✦ High Court of India · 28 Jun 2013

Naresh Kumar Rastogi …..……… v. State of Jharkhand through Vigilance

Case Details

IN THE HIGH COURT OF JHARKHAND AT RANCHI Cr.M.P. No. 896 of 2012 Naresh Kumar Rastogi …..………… Petitioner Versus State of Jharkhand through Vigilance…………… Opp. Party Coram: The Hon’ble Mr. Justice R.R.Prasad …… For the petitioner For the Vigilance ……

Legal Reasoning

: Mr. Ananda Sen, Advocate : Mr. Shailesh, Advocate

Decision

…… O R D E R C.A.V. On 21/06/2013 Delivered on 28/06/2013 /28.06.2013 This   application   has   been   filed   for   quashing   of   the   entire criminal proceedings of Vigilance P.S. Case No. 22 of 2003 (Special Case No.   24/2003),   including   the   order   dated   16/11/2011,   passed   by   the Special Judge, Vigilance, Ranchi, whereby and whereunder cognizance of the offence punishable under Sections 420, 409, 467, 468, 471, 477A, 120 B of the Indian Penal Code and also under Section 13 (1) (d) read with Section 13 (2) of Prevention of Corruption Act, 1988, has been taken against the petitioner and others. 2. The case of the prosecution is that when a complaint was made to   the   Vigilance   that   several   irregularities   have   been   committed   by ACMO,   Dumka,   in   the   matter   relating   to   the   purchase   of     medicines, appliances and instruments for the year 2000­2001 and 2002, inquiry was   made   and   during   inquiry   certain   irregularities   were   found   in   the matter of purchase of those materials and, hence,     a first information report   was   lodged,   which   was   registered   as   Vigilance   P.S.   Case   No. 22/2003   (Spl.   Case   No.   24/2003)   alleging   therein   that   the   suppliers including   the   petitioner   has   supplied   the   medicines,   implements   and appliances etc. on the rate excess than the fixed rate by the Purchase Committee and, thereby,   the accused persons in conspiracy with each other, put the State exchequer to a great loss. So   far   as   petitioner   is   concerned,   who   happens   to   be   the proprietor of M/s Rahul Distributors, Ranchi, it has been  alleged that the petitioner under the supply order dated 20/11/2001, had supplied the   medicine,   i.e.   Cloxacillin   Capsules   @   Rs.   288/­   per   hundred capsules, whereas the rate had been fixed by the   Purchase Committee @ Rs. 250/­ per hundred capsules. On   submission   of   charge   sheet,   cognizance   of   the   offence punishable under Sections 420, 409, 467, 468, 471, 477A, 120 B of the Indian Penal Code and also under Section 13 (1) (d) read  with   Section 13   (2)   of   Prevention   of   Corruption   Act,   1988,   was   taken   against   the petitioner   and   others   vide   order   dated   16/11/2011,   which   is   under challenge. 3. Mr.   Ananda   Sen,   learned   counsel   appearing   for   the   petitioner submits that in terms of the Government policy as communicated under Memo   No.   280   (5)/Swa.   Dated   31/07/2001,   ACMO,   Dumka,   placed order to M/s Rajasthan Drugs & Pharmaceuticals Limited, a Government company for supply of the medicines Cloxacillin. On receipt of the supply order, the company asked this petitioner, the proprietor  of M/s Rahul Distributors,   Ranchi,   the   marketing   agent   of   Rajasthan   Drugs   & Pharmaceuticals   Limited,   to   supply   the   said   medicines   at   the   rate approved by the company, which was supplied  by the petitioner. Still, the petitioner is being prosecuted on the allegation that the petitioner did supply the medicines and charged excess rate, whereas it was available at   much   lowest   rate,   which   allegation   is   misconceived   in   view   of   the policy taken by the then State of Bihar under letter dated 18/02/1999 and,   subsequently,   by   the   State   of   Jharkhand   vide   Memo   No.   280 (5)/Swa. Dated 31/07/2001 stipulating therein that the medicine, which is being manufactured by the Government company is to be purchased directly from the company, which was done in this case and, as such, even if the rate of medicines supplied was found to be excess than the rate fixed by the Purchase Committee, the petitioner cannot be said to have committed any illegality as whatever was done, that was done in terms of the Government policy. 4. Mr.   