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2024 Supreme(Cal) 553

IN THE HIGH COURT AT CALCUTTA
Ananya Bandyopadhyay, J.
Surendra Kumar Kapur & Ors. – Petitioners
Versus
Pradip Kumar Chakraborty – Respondents
C.R.R. 615 of 2014 With CRAN 6 of 2015 (Old No. CRAN 1759 of 2015)
Decided On : 12-03-2024

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Y.J. Dastoor, Mr. Sabyasachi Banerjee, Mr. Anirban Dutta
For the Respondent: Mr. Raj Dip Ray, Mr. Anindya Sundar Chatterjee

The court found that no individual liability could be established against partners of a firm without evidence showing their control over business operations, and proceedings initiated under a repealed statute are invalid.

Headnote:(A) Prevention of Food Adulteration Act, 1954 - Sections 16(1)(a)(i), 6 and 7 - Food Safety and Standards Act, 2006 - Section 89 - Petitioners challenged a complaint under the PFA Act leading to prosecution for food adulteration - The court found the petitioners not chargeable, as they were not in control of the hotel operations and the complaint, based on outdated legislation, was invalid - The absence of jurisdiction and procedural lapses rendered the case against petitioners maintainable - Criminal prosecution quashed. (Paras 11, 51, 60, 62)

Facts of the case:
The petitioners were partners in a hotel business operated under their deceased elder brother’s management; they were charged with offences under PFA Act after a food inspection yielded improper findings against the 'paneer' served at the hotel. (Paras 3-4, 11-12)

Findings of Court:
The complaint against the petitioners was void, as no prima facie case was established against them, and proceedings initiated under the PFA Act after its repeal by the FSA, 2006 were unlawful. (Paras 31, 51)

Issues: Whether the petitioners were liable under the PFA Act given their lack of involvement in day-to-day management and whether the complaint was valid post the enactment of the Food Safety and Standards Act, 2006. (Paras 11, 62)

Ratio Decidendi: The court emphasized that individual liability under the PFA Act cannot be imposed absent evidence of a person being in charge of business affairs, noting procedural missteps based on the repealed PFA Act undermined the complaint's legitimacy. (Paras 8, 60)

Result: The petitioners' revision application was allowed, leading to the quashing of the ongoing proceedings against them.

Table of Content
1. complaint origins and petitioners' non-involvement. (Para 1 , 10 , 11)
2. insufficient adherence to legal inspection standards. (Para 6 , 27 , 29 , 30)
3. legislative dominance of food safety act over previous laws. (Para 12 , 36 , 37 , 40)
4. invalidity of charges post-repeal of applicable laws. (Para 60 , 61)

JUDGMENT :

Ananya Bandyopadhyay, J.

1. The instant revisional application is preferred against the order dated 12th February, 2014 passed by the Learned 1st Court of Metropolitan and Municipal Magistrate, Calcutta in Case No. 2D of 2010 and for quashing the complaint dated 22nd November, 2010 filed under Section 16 (1)(a)(i) read with Sections 6 and 7 of the Prevention of Food Adulteration Act, 1954 being Case No. 2D of 2010 pending before the Learned First Court of the Metropolitan & Municipal Magistrate, Kolkata.

2. The petitioners were brothers each above 65 years of age.

3. Petitioners were three of the sons of Late Shri Krishan Lal Kapur who during his lifetime was a well known businessman and a permanent resident of Calcutta. The petitioners’ father died on 5 January 1955. The petitioners also had an elder brother whose name was Rajendra Kumar Kapur, who died on 27 November 2013.

4. The petitioners’ father left several businesses one of which was a hotel by the name of Hotel Minerva situated at 11, Ganesh Chandra Avenue, Kolkata700019. After the demise of their father, through inheritance the businesses were operated for over 50 years by co-partnership between the late Rajendra Kumar Kapur, the eldest brother and the three petitioners under the name and style of R.K. Kapoor & Brothers.

5. As professionals in regular practice for decades neither the petitioner No. 1 nor the petitioner No. 3 had been involved in day-to-day basis or otherwise with the conduct of the business or the affairs or the management the hotel business.

6. In or about the year 2000 there were disputes and differences between the brothers regarding the joint businesses and the same were referred to arbitration before the late Dipankar Ghosh, Barrister-at-law & Senior Advocate who was nominated as the Sole Arbitrator.

7. Petitioners stated that by the award dated 29th June, 2001 the Arbitrator adjudicated and declared that the entire business of Hotel Minerva would henceforth be run, operated, and controlled by the eldest brother, the late Rajendra Kumar Kapur. In fact, clause 10.12 of the said award inter alia provides :-

    “However, Rajendra Kumar Kapur shall continue to run and operate the business of Hotel Minerva and perform all executive functions relating thereto including operation of bank accounts”.

8. Petitioners’ stated that it will thus be evident and it was the incontrovertible and admitted position on the basis of the aforesaid unassailable and conclusive records that the entire operations of Hotel Minerva thus came to be exclusively vested in, and were by the award directed to be run, operated, controlled and managed solely by their eldest brother, Late Rajendra Kumar Kapur and such was the actual position from the date of the Award which continued until his death in the month of November, 2013 as aforesaid.

9. Prior to his death the said Rajendra Kumar Kapur was seriously ill and suffering principally from renal failure and other serious medical complications so the actual charge and responsibility for the conduct of the day-to-day affairs and business of the said hotel was principally with employees nominated by him.

10. In or about November, 2010 the petitioners were served with a copy of a purported summons issued by the Learned First Court of the Metropolitan and Municipal Magistrate Calcutta. On inquiries, the petitioners were informed that a purported inspection was carried out by the opposite party, namely, Sri Pradip Chakroborty, Food Inspector, of the Kolkata Municipal Corporation, purportedly designated and appointed under the said 1954 Act, at the premises of Hotel Minerva on 30th September, 2010. In the course of th

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