P a g e 1 | 23

IN THE HIGH COURT OF MANIPUR

AT IMPHAL

BAIL APPLICATION NO. 34 OF 2023

Mehul Desai, aged about 48 years, S/o Manubhai Desai, a resident of

4/26, the Nest residency, Near Shrusti Banglows, Shastri Road,

Dhamdod, Lumbha, Surat, Gujarat - 394355.

…. Petitioner

- Versus -

The Union of India, represented by the Narcotics Control Bureau

(NCB), through its Intelligence officer, Narcotics Control Bureau,

Imphal, CPWD Quarters, Changangei, Kongba Uchekon, 795008,

Imphal West, Manipur.

…. Respondent

B E F O R E

HON'BLE MRS. JUSTICE GOLMEI GAIPHULSHILLU

For the petitioner : Mr. Leo Rommel, Advocate

For the respondent : Mr. W. Darakishore , Senior PCCG

Date of hearing : 05.09.2024

Date of order : 13.12.2024

KHOIROM

BIPINCHAN

DRA SINGH

Digitally signed by

KHOIROM

BIPINCHANDRA SINGH

Date: 2024.12.13

16:55:39 +05'30'

P a g e 2 | 23

JUDGEMENT & ORDER

(CAV)

[1] Heard Mr. Leo Rommel, learned counsel appearing for the

petitioner and Mr. W. Darakishwor, learned senior PCCG appearing for

the respondent at length.

[2] The present Bail Application has been filed under section

439 Cr.P.C., r/w Section 37 ND & PS Act praying for releasing the

petitioner on bail in connection with the Special Trial Case (NDPS) No.

26 of 2023 with reference NCB Crime No. 02/NCB/Imp/2023, dated

03.03.2023 U/s 8(c) & 9A to be read with Sec. 21 (c), 25A, 25 & 29 of

the ND & PS Act, 1985 with the following prayer;

“(i) to pass an order for releasing the petitioner on bail in

connection with the Special Trial Case (NDPS) No. 26 of

2023 with reference NCB Crime No. 02/NCB/Imp/2023,

dated 03.03.2023 U/s 8(c) & 9A to be read with Sec. 21

(c), 25A, 25 & 29 of the ND & PS Act, 1985

.

(ii) to pass any further order or any

appropriate/order/direction in the facts and

circumstances of the case.”

[3] The case of the petitioner (Accused/Petitioner) is that he

was arrested on 05/08/2023 along with one co-accused (namely

Harshal Desai) by a team of Narcotics Control Bureau (NCB) on the

strength of a NCB Crime No. 02/NCB/Imp/2023, dated 03.03.2023 with

an allegation of generating fake/ bogus billing of various

Pseudoephedrine content drugs in the name of M/s Recover Health

Care as per statement given by the Accused No. 3 (Bhadresh Patel).

Thereafter they were produced before the Ld. Addl. CJM, Bardoli, Surat,

P a g e 3 | 23

Gujarat thereafter they were transit remanded for 7 days and they were

finally produced before this Hon’ble Court on 09.08.2023 and was

remanded into custody till today.

[4] Learned counsel for the petitioner submits that the

accused/petitioner (Mehul Desai) is the former Director of the Ardor

Drugs Pvt. Ltd and he is only a salaried employee of M/S Ardor Drugs

Pvt. Ltd. As per the statement of accused No. 3 namely Bhadresh Patel

(who is the Director of M/s Recover Health Care), supplied 1500

packets each containing 1000 tablets of Pseudoephedrine out of which

533 packets actually seized by the team of NCB Imphal on 03.03.2023

from the house of Jangminthang Guite mother of accused No. 2.

Thereafter, Bhadresh Patel supplied the Pseudoephedrine contents

tablets to accused no. 1 namely Abdul Wakil without having any drug

license or valid documents for which he accepted an amount of Rs.

