Madras High Court Orders Status Quo On Online Sale Of Drugs Till Finalisation Of Draft Rules, Asks Govt To Ensure Sale Only Through Licensed Chemists

Justice SM Subramaniam and Justice C Kumarappan took note of the Government's submission that it was in the process of finalizing a new policy. The court directed the Union Government and the Central Drugs Standard Control Organisation to expedite and finalize the police and notify the same.

Till such time, the court ordered status quo on the condition that online sale of drugs must be made only through or by licensed Druggists and Chemists. The court directed the competent authorities to initiate appropriate action against the individual offenders in the manner known to the law. The court noted that the policy will have far-reaching consequences and the Government would have to consider various issues raised by the stakeholders.

“Since the Delhi High Court seized of the matter and the Government of India is in the process of finalizing a new policy and to avoid inconsistency in dealing with the issues, which are all identical, we are inclined to dispose of the matter. More-so, the policy to be framed may have far reaching consequences and the Government of India has to consider various issues raised between the drug companies, stakeholders and public in general,” the court observed.

The court was hearing an appeal preferred by Practo Technologies and other similar companies against a 2018 order of a single judge wherein the single judge had directed the Union Government to notify the proposed Drugs and Cosmetics Amendment Rules 2018 at the earliest. The single judge had directed that the stakeholders trading in online pharmacies have to obtain respective licenses in the manner prescribed in the Rules to be notified and restrained them from proceeding with their business till the new rules were notified.

During the appeal, N Ramesh, Central Government Standing Counsel informed the court that the process of finalizing the draft rules was in progress. He added that the new comprehensive policy would cover all issues raised between the traders and the public at large. He added that since the issues involved are complex, the Government would require more time to finalize the policy.

The court was also informed that the Delhi High Court was also seized of the matter and had given 4 months to the Joint Secretary, Ministry of Health and Family Welfare to finalize the policy.

The respondents argued that the online sale of drugs was causing concern to the public at large. They argued that the druggists were selling drugs online in an unregulated manner which was unsafe and may result in health hazards.

To this, the online pharma companies submitted that the drugs sold through online mode are sold by licensed Druggists and Chemists. The companies assured the court that the drugs and cosmetics were routed through licensed traders and in case of complaints, appropriate action was initiated against the individual offenders.

Considering all the submissions and taking note of the fact that the Delhi High Court was seized of the matter, the court disposed of the petition giving liberty to the Tamil Nadu Chemists and Druggists Association to work out their remedy in the manner known to law.

Counsel for the Petitioner: Mr.Arjun Suresh

Counsel for the Respondent: Mr.Vijay Narayan Senior Counsel for Mr.A.Ramesh Kumar, Mr.M.S.Krishnan Senior Counsel for Mr.Ankur Khandelwal for M/s Kochhar and Co., Mr.S.K.Chandrakumar, Mr.N.Ramesh, Mr.K.Tippu sulthan Government Advocate, Mr.Thriyambak Kannan, Mr.Naveenkumar Murthi for Ms.S.Varsha

Citation: 2024 LiveLaw (Mad) 269

Case Title: M/s.Practo Technologies Pvt.Ltd v The Tamil Nadu Chemists and Druggists Association and Others

Case No: W.A.Nos.2807 to 2810, 2814 & 2818 of 2018