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2025 Supreme(Raj) 2315

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
ANOOP KUMAR DHAND, J.
M/s Cadila Pharmaceuticals Ltd. - Petitioners
Versus
The State of Rajasthan, Through P.P. - Respondents
S.B. Criminal Miscellaneous (Petition) No. 6524 of 2025 With S.B. Criminal Miscellaneous (Petition) No. 2667, 2668, 5132, 5136, 5137 of 2022, S.B. Criminal Miscellaneous (Petition) No. 7747, 7748 2024
Decided On : 28-11-2025

Advocates:
Advocate Appeared:
For the Petitioner:Mr. V.R. Bajawa-Sr. Advocate with Ms. Savita Nathawat, Mr. Vickey Bajwa, Mr. Sarthak Karol, Mr. Neelakshi Bhadawria and Mr. Tarun Kumar Mishra Mr. Dharmendra Gupta for Mr. G.D.Bansal
For the Respondents: Mr. Amit Punia-PP

Cognizance of an offence requires specific allegations and judicial application of mind, failing which the order is quashed.

Headnote:(A) Drugs and Cosmetics Act, 1940 - Sections 18(a)(i), 18(a)(iv), 27(d), 16(1)(a), 34 - Cognizance - The Court emphasizes that the failure to state specific allegations against directors in a cognizance order renders it untenable. The Magistrate must apply judicial mind and provide reasons for taking cognizance to ensure that sufficient grounds exist to proceed against accused parties. (Paras 23, 29)

(B) Criminal Procedure Code - Section 202 - The Court reiterates that an enquiry is mandatory before issuing summons against accused, especially if residing outside jurisdiction. A cursory cognizance order, lacking formal application of mind, infringes procedural fairness. (Paras 20, 24)

Judgement Key Points

Key Points: - The court emphasizes that lack of specific allegations against directors in a cognizance order renders it untenable and requires judicial mind and reasons for taking cognizance (!) (!) . - An enquiry under Section 202 Cr.P.C. is mandatory before issuing summons, especially when the accused reside outside the jurisdiction; a non-speaking cognizance order breaches procedural fairness (!) (!) . - The order taking cognizance must be reasoned and speaking; a cursory, non-speaking order is liable to be quashed and remanded for a reasoned order, with emphasis on prima facie grounds to proceed (!) (!) . - Directors can be liable only if specific allegations exist; mere presence of a director in records without explicit allegations may render cognizance improper under Section 34 and related provisions (!) (!) . - The matter remitted to magistrate for a fresh reasoned order, clarifying that meticulous evaluation of evidence is not required at cognizance but application of mind is essential (!) . - The court cites that the process must reflect sufficient grounds to proceed and that the order’s reasons must be stated, citing Lalankumar Singh and related judgments (!) (!) (!) . - The judgment condemns cursory, proforma cognizance orders and suggests administrative measures to improve cognizance practice (!) (!) .

What is the standard for taking cognizance under the Drugs and Cosmetics Act and whether the cognizance order must contain reasons and reflect application of mind?

What is the mandatory pre-summons enquiry under Section 202 Cr.P.C. when the accused reside outside the court's jurisdiction?

What are the implications for holding directors, stockists, and distributors liable in cognizance when specific allegations against them are not stated, and can cognizance be quashed for non-speaking orders?


Order :

ANOOP KUMAR DHAND, J.

1. Since common questions of fact and law arise in all these misc. petitions, hence, with the consent of counsel for the parties, all the matters are taken up for final disposal and are accordingly being decided by this common order.

2. For the sake of convenience, the facts mentioned in S.B. Criminal Miscellaneous (Petition) No. 7747/2024 are taken into consideration.

3. By way of filing this criminal misc. petition, a prayer has been made for quashing the order dated 22.05.2015 passed by the Chief Judicial Magistrate, Jhunjhunu in criminal complaint No. 285/2015 taking cognizance against all the petitioners under Section 18(a)(i), 18(a)(iv) and 27(d) read with Section 16(1)(a) of the Drugs and Cosmetics Act, 1940 (for short, ‘the Act of 1940’) and all the petitioners have been summoned.

4. Counsel appearing on behalf of the Director i.e. Mr. Rajiv Modi submits that bare perusal of the entire complaint does not reveal any allegations against the petitioners. Counsel submits that as per Section 34 of the Act of 1940, the Drug Inspector is duty bond to incorporate the allegation levelled against the Director in the complaint that every person who is In-charge of the company was liable and responsible for the business/conduct of the company but in the instant case, no specific allegation has been alleged against the petitioners. He further submits that in the absence of such allegation, the petitioners cannot be arrayed as accused in the complaint. He further submits that while taking cognizance against the petitioners no satisfaction has been recorded by the Trial Court and straightaway, the order of cognizance has been passed in a cursory manner without due application of mind. In support of his contentions, counsel has placed reliance upon the judgment passed by the Hon’ble Apex Court in the case of Inox Air Products Limited Vs. The State of Andhra Pradesh, reported in 2025 INSC 128, M/s. JM Laboratories and Ors. Vs. State of Andhra Pradesh and Anr., (Criminal Appeal No. 487/2025) decided on 30.01.2025, Anita Malhotra Vs. Apparel Export Promotion Council and Anr. reported in 2012(1) SCC 520, Siby Thomas Vs. M/S/. Somany Ceramics Ltd. reported in 2023 Live Law (SC) 869 and Susela Padmavethy Amma Vs. M/s. Bharti Airtel Limited, (SLP (Criminal) No. 12390/2022) decided on 15.03.2024.

Lastly, he argued that under Section 202 Cr.P.C. it is mandatory that before issuing summons to the accused, an enquiry should be held against the accused particularly in those cases where the accused is residing outside the territorial jurisdiction of the Court. Counsel submits that under these circumstances, the impugned order passed by the Court below taking cognizance against the petitioners is not sustainable in the eyes of law and the same is liable to be quashed and set aside.

5. Counsel appearing on behalf of the other Director i.e. Pankaj Patel, submits that the sample of the disputed drugs was taken by the Drug Inspector on 21.05.2012 and it was sent to the State Laboratory for analysis and the report of the same was received on 04.12.2012 which indicates that the drugs were found to be of substandard quality. Counsel submits that Mr. Pankaj Patel, was not the Director of Company because he had already resigned from his post way back in the year 1995 and was no longer involved in the day to day affairs of the said company. Hence, under these circumstances, the petitioner cannot be arrayed as an accused in the complaint and no cognizance ought to have been taken against him.

6. Counsel submits that so far as the petitioner company M/s Cadila Pharmaceuticals Ltd. is concerned, no specific allegation has been attributed to the said company, and the same is against the mandate contained under Section 34 of the Act of 1940. Hence, under these circumstances, the impugned proceedings arising out of the impugned complaint and cognizance order are liable to be quashed and set aside.

7. Mr. Dharmendra Gupta for Mr. G.D.Bansal app

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