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2023 Supreme(Guj) 1326

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SANDEEP N. BHATT, J.
KUM KUM ROY CHAUDHARY D/O LATE SC ROY
Versus
STATE OF GUJARAT
Special Criminal Application Nos. 5709, 5710, 5711, 5713, 5715, 5716, 5717 of 2015
Decided On : 27-10-2023

Advocates:
Advocate Appeared:
For the Appellants : PERCY KAVINA, GARIMA MALHOTRA, NEHA GUPTA, BHASH H. MANKAD
For the Respondents: CHINTAN DAVE, DIGANT B. KAKKAD, HRIDAY BUCH

Directors who resign before the alleged offense cannot be held vicariously liable under food safety laws without specific allegations of their involvement at the time of the offense.

Headnote:(A) Food Safety and Standards Act, 2006 - Sections 3(1)(zz)(1), 26(5), 27(2)(c), 59(1), 66 - Complaints for unsafe food - Petitioners claimed they were not in charge of the company at the time of the alleged offense, having resigned prior to sampling - Court ruled they could not be held vicariously liable for the acts of the company - Mandatory procedure under Section 202(1) of the CrPC not followed in issuing summons. (Paras 2.1, 6.1, 14)

(B) Criminal Procedure Code, 1973 - Section 482 - Courts should exercise inherent powers sparingly, especially when a full trial is required to ascertain facts - The prosecution’s case against the petitioners lacks sufficient basis to proceed. (Paras 3.2, 6.1)

Facts of the case:
The petitioners were directors of a company accused of selling unsafe packaged water. They contended that they had resigned before the alleged offense and were not responsible for its conduct when the complaints were filed. (Paras 2.2, 3.1)

Findings of Court:
The Court found the petitioners were not responsible for the offense as they had resigned prior to the incident and quashed the proceedings against them. (Paras 6.1, 14)

Issues: The primary questions were whether the petitioners could be held liable given their resignation prior to the alleged offense and whether the mandatory procedural requirements to issue summons were followed. (Paras 3.1, 6.1)

Ratio Decidendi: The Court emphasized that liability under the FSSAI arises only for those in charge at the time of offense; as the petitioners had resigned, there was no basis for imposing liability. Also, due process under CrPC was not adhered to by the Magistrate. (Paras 6.1, 7)

Result: Petitions allowed, and the summoning order quashed against the petitioners.

Table of Content
1. introduction of the case and details on the complaint. (Para 1 , 2)
2. arguments regarding the responsibilities of directors. (Para 3 , 4 , 5)
3. court's assessment of the petitioners' director status. (Para 6)
4. discussion on liability as per the fssai act. (Para 7 , 8)
5. convergence of legal principles from related case law. (Para 9 , 10 , 11 , 12 , 13)
6. final conclusion and quashing of the complaint. (Para 14)

JUDGMENT :

SANDEEP N. BHATT, J.

1. All these petitions are filed under Article 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973 (`the Code’ for short) for quashing and setting aside the complaint being Criminal Case No. 2197 of 2014 titled as B.C. Kathiriya Vs. Amitbhai Jentibhai Shah & Ors. Pending in the Court of learned Chief Judicial Magistrate at Junagadh district which is filed under Sections 3 (1)(zz)(1) 26(5), 27(2)(c) and 59(1) of the Food Safety and Standards Act, 2006 (`FSSAI Act for short) and the summoning order dated 28.7.2015 passed in the same.

2. As the common question of facts and law are involved in all these petitions, at the request of learned advocates for the parties, they are heard together and disposed of by this common judgment.

2.1 The facts leading to filing of these petitions, as stated in the petitions, are such that on 30.7.2013, the respondent no. 2- took samples of food item being packaged drinking water (1000 ML Batch No. MP082, Mfg. Dated 1.6.2013 ) maximum retail price Rs.18 only referred to as Code & Serial No. 10/FDA/MU/JND/1/44/2013 and issued form VA (form of notice to the Food Business Operator) with the acknowledgement and sign of the respondent nos.3 and 4; that the respondent no. 3, vide its letter dated 30.7.2013, intimated the Municipal Corporation Junagadh, Gujarat that the respondent no. 2 had purchased the Sahara Q Shop Packaged Drinking Water (1000ML) from his firm and the same was sent to Food Analyst, Gujarat for testing. It was also informed by respondent no. 3 that total number of bottles purchased by respondent no. 2 were 16 in number costing Rs.10 per litre and Rs.160 in total; that the respondent no. 2 sent vide Form VI (memorandum to Food Analyst) the aforesaid articles to the Food Analyst, Gujarat Food & Drugs Laboratory, Vadodara on 31.7.2013 for analysis under Clause A of sub-section (1) of Sections 3 8 and 47 (except 47(5) of the FSSAI Act; further, a copy of memorandum and specimen impression of the seal used to seal the packet of sample was being sent separately via. Regd. A.D. thereafter, the respondent no. 2, vide letter dated 31.7.2013 intimated Municipal Corporation, Junagadh that remaining three parts of sample no. 44/2013 that were collected from respondent no. 3, were sent to Municipal Corporation, Junagadh in terms of Section 47 (1)(c)(ii)(c)(iii) of FSSAI Act; that on 6/7.8.2013, the Food Analyst received the Sample No. 44/2013 from respondent no. 2 for analysis and the same was tested; that the Food Analyst vide Form B sent a report on 17.8.2013 to the Food Officer under FSSAI Act, stating that the sample no. 44/2013 was sub-standard; on 13.9.2013, the Office of Assistant Commissioner Food and Drugs Control Administration, Junagadh, vide their letter informed respondent no. 3 and respondent no. 4 that the sample no. 44/2013 had been declared `sub-standard’; it was further informed to respondent nos.3 and 4 that against the above mentioned report of Food Analyst, Vadodara, he can file an appeal under section 46(4) and to test the sample at referral Laboratory within thirty days of receipt of the notice.

2.2 It is further averred in the petition that on 13.1.2014, the Referral Food Laboratory, Ghaziabad issued Certificate of Analysis for sample 44/2013 in the prescribed Form A stating that the said sample did not conform with the standards laid down under regulation 2.10.8 of FSSAI Regulations 2011 and declared the said sample was unsafe under Section 3 (1)(zz)(i) of FSSAI Act and the same

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