criminal Procedure, 1973 — bail provisions

Decision – In Favour of

Allowed in favour of the petitioners — regular bail was granted to Petitioner No. 2 and the interim bail of Petitioner No. 1 was made absolute, both pending trial.

Case Details

  • Court: High Court of Punjab and Haryana at Chandigarh
  • Case No.: CRM-M-14358-2023 (O&M)
  • Neutral Citation: 2023:PHHC:115982
  • Coram: Justice Arun Monga
  • Date of Order: 04.09.2023

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