Shailesh,   learned   counsel   appearing   for   the   Vigilance submits that the Purchase Committee, which was formed for purchasing the medicines for the years 2000­2001 and 2001­2002 had approved the rate of medicines to be purchased. The rate, which had been approved for  Cloxacillin capsules  was Rs.  250.20  per  hundred  capsules  but  the petitioner did supply @ Rs. 288/­ per hundred capsules. It was further submitted  that  during investigation, it was found that  the potency  for minimum   period,   i.e.   18­24   months   from   the   date   of   supply   was   not followed as it was found that supply was made on 15/01/2002, whereas the medicines were to be expired in April, 2003. It was also submitted that the petitioner had earlier been operating through M/s Purshottam Pharmaceuticals,   Patna   but   the   said   firm   was   black   listed   by   the Government   of Bihar  on  07/11/2000  and,  thereby,   the  petitioner  was not supposed to act as stockist for any Government company. But the petitioner   ignoring   this,   started   operating   in   the   name   of   M/s   Rahul Distributors. 5. As   against   this,   learned   counsel   appearing   for   the   petitioner submitted   that   the   medicine,   which   was   supplied,   was   having manufacture date as November, 2001 and date of expiry was April, 2003 and   the   said   medicine   was   supplied   on   02/01/2002   and,   as   such, nothing wrong was done and moreover, this has never been the case of the prosecution nor it can be the subject matter of criminal prosecution, and that if any order adverse to the interest of the petitioner was passed that as per the counter affidavit it had been passed by the State of Bihar and not by the State of Jharkhand. Further, it was submitted that in the purchase order itself the rate of medicine was quoted and, accordingly, the medicine was supplied by the petitioner an authorized stockist of the Rajasthan   Drugs   and   Pharmaceuticals   Limited,   Government   of   India enterprises, which is absolutely in terms of the government policy and, thereby, any prosecution under the circumstances would be abuse of the process of the Court. It was further submitted that almost   on   similar allegation,   one   Vigilance   Case   bearing   Vigilance   Case   No.   2/2004   was lodged  against   the     petitioner,  but  the   I.O.,   during   investigation,   after taking notice of the Government policy, did find the case relating to the petitioner as mistake of fact and, hence, submitted final form. 6. In the context of the submissions, one needs to take notice of the   said   letter   as   contained   in   Memo   No.   280   (5)   Swa.   Dated 31/07/2001. From its perusal it does appear that on 27/03/2000, the Purchase   Committee   under   the   Chairmanship   of   Divisional Commissioner,   Chhotanagpur   Division,   on   the   basis   of   the   quotations received   from   different   suppliers,   fixed   the   rate   of   the   medicines, appliances, machines, instruments etc. At the same time, decision had also been taken that the medicine, which is being manufactured by the Government company, is to be purchased directly from the company. Putting   emphasis   rather   placing   reliance   on   that   part   of   the decision taken in the meeting, plea is being taken that when the items as aforesaid, manufactured by the Government company Rajasthan Drugs and   Pharmaceuticals   Limited,   was   supplied   by   the   petitioner,   an authorized   distributor   of   the   company,   under   the   supply   order,   the petitioner did not do anything wrong. That plea gets substantiated from the   said   policy   decision   wherein   it   is   quite   specific   that   the   medicine manufactured by the Government enterprises is to be purchased directly from   the   company.   In   the   instant   case,   Cloxacillin   capsules manufactured by the Rajasthan Drugs and Pharmaceuticals Limited, has been supplied by the petitioner when the supply order was placed before the company and on getting supply order, the petitioner was authorized by the company to supply the medicine at the rate, which had already been communicated by the company to different authorities of the Health Department and, thereby, even if the rate is higher than the rate fixed by the   Purchase   Committee,   one   cannot   be   said   to   have   committed   any offence   as   whatever   was   done   that   was   done   under   the   policy   of   the Government.  In such situation, any prosecution of the petitioner would amount to abuse of the process of the Court. 7. Accordingly, the entire criminal proceeding of Vigilance Case No. 22   of   2003   (Special   Case   No.   24/2003),   including   the   order   taking cognizance, is hereby quashed. In the result, this application stands allowed. Mukund/cp.3 (R.R.Prasad, J)

This is the original judgment text as indexed from the source corpus. Always verify against the official court record before relying on it in a filing — you can do so on eCourts or the Supreme Court of India website. ← Search more judgments