Single Lab Report Not Enough! Supreme Court Quashes Drug Firm's Blacklisting In Madhya Pradesh

The Supreme Court quashed Madhya Pradesh Public Health Services Corporation Limited's three-year blacklisting of JPEE Drugs and two-year product debarment. Authorities relied on a single laboratory report declaring four medicine batches substandard, without conducting mandatory second-laboratory testing. The batches expired before retesting, prompting the court to overturn the penalties imposed.

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Single Lab Report Not Enough! Supreme Court Quashes Drug Firm's Blacklisting In Madhya Pradesh
Staff Reporter Updated: Monday, October 19, 2026, 10:24 PM IST
Single Lab Report Not Enough! Supreme Court Quashes Drug Firm's Blacklisting In Madhya Pradesh

Single Lab Report Not Enough! Supreme Court Quashes Drug Firm's Blacklisting In Madhya Pradesh | Representative image

Bhopal (Madhya Pradesh): The Supreme Court has quashed the three-year blacklisting of a medicine supplier and the two-year debarment of one of its products by Madhya Pradesh Public Health Services Corporation Limited (MPPHSCL), citing the failure to conduct a mandatory second-laboratory test under tender conditions.

A full bench of Justice Vikram Nath, Justice Augustine George Masih and Justice Sandeep Mehta passed the order. The SC has taken the ground that authorities skipped the mandatory second-laboratory test under tender terms, and batches expired before retesting.

The corporation had acted on a single laboratory report declaring four batches Not of Standard Quality, without drawing the second sample that the tender document made mandatory.

As per the SC order, the appellant, M/s JPEE Drugs, participated in a bidding process. The bid of the appellant firm was accepted for supply of drugs, namely, Ascorbic Acid (Vitamin C) Tablets IP 500 mg and Ethambutol Hydrochloride Tablets IP 400 mg.

A show-cause notice dated Sep 23, 2024, was issued to the appellant firm seeking an explanation as to why it should not be blacklisted on the ground that the drugs supplied by it pursuant to the work order had failed the quality test.

Published on: Tuesday, October 20, 2026, 05:00 AM IST

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