11.68 lakh in his Bank of Baroda A/c. Thereafter, Bhadresh Patel in

connivance with Harshal Desai, Director of Ardro Drugs Pvt. Ltd., Tapi,

Gujarat received the consignment of Pseudoephedrine tablets in the

brand name of Phifed tablets and bill was generated in the name of

Admos SR (A non NDPS content drug) on receiving instruction from

accused no. 1 namely Abdul Wakil. He further submits that according to

the statement of accused No. 3 i.e. Bhadresh Patel (owner of Recover

Healthcare Pvt. Ltd.), Ardor Drugs Pvt. Ltd. used to generate bogus

bill/tax invoices in the name of Recover Healthcare Pvt. Ltd. and never

P a g e 4 | 23

actually supplied these drugs to M/s Recover Healthcare, Ahmedabad

except for the 15 lakhs Phifed tablets containing Pseudoephedrine HCI

which were supplied to him under bogus tax invoice generated for

ADMOS SR tablets. Bhadresh Patel has also stated that he used to get

commission of Rs. 1 for a strip of ten tablets of Pseudoephedrine for

accepting bogus billings/tax invoices. Accused No. 3 Bhadresh Patel

further alleged that the petitioner in connivance with Harshal Desai

generated fake/bogus billing of various Pseudoephedrine content drugs

in the name of M/s Recover HealthCare and actually never supplied any

drugs to M/s Recover HealthCare.

[5] Learned counsel for the petitioner submits that in

connection with NCB Crime No. 02/NCB/Imp/2023, dated 03.03.2023

U/s 8 (C) & 9A to be read with Sec. 21 (C), 25A, 25 & 29 of the ND &

PS Act 1985, the I.O of the case has submitted Charge sheet thereafter

again submitted additional Complaint before the Court of Ld. Special

Judge, ND & PS, Manipur being Additional Complaint u/s 173 (8) Cr.P.C

for commission of Offence u/s 9 A and punishable u/s 25 A and 29 of

the NDPS Act, 1985 (as amended) on 03.10.2023 against the two

accused persons namely (i) Mehul Desai (the present petitioner) and (ii)

Harshal Desai. The petitioner has been arrayed as accused No. 6 in the

said Special Trial Case (NDPS) No. 26 of 2023 and the present stage of

the said trial case is for Charge Hearing. The petitioner filed a bail

application before the Court of Special Judge, ND & PS, Manipur under

P a g e 5 | 23

Cril. Misc (B) Case No. 128 of 2023 praying for releasing him on bail in

various grounds. However, the Ld. Special Judge (ND & PS), Manipur

rejected the bail application of the petitioner on 30.11.2023. He further

submits that the petitioner is absolutely innocent of the charge leveled

against him in connection with Special Trial Case (NDPS), No. 26 of

2023 with reference to NCB Crime No. 02/NCB/Imp/2023. He further

submits that the accused/petitioner had already resigned from the

Ardor Drugs Pvt. Ltd. on 23

rd

Aug. 2021 and the accused/petitioner had

no access and not aware of the whereabouts and bill/invoices.

[6] Learned counsel for the petitioner submits that the NCB,

Guwahati along with the Intelligence Officer (IO) Narcotics Control

Bureau (NCB) Ahmedabad Zonal Unit and their team members have

already carried out search and possible seizure in the factory of M/S

Ardor Drugs Pvt. Ltd. and prepared PANCHANMA on two consecutive

day’s i.e. from 11.05.2023 to 12.05.2023 and the accused/petitioner

has always Co-operated with the investigating agency in the course of

investigation. Even much prior to his arrest a joint team of NCB Imphal,

NCB Guwahati and NCB Gujarat has investigated the case and searched

the factory premises of M/S Ardor Drugs Pvt. Ltd and statement of the

accused/petitioner were also recorded twice at that time. Panchanma

was also drawn in his presence. He further submits that ban under

Section 37 of NDPS Act would not apply to the accused/petitioner since

he is charged for the offence u/s 9 A, 25 A and 29 of the NDPS Act and

P a g e 6 | 23

Section 37 apply to the case u/s 19. 24 and 29 of the NDPS Act only

and not to any other section. He further submits that the statement of

the accused/petitioner himself and Harshal Desai recorded after their

arrest are not u/s 67 of the NDPS Act since their statement are

recorded after their arrest and therefore the same cannot be termed as

statement u/s 67 of the NDPS Act since Article 20(2) of the constitution

of India would be attracted and therefore one can never be compelled

to be witness against himself.

[7] Learned counsel for the petitioner submits that the

accused/petitioner Mehul Desai is only a salaried employee of M/S

Ardor Drugs Pvt. Ltd. and was just following the command of his boss

and performed his duties as per instructions of his boss, hence he

cannot be said liable for any act or omission on part of the company or

its Director. The company M/s Ardor Drugs Pvt. Ltd. is having legal and

valid license for such controlled drugs and the company has never

breached any conditions of license, since the license of the company

has never been revoked or suspended till date. On the contrary, the

Government has recently renewed the same without any difficulties and

licensing authorities has never issued any notice upon the company.

