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2024 Supreme(Cal) 798

IN THE HIGH COURT AT CALCUTTA
ANANYA BANDYOPADHYAY, J.
PepsiCo India Holdings Pvt. Ltd. – Appellant
Versus
The State of West Bengal and Anr. – Respondents
C.R.R. 3772 of 2014
Decided on : 17-01-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. Rajesh Batra, Mr. Sakabda Roy Mr. Anindya Halder
For the Respondent: Mr. Nabankur Paul, Mr. Deborshi Dhar

The absence of importer information on a carbonated drink label does not amount to misbranding under the Prevention of Food Adulteration Act, 1954, especially where a valid trade agreement between India and Bhutan exempts such products from certain labeling requirements.

Headnote:(A) Prevention of Food Adulteration Act, 1954 - Sections 7(ii) and 16(1)(a)(i) - Complaint against misbranding due to omission of importer address on label - Label deemed compliant for carbonated drinks under Rule 32(c)(iii) as per free trade agreement - Sanction for prosecution deemed invalid due to procedural flaws and absence of import liability - Proceedings quashed. (Paras 1, 18, 60, 62)

(B) Misbranding - Definition under Section 2(ix)(k) - An article deemed misbranded if not labelled in accordance with PFA Act or rules - Labeling exemption applied to carbonated water per Rule 32. (Paras 11, 58)

Facts of the case:
The petitioner sought to quash proceedings for alleged misbranding of carbonated beverages under the PFA Act, citing lack of involvement and proper labeling as per trade agreement between India and Bhutan. Cognizance was taken based on a Public Analyst's opinion, stating absence of importer details on the label. (Paras 5, 18, 60)

Findings of Court:
The Court found the labeling compliant under the free trade agreement as the product was manufactured in Bhutan and thus exempt from local labeling requirements. The prosecution lacked sufficient grounds for charges against the petitioner. (Paras 21, 60, 62)

Issues: The court addressed whether the absence of the importer’s details constituted misbranding under the Act and if due process was followed in the initiation of prosecution. (Paras 11, 25)

Ratio Decidendi: The court ruled that the Public Analyst's opinion did not constitute adequate grounds for prosecution, as the product was exempted from certain labeling requirements and the petitioner had been improperly included in the complaint. (Paras 39, 61, 62)

Result: The criminal proceeding C.R. Case No. 374/2006 was quashed.

Table of Content
1. quashing of proceedings under the pfa act. (Para 1 , 2 , 3 , 4)
2. insufficient evidence of the petitioner's involvement. (Para 5 , 6 , 8)
3. misbranding under specific statutory provisions. (Para 7 , 13)
4. legal interpretation of import and labeling rules. (Para 9 , 10 , 12)
5. allegations relate to labeling under pfa act and aspects surrounding trade agreements. (Para 11)

JUDGMENT :

Ananya Bandyopadhyay, J.

1. The instant revisional application is filed by the petitioner praying for quashing of the proceedings being C.R. Case No. 374/2006 under Section 7 (ii)/16(1)(a)(i) of the Prevention of Food Adulteration Act, 1954, pending before the Court of the Learned Additional Chief Judicial Magistrate, Siliguri and all orders passed therein by the Learned Additional Chief Judicial Magistrate, Siliguri.

2. On the basis of a complaint lodged by the opposite party no.2 C.R. Case No. 374/2006 was registered before the Court of the Learned Additional Chief Judicial Magistrate, Siliguri, therein alleging commission of offences by the petitioner and one Biplab Saha punishable under Sections 7 (ii)16(1)(a)(i) of the Prevention of Food Adulteration Act, 1954.

3. The allegations made in the said complaint in brief are to the effect that-

    a. On the 05.08.2006 at about 11 a.m., the Food Inspector went out for inspection at 1 No. Dabgram Colony, Siliguri and inspected the premises of M/S. Biplab Agency and seized three sealed bottles of sweetened carbonated water Pepsi having identical label declarations each of 600 ml for the purpose of analysis.

    b. The Food Inspector packed, fastened and sealed each of the three bottles and pasted a paper slip bearing the Code No. and Serial No. of the Local (Health) Authority: D-SGL, 825 duly signed by the L (H) A, Siliguri.

    c. One part of the said sample with a memorandum in Form VII was sent to the Public Analyst (F&W), W.B. Public Health Laboratory, Kolkata by registered parcel post on 07.08.2006.

    d. The remaining two parts of counter sample phials were sent along with two copies of Memorandum VII in a sealed packet to the LHA, Siliguri along with a forwarding memo on 07.08.2006 for safe custody.

    e. The vendor disclosed the name and address of the supplier from whom he purchased the said sweetened carbonated water (Pepsi). As such notice in Form VII was also issued to the supplier Pepsi Co India Holdings Pvt. Ltd., Maxinus Enterprises India(P)., Inshad Warehouse, 2½ mile Checkpost, P.O. Sevoke Road, Dist, Jalpaiguri by regd. Post along with a forwarding letter on 07.08.2006.

    f. The public analyst declared the sample as misbranded under his report number 177(4) dated 01.09.2006 stating that the label of the sample does not contain the name and complete address of importer in India as required under provision of Rule 32(c) (iii). Hence the sample is misbranded under Sub Clause(K) of Clause(IX) of Section 2 of the P.F.A. Act 1954.

    g. On receipt of the analysis report by the L(H)A, Siliguri the said L(H)A informed the complainant the result of analysis and directed the complainant in writing to prepare all necessary connected papers for launching prosecution in the Ld. Court of Addl. Chief Judicial Magistrate, Siliguri vide his Memo No. 309, dated 18.10.2006.

    h. The complainant with the consent from local (Health) Authority, Siliguri prepared complaints against:-

    i. Sri Biplab Saha, S/o Sri Sunil Saha – Vendor & Prop. M/s Biplab Agency, 1 No. Dabgram Colony, P.O. Siliguri, Dist. Darjeeling.

    ii. M/S Pepsi Co India Holdings(P) Ltd., C/O Maxinus Enterprise India (P) Ltd., Inshad Warehouse, 2½ Mile Checkpost, P.O. Sevoke Road, Dist. Jalpaiguri.

4. The Learned Additional Chief Judicial Magistrate, Siliguri was inter alia pleased to take cognizance and issue summons to the petitioner vide order dated 1.11.2006.

5. The Learned Advocate for the petitioner submitted that the entire complaint is misconceived and bereft of any cogent materials to justify the implication of the petitioner in connection with a criminal p

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