(Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus directing the 1st respondent to take up the Appeal bearing Representation dated 24.12.2025, give an opportunity of personal hearing to it and pass orders on merits within the time that may be fixed by this Court and direct the respondents to keep the Order bearing No.DDC/NCL/SO/2025-12/1510 dt.22.12.2025 passed by the 2nd respondent in abeyance till such disposal and pass orders.)
1. The writ petition has been filed for the following relief:
“To issue a Writ of Mandamus directing the 1st respondent to take up the Appeal bearing Representation dated 24.12.2025, give an opportunity of personal hearing to it and pass orders on merits within the time that may be fixed by this Court and direct the respondents to keep the Order bearing No.DDC/NCL/SO/2025-12/1510 dt.22.12.2025 passed by the 2nd respondent in abeyance till such disposal and pass orders.”
2. The case of the petitioner is that it is a Public Limited Company engaged in the business of manufacturing and selling “Empty Hard Gelatin Capsule Shells and “Empty Hard Cellulose Capsule Shells’ to the pharmaceutical industries, under a registered licence. They have, as their clientele, over 300 pharmaceutical manufacturing companies and distributors/traders in India and are exporting their products to over 25 countries all over the world. They have commenced their business in the year 2003. The petitioner is also providing direct employment to about 250 persons, which includes women, and indirect employment to about 2000 persons.
3. M/s.Golden Capsules Ltd., is one among their purchasers and it had obtained its licence from the second respondent in the year 2007. It had its units, both at Sokkanathanpet, Puducherry as well as at Mettupalayam, Puducherry. It had placed orders with the petitioner for supply of Empty Capsule Shells. The petitioner had raised invoices for the supplies made by them to both the units of Golden Capsules Ltd., The petitioner would further submit that its business transactions with Golden Capsules Limited which started from 2007 continued till September 2024 and thereafter, there was no business dealings from October 2024 to date. Except for the supply of Empty Capsule Shells, the petitioner has no other dealings with the said M/s.Golden Capsules Ltd.,
4. Be that as it may, on 01.09.2025, the officials of the Central Drug Authority and the Department of Drugs Control, Puducherry had inspected the premises of the Golden Capsule Shells and on enquiry, they found that M/s.Golden Capsules Ltd., has a licence to store the Empty Capsule Shells only at its unit at Sokkanathampet, Puducherry and not at Mettupalayam, Puducherry. On the same day, the said authorities have inspected the premises of the petitioner and same was informed to them.
5. The petitioner would submit that they were intimated by the Golden Capsules Limited about the change of its registered address at Mettupalayam, vide its emails dated 03.05.2018 & 24.05.2018. Hence, the petitioner was under the impression that by following the due procedure under law, the Golden Capsules Company had its registered unit at Mettupalayam, Puducherry also.
6. The petitioner would further submit that the Department of Drugs Control has not made the Drug Licence Number and its period of validity available online. Since there is no mechanism available to verify the validity of the Drug Licence issued to their purchasers online, the petitioner was not in a position to verify the same, before effecting its supplies to their purchasers. It was only when the respondents had informed the petitioner that the said Golden Capsules Limited did not possess the requisite Drug Licence, they have come to know about the anomaly. 4/9 This information was received by the petitioner only 01.09.2025 and thereafter, from 02.09.2025, onwards they had stopped their supplies to the said company. On the same day i.e., on 02.09.2025, the petitioner company lodged a police complaint with the Reddiarpalayam Police Station, calling for an action against the Golden Capsules Limited. The petitioner had also addressed a letter to the second respondent on 03.09.2025, informing them about the said fraudulent acts of the Golden Capsules Company and had also assured to extend their cooperation during investigation. There was no response on the said letter.
7. Be that as it may, on 18.12.2025, the second respondent had issued a show cause notice to the petitioner-company accusing them of having effected sales of Empty Gelatin Capsules to the unlicensed premises of M/s.Golden Capsules Company, for the past five years and contending that the petitioner has violated the conditions of licence and had contravened the provisions of Drugs and Cosmetics Act, 1940. The second respondent had called for an explanation from the petitioner company. Immediately, the petitioner had submitted its reply on 22.12.2025.
8. Despite receiving the reply notice from the petitioner, the second respondent, without hearing the petitioner, had passed the order dated 22.12.2025, suspending the petitioner’s licence with immediate effect. Aggrieved by the impugned order, the petitioner preferred an appeal to the first respondent on 24.12.2025. However, the appeal has not been considered to date. The petitioner would submit that on account of the closure of its unit, not only are their employees without employment, but they are also unable to honour their purchase orders and is facing huge financial crisis. Hence, seeking a remedy, the petitioner is before this Court.
9. When the matter was taken up for hearing on 06.01.2026, this Court had directed the respondents to submit the details as to the action that they have taken against the said Golden Capsules Limited. Today, the documents have been filed before the Court, which on perusal, shows that criminal proceedings have been initiated against the said Golden Capsules Limited. It is to be further noted that the supply to the said Golden Capsules Limited to its unit at Mettupalayam, Puducherry, alone is found to be illegal as the other unit has the requisite licence. Therefore, the order suspending the petitioner’s licence appears to be harsh.
10. However, considering the limited request of the petitioner and also considering the fact that substantial financial loss is being suffered by the petitioner, the writ petition is disposed of with a direction to the appellate authority, namely, the first respondent herein, to consider the appeal preferred by the petitioner and to pass orders within a period of ten days from today, after giving an opportunity to the petitioner to appear in person and present its case. The petitioner has sought for recalling the suspension order as a consequential order. The counsel appearing for the respondent would however submit that CBI enquiry has been ordered with reference to the above issue and the same is under process. Therefore, the said request of the petitioner shall await the decision of the appellate authority. No costs. Consequently connected miscellaneous petition is closed. The compliance of the order of this Court shall be reported on 19.01.2026.