The company M/s Ardor Drugs Pvt. Ltd. had supplied official medicine

to the another license holder company (Recover Health care of Mr.

Bhadresh Patel Accused No. 3) that too by official GST paid invoices

and e-way bill. But it is the Recover Health care company (of Mr.

P a g e 7 | 23

Bhadresh Patel Accused No. 3) which has allegedly supplied goods to a

person Mr. Abdul Vakil Accused No. 1 who was not license holder.

Hence, the company in which accused/petitioner is working has not

done anything wrong, illegal or contrary to the law. He further submits

that the petitioner/accused has been falsely implicated as an accused in

the case and the personnel liberty guaranteed to the petitioner under

Article 21 of the Constitution of India cannot be deprived by falsely

implicating the petitioner in connection with the Special Trial Case

(NDPS) No. 26 of 2023 with reference to NCB Crime No

02/NCB/Imp/2023.

[8] Learned counsel for the petitioner further submits that the

petitioner is praying for releasing him on bail as he was arrested on

05.08.2023 and remanded into custody till today. Charge sheet has

been submitted by the investigating authority on 24.07.2023. However,

charge has not been framed against the petitioner till date. He further

submits that nothing incriminating or contraband has ever been found

from the premises of M/S Ardor Drugs Pvt. Ltd. nor found from the

direct, indirect or constructive possession of Petitioner Mehul Desai or

Harshal Desai. The material is found and seized from the house of

Jangminthang Guite of Imphal (Manipur) which is not having any

connection or nexus with the applicant (Petitioner) Mehul Desai who is

resident of Gujarat State. The accused/petitioner is an innocent and has

nothing to do with the alleged offence in connection with the charge of

P a g e 8 | 23

Spl. Trial (NDPS) Case No. 26 of 2023. The allegation against the

petitioner are that 110.5 Kg (gross) of white Color loose tablets

believed to be Pseudoephedrine were seized from one person namely,

Jangminthang Guite. Such allegation cannot be presumed on its fact

value that were supplied by the petitioner and would always remain

subject matter at Trial Court during trial.

[9] Learned counsel for the petitioner further submits that the

statement of Bhadresh Patel (Accused No. 3) is not admissible in

evidence in view of the provision of Section 25 and 26 of the Indian

Evidence Act and more particularly in view of recent judgment of larger

bench of the Hon'ble Apex Court in the case of Toofan Singh vs. State

of UP. Except statement of Bhadresh Patel (Accused No. 3) and his two

employees (two employees are also accused in very case) there is no

other material available which may even remotely connect the

petitioner/accused Mehul Desai with the alleged offence. If we exclude

the statements of Bhadresh Patel (Accused No. 3) and his two

employees then nothing remains against the petitioner/accused Mehul

Desai which can be said a prima facie material against him and the

material seized is neither Narcotics nor Psychotropics Substances. But,

it is only a controlled drug for which the company M/s Ardor Drugs Pvt.

Ltd. is having a legal and valid license. Further, the material seized is

neither Narcotics Drugs nor Psychotropics substance; hence the

classification of small quantity, moderate quantity and commercial

P a g e 9 | 23

quantity etc. would not be applicable to the case of the

petitioner/accused. The Petitioner filed bail application before the

concerned Court being under Cril. Misc (B) case No. 128 of 2023

praying for releasing him on bail; however, the bail application was

rejected by the Ld. Special Judge (ND&PS) Manipur on 31/11/2023.

Charge sheet has been submitted in connection with the said FIR Case

and registered as Special Trail Case (NDPS) No. 26 of 2023 Ref. NCB

Crime No. 02/NCB/Imp/2023, dated 03.03.2023 and the present stage

of the said trail case is for charge hearing. Hence, the present Bail

Petition.

[10] Learned counsel for the petitioner relied upon the

following Judgments:

1. Sunil Fulchand Shah Vs. Union of India, AIR 2000

SC 1023;

2. State of U.P. through CBI Vs. Amarmani Tripathi,

(2005) 8 SCC 21: AIR 205 SC 3490;

3. Kalyan Chandra Sarkar Vs. Rajesh Ranjan @ Pappu

Yadav & Anr, (2004) 7 SCC 528: 2004 SCC (Cril)

1977;

4. Hussainara Khatoon & Ors Vs. Home Secretary,

State of Bihar, Patna, AIR 1979 SC 1360: (1980) 1

SCC 81;

5. 2024 SCC Online SC 1920 – [Manish Sisodia Vs.

Directorate of Enforcement]

6. (2012) 1 SCC 40 in Sanjay Chandra Vs. Central

Bureau of Investigation

P a g e 10 | 23

[11] On 22.02.2024, the learned counsel for the respondent

submitted his affidavit-in-opposition on behalf of the respondent

narrating the prosecution story stating that upon receiving a specific

information from a reliable source on 03.03.2023 about illegal storage

of Heroin and Pseudoephedrine in the house of Jangminthang Guite of

Moreh, Tengnoupal, a team of NCB raided the house of Jangminthang

Guite and recovered huge quantity of Pseudoephedrine tablets from the

kitchen of the house including Heroin. The said Pseudoephedrine

recovered weighted around 110.5 Kg and were labeled as –

“CETRIZINE HYDROCHLORIDE TABLETS 10 MG LEVOCET”,

manufactured by Sunview Biotech, Gandhinagar. Accordingly ,

Nemkhohat Guite (mother of Jangmingthang Guite) was arrested on

04.03.2023 and from her confessional statement and reasonable belief

she was booked under NCB Crime No. 02/NCB/Imp/2023 under Section

8(C) & 9A r/w S.21(C), 25A, 25 & 29 of ND&PS Act, by following due

procedure prescribed under the Act. He further submits that in the

follow-up action, as well as from the establishments from the CDRs,

four other accused were arrested by NCB team and resultantly, after

completion of the investigation, final report/complaint against all the

accused persons were submitted on 03.07.2023 before the Special

Judge ND & PS, Imphal, Manipur with the prayer to issue warrant of

arrest against Mehul Desai (the present Petitioner) & 5 other suspected

persons for their gross involvement/conspiracy in transporting

P a g e 11 | 23

Pseudoephedrine to foreign countries in order to manufacture narcotics

drugs i.e. Methapethamine. Subsequently, arrest warrant against the

petitioner Mehul Desai was executed on 05.08.2023 from the residence

of Mehul Desai in presence of his family member at Surat and

thereafter, the petitioner was lodged in judicial custody on 14.08.2024,

accordingly, additional Final report/complaint was also filed against the

petitioner Mehul Desai on 03.10.2023.

[12] Learned counsel for the respondent in his affidavit- in-

opposition mentioned the following involvement of the

accused/petitioner in NCB Crime No. 02/NCB/IMP/2023 u/s 8(C) & 9A

R/W S. 21(C), 25A, 25 & 29 of the ND&PS Act that:

1. The accused/petitioner (Mehul Desai) being one of the

Ex-Directors of M/S Ardor Drug Pvt. Ltd, Ahmedabad,

Gujarat is also one of the masterminds for the entire

modus operandi of this illegal trade business. Very

surprisingly, the Petitioner Mehul Desai has been

receiving a sum of Rs 50,000/- every month from the

M/S Ardor Drug Pvt. Ltd, despite having retired from

the post of Director of the said company.

2. The seized Pseudoephedrine tablets were faked labelled

as "CETRIZINE HYDROCHLORIDE TABLETS 10 MG

LEVOCET" weighing 110.5kg was brought from

Ahmedabad to Moreh via Delhi during the month of

February 2023 in violation of the existing laws in force

under the mastermind of the accused/petitioner

namely Mehul Desai, accused Harshal Desai, Bradesh

P a g e 12 | 23

Patel in conspiracy with the other co-accused. The

accused Mehul Desai is also one of the main king-pin

behind this inter-state trafficking of pseudoephedrine

tablets from Gujarat to Myanmar, he was also one of

the main suppliers who was directly supplying the

drugs to Myanmar through his associates- Harshal

Desai, Bradesh Patel, Abdul Wakil and other co-

accused after misusing the unique registration number

allotted to its company Ardor Drugs Pvt. Ltd., in lure

of earning more money by diverting Pseudoephedrine

to illicit channel.

3. The accused/petitioner (Mehul Desai) is involved in the

connivance with Harshal Desai and Bradesh Patel for

generating bogus bill of various pseudoephedrine

tablets. For such prior offences they had already been

arrested by the Directorate of Revenue Intelligence,

Surat under Crime No. 1 of 2020 and they were on

bail during the execution of arrest of warrant issued

by the Special Judge ND&PS, Manipur.

4. The accused/Petitioner (Mehul Desai) himself admitted

in his statement that he had delivered the

consignment of Pseudoephedrine Tablets as per the

direction of Harshal Desai to the tempo driver namely,

Videsh Bhai Patel on 19.01.2023 for further delivery to

M/S Recover Healthcare in Ahmedabad.

5. The accused/Petitioner (Mehul Desai) in connivance

with Harshal Desai generated fake/bogus billing in

various Pseudoephedrine content drugs in the name of

M/S Recover Healthcare, Ahmedabad and actually he

never supplied any drugs to M/S Recover Healthcare

for which he deposited an amount of Rs. 10 lakhs to

P a g e 13 | 23

the account of M/s Recover Healthcare as a

commission against generating fake/bogus billings.

6. The accused/petitioner mastermind the entire modus

operandi of the above illegal trade by performing

himself as an experience aid of Harshal Desai and the

company online registration of filing GST and TDS is

done in his mobile number in which OTP is generated

through his mobile number. Further M/s Ardor

company email ID is still being run in his (Mehul

Desai) name.

7. There has been similar kind of seizure of 13 Lakh

Pseudoephedrine tablets affected in Sagaing Region of

Myanmar in August 2020. Again 39 lakhs of

pseudoephedrine tablets in the brand Colzen

containing Pseudoephedrine were seized in Champai,

Mizoram in March 2023.

8. The seized Pseudoephedrine tablets is not only

controlled medicine, but it is the main raw material for

processing of Methamphetamine (ATS)- a banned

drug in neighbouring country Myanmar. And as said

earlier also, it is a cause of concern for National

Security.

9. The seized 533 packets in the present case are the part

of 1500 packets of Pseudoephedrine tablets that was

manufactured by Ardor Drugs Pvt. Ltd., Songadh,

Tapi. The rest 967 packets got succeeded to go

through Moreh border to Myanmar. Thus, this case is

also having international linkage.

10. The present Petitioner is also one of the main kingpin

who has diverted the huge quantity of

Pseudoephedrine tablets into illegal channel which has

P a g e 14 | 23

somehow crossed Myanmar border either from

Mizoram side or Manipur side.

11. The accused/petitioner (Mehul Desai) has criminal

antecedents and he is on bail in NDPS case No.

48/2020 registered at Principal District and Session

Court, Surat, Gujarat.

12. This is the crime committed by the petitioner while

being released on bail in connection with NDPS case

no. 48/2020 registered at Principal District and

Session Court, Surat, Gujarat which was initiated by

DRI Surat and final complaint/charge-sheet has been

filed by DRI Surat and presently the case in under

trial.

13. The accused/Petitioner Mehul Desai and accused

Harshal Desai generated fake tax invoice but not

delivered any drug to M/s Recover Healthcare which is

already proved with the statement of the accountant,

Kriti Patel of M/s Recover Healthcare.

14. There are still various new aspects which are yet to be

explored to ascertain the further linkage or the source

of the seized 110.5 kg of Pseudoephedrine tablets,

which will not be possible if the accused is granted

bail at this juncture.

15. During the course of investigation, house search at the

residence of Nitin Panchal (one of the accused in the

case from Gujarat) was conducted by NCB and

recover some documents of M/s Elite medical store,

Aizawl which surfaced in the instant case. Follow up

action was conducted at M/s Elite Medical Store,

Aizawl, Mizoram by team NCB, Guwahati on dated

03/11/2023 and statement of the proprietor of M/s

P a g e 15 | 23

Elite store recorded. Accordingly, letter vide NCB

02/NCB/Imp/2023 dated 03.11.2023 to the State Drug

Controller, Mizoram, Aizawl was requested to enquire

and take necessary action as per D&C Act and other

relevant laws against diversion of pseudoephedrine

tablets. Directorate of Health Services-Food & Drugs

Administration wing- Mizoram vide order dated 21

Feb, 2024 cancelled the Drug License of Elite Medical

store.

16. Enquiry conducted at NCB, Ahmedabad on 12.12.2023

regarding details of URN issued to M/s Ardor drug Pvt.

Ltd. Accordingly, letter issued to ZD, Ahmedabad on

dated 19.12.2023 seeking details on the URN issued

by NCB, Ahmedabad. Further, letter was also issued to

the Zonal Director, NCB, Ahmedabad Zonal Unit on

15.03.2024 with a request to cancel the URN of M/s

Ardor Drug Pvt. Ltd. issued by NCB Ahmedabad Zonal

Unit or any other URN issued to the accused.

Previously, NCB, Ahmedabad informed that proposal

for cancellation of URN of M/s Ardor Drug Pvt. Ltd. in

2021 was sent to concerned DDG(R) for violation of

the provision of RCS order 2013 as the company

premises was raided by DRI, Surat, July 2020 and

mismatch in quantities of Ephedrine and

Pseudoephedrine found.

17. The statements of 06 employees of M/s Ardor Drug

Pvt. Ltd. was recorded at NCB, Ahmedabad on

12.12.2023 to 14.12.2023, all the 06 employees have

stated that details of record of procurement/

production/sales/marketing/transportation of

pseudoephedrine/ ephedrine are maintained and

P a g e 16 | 23

control by Harshal & Mehul Desai. All bills/invoices are

generated by Harshal and Mehul which clearly shows

that the employees are made to work as per the

instruction of Harshal and Mehul Desai.

18. Further investigation and financial investigation is

going on to trace and break the chain of illegal trade

considering the gravity of the offense committed by

the petitioner which is serious in nature. Therefore,

considering the key role being played by the accused

in the instant case, mere long incarceration of an

accused in judicial custody should not be a ground to

release the accused on bail as it will frustrate the

whole objective of stringent law laid down by the

parliament to combat illegal trafficking of drugs and

will perpetuate to further crime, the same principle

has been laid in a plethora of cases.

19. Mehul Desai has admitted in his statement during

investigation that he along with Harshal Desai used to

generate tax invoice in the name of M/s Recover

Healthcare but the products mentioned in the tax

invoice were supplied to some other parties. They

repeatedly used to generate false bills with the name

of some other products for the supply of

pseudoephedrine-based tablet to Bradesh Patel to sell

the said Pseudoephedrine tablets. For the said

purpose they paid 10 lakhs as commission to Bradesh

Patel which is corroborated with the bank account

statement.

[13] Learned counsel for the respondent further contended

that the accused Mehul Desai has criminal antecedent and he was on

P a g e 17 | 23

bail in ND&PS Case No. 48 of 2020 registered at Principal District and

Session Court, Surat, Gujarat. While the accused/petitioner was on bail,

he has committed the present offence which is registered under NCB

Crime No. 02/NCB/IMP/2023 under section 8(C) & 9A R/W S.21(C),

25A, & 29 OF ND&PS Act by the NCB, Division Unit Imphal, Manipur.

Because of being a criminal antecedent, the accused/Petitioner (Mehul

Desai) was detained under PITNDPS Act by issuing a detention order

dated 28-02-2024 through the Joint Secretary, Ministry of Finance and

the said detention order was confirmed from the Advisory Board. The

accused/Petitioner had challenged the said detention order dated

28.02.2024 issued by the Government of India, Ministry of Finance

before the Hon'ble High Court of Manipur in WP(Cril) No. 10 of 2024

and Hon’ble Court set aside the detention order vide order dated

26.07.2024 which is reproduced as follows:

“[7] In the present case, the petitioner was already arrested

and kept in judicial custody in connection with the seizure of a

commercial quantity of narcotic drugs and therefore, Section 37

of the Narcotics Drugs and Psychotropic Substance Act, 1985

would have application and grant of bail would be subject to

the stringent conditions provided thereunder. Nothing is

mentioned in the impugned detention order that the detaining

authority has arrived at his subjective satisfaction that the

petitioner is likely to be released on bail. Only in the ground of

detention, the detaining authority merely referred to the fact

that a bail application had been filed without deciding whether

there was a likelihood of the petitioner being released on bail,

notwithstanding the applicability of Section 37 of the ND & PS

Act, 1985 and passed the impugned detention order.

Accordingly, we are of the considered view that the detaining

authority passed the impugned detention order without

application of mind and in a mechanical manner and on this

ground alone, the impugned detention orders are liable to be

quashed and set aside.

P a g e 18 | 23

[9] Having regard to the facts and circumstances of the

present case and for the findings and reasons given

hereinabove, we are of the considered view that the detention

orders passed against the petitioner cannot be sustained.

Accordingly, the impugned Detention Order dated 28.02.2024

and the impugned Confirmation Order dated 14.05.2024 are

hereby quashed and set aside. Further, the petitioner, presently

incarcerated in the Sajiwa Central Jail, Manipur, shall be set at

liberty forthwith unless his continued detention is validly

required in connection with any other cases. With the aforesaid

direction, the present petition is allowed. Parties are to be their

own costs.”

[14] Learned counsel for the respondent relied upon the

following Judgment;

1. 2023 (3) SCR 826 – [WP(Criminal) No. 60 of 2023

– Ritu Chhabaria vs Union of India – Supreme court

of India]

2. (2018) 8 SCC 271 – [Surinder Kumar Khanna Vs

Intelligence Officer Directorate of Revenue

Intelligence

3. Special Leave to Appeal (Crl.) No. 4142/2021

4. WP(Cril.) No. 10 of 2024 – [Mehul Desai Vs NCB –

relevant para no. 4 & 7]

5. (1998) 6 SCC 507 – [PR Despande Vs Maruti

Balaram Haibatti – relevant para no. 5]

6. Bail Application No. 1939 of 2021 of the Hon’ble

High Court of Delhi – [Asante Pinket Owusu Vs NCB

– relevant Para nos. 3, 5, 20, 21 , 22 and 23]

7. (2021) 5 SCC 430 – [Union of India vs Prateek

Shukla relevant para nos. 4, 8.1 to 8.6, 12 and 14]

5. Bail Application no. 5030 of 2012 of the High

Court of Kerala – [Karuthan Ponnaiya & Anr Vs

Senior NCB, State of Kerala – relevant para nos. 5,

8 and 10]

P a g e 19 | 23

[15] Heard the learned counsels for the parties at length and

also perused the application and reply affidavit. The main allegation

against the accused/petitioner are that the present

accused/petitioner is a former director as well as an employee of the

company viz. Ardor Drugs Pvt. Ltd. is that he is actively involved in

an illegal supply of Pseudoephedrine (controlled substance under ND

& PS Act) based tablets to the other accused Bhadresh Patel of M/s

Recover Healthcare. The said Ardor Drugs Pvt. Ltd.

prepared/manufactured pharmaceutical formulations including

Pseudoephedrine containing formulations like Asifed, Phifed etc. and

that the accused was actively involved in an illegal supply of a huge

quantity of Pseudoephedrine based Phifed tablets. Further, it was

alleged that the accused/applicant involved in supplying 15,00,000 of

the said Phifed tablets inside 26 carton boxes to the said accused

namely, Bhadresh Patel, owner of M/s Recover Healthcare on

19.01.2023 under a fake billing of Admos-SR.

Further, it is alleged that the accused/petitioner got

commission of Rs. 1 per strip of 10 tablets of Pseudoephedrine to the

said accused Bhadresh Patel for accepting the bogus billing tax

invoice. Further, it is alleged that as per stock register of the

company, Ardor Drugs Pvt. Ltd. the company purchased a raw

material namely, Pseudoephedrine Hydrochloride powder from one,

GC Chemie Pharmie Ltd., Mumbai, Andheri manufacture of said

P a g e 20 | 23

Asifed, Phifed and a scrutiny of the tax invoices report from the said

GC Chemie Pharmie Ltd. revealed that there was unaccounted

distribution of more than 2 Crores Pseudoephedrine based drugs

(Asifed, Phifed) by the Ardor Drugs Pvt. Ltd.

It is alleged that the accused was actively involved in

supply of said Pseudoephedrine based tablets under bogus bills or by

generating fake bills with the name of some other products and by

actually supplying the products mentioned in the bills/tax invoices in

the name of M/s Recover Healthcare to some other person, for which

an amount of Rs. 10 lakhs was paid to the account of M/s Recover

Healthcare as a commission for accepting fake / bogus bills. It is also

alleged that the Ardor Drugs Pvt. Ltd. used one “Bhavna Roadways”

to show the transportation of drugs to the M/s Recover Healthcare

looked genuine, but in that transportation, it sent only carton boxes

without any medicinal stuffs mentioned in the invoices but filled with

pieces of marbles and scraps to increase the weight. Photographs of

such carton boxes containing pieces of marbles and scraps which

were sent by the Ardor Drugs Pvt. Ltd. to the M/s Recover

Healthcare, having the stickers of Bhavna Roadways are said to have

been produced by one Kirti Kumar Patel (apparently a staff of M/s

Recover Healthcare), whose statement has been recorded under

Section 67 of the NDPS Act. As per his said statement, M/s Recover

Healthcare received only 1500 packetsof Phifed tablets containing

P a g e 21 | 23

Pseuoephedrine, which were sent by the Ardor Drugs Pvt. Ltd. in the

billing of Admos-SR on 19.01.2023 and no other pharmaceutical

drugs from 2020 till 2022 but the relevant record at M/s Recover

Healthcare shows false entry for receipts of other pharmaceutical

drugs Asifed T, Bromofed and Prasma including Phifed from the

Ardor Drugs Pvt. Ltd. when the latter has not actually supplied the

said other drugs.

[16] On further perusal of the pleadings, it is also seen that the

present accused/petitioner was also arrested in connection with

another FIR case for the seizure of more than 15 lakh tablets of

Tramadol and shortage of huge quantity of more than 312 kg of raw

Pseudoephedrine on 08.07.2022 and he is at present released on bail

under NDPS Case No. 48 of 2020 by the Principal District & Sessions

Court Surat, Gujarat.

[17] The Ld. Special Court (NDPS), after hearing the parties,

rejected bail application of the present accused and another, Shri

Harshal Desai and in consideration of the present application, this

Court is of the opinion that the observation made in rejecting the

said bail application needs to take consideration and for the same,

the Para No. 5 & 6 of the impugned order of the Ld. Special Judge

(NDPS), Manipur at Lamphelpat is reproduced herein below:

P a g e 22 | 23

“5. It is settled position of law that the provisions of the

Drugs and Cosmetics Act, 1940 and the Narcotic Drugs and

Psychotropic Substances Act, 1985 are in addition to the

provisions of each other i.e. provisions of both the Acts are

required to be simultaneously complied with in relation to

pharmaceutical bulk drugs and pharmaceutical formulation

which also fall under the ambit of the NDPS Act, 1985, (Mohd.

Sahabuddin & Another Vs. Deshpande (2014) 13 SCC 1). It is to

be noted that mere holding a license under the Drugs and

Cosmetics Act and the Rules framed thereunder does not

provide any immunity from the rigors of the applicability of the

NDPS Act and the Rules framed thereunder.

6. It appears prima facie from the materials on record

including the statement of the witnesses under section 67 of

the NDPS Act, that the accused persons/applicants, who are

admittedly ex-Director/employee and one of the Directors of

the company namely Ardor Drugs Pvt. Ltd., are persons actively

engaged for sale or for distribution of pharmaceutical

formulations, which apparently include drugs and substances

covered under the ambit of the Narcotic Drugs and

Psychotropic Substances Act, 1985 and that they were actively

involved in falsifying the accounts or records of the company by

supplying the said Pseudoephedrine (controlled substance

under ND & PS Act) based Phifed tablets in the name of

another non-offending drug ADMOS-SR under a bogus or

fake bill/tax invoices. It appears prima facie from materials on

record that the two (2) accused persons are actively involved in

trafficking of the said pseudoephedrine based pharmaceutical

drugs. As per record, the stage of the case is production of the

rest of the accused and charge hearing.”

[18] After going through the above observation made by the

Ld. Special Judge (NDPS), Manipur, I am of the considered view that

the Ld. Special Judge’s observation and reasoning in dismissing the bail

application of the accused/petitioner is reasonable enough considering

the seriousness of the allegation made against the present accused.

P a g e 23 | 23

[19] I have carefully examined the entire available records ,

impugned order of the Ld. Special Judge (NDPS), Manipur and

particularly the allegations leveled against the accused as narrated

above. In view of the nature and gravity of the offence, I am not

inclined to allow the present bail application filed by the present

accused/petitioner.

Hence, this application is dismissed with observation that

the Ld. Trial Judge is directed to try and dispose of the case at the

earliest. Liberty is given to the petitioner/accused to approach this

Court, if the Trial Court failed to conclude the trial at the reasonable

time.

JUDGE

FR/NFR

Lucy/Bipin