Directors cannot be held liable for a company's criminal acts without specific allegations of their involvement; mere directorship is insufficient for establishing vicarious liability.

JUDGMENT :

SANDEEP SHARMA, J.

1. By way of instant petition filed under S.528 of the Bharatiya Nagrik Suraksha Sanhita, 2023 (hereinafter, ‘ BNSS ’), prayer has been made on behalf of the petitioners for quashing of Cr. Complaint titled State of Himachal Pradesh through Drugs Inspector H.Q. Mandi, H.P. v. Health Biotech Limited and others, pending adjudication before learned Additional Chief Judicial Magistrate, Mandi (CNR No. HPMA020089392022 & Reg. No. 01/2022 & date of institution 30.7.2022). Besides above, petitioners, who are Directors of M/s Health Biotech Limited, have also prayed for quashing of summoning order as well as subsequent proceedings issued/initiated against the petitioners by the court concerned, while taking cognizance of offence under S. 18(a)(i) and S.27(d) of Drugs and Cosmetics Act, 1940 (hereinafter, ‘Act’).

2. Precisely, the facts of the case are that on 10.9.2021, complainant Mr. Abhilash Kumar, Drugs Inspector, H.Q. Mandi, Himachal Pradesh received a letter from the Senior Medical Superintendent, SLBSGMC & H, Mandi at Nerchowk through the Chief Medical Officer, Mandi, regarding sampling and testing of the product namely Local Anaesthesia 2% xylocaine with adrehanline available in OT. Thereafter, the complainant drew a sample of “Lignocaine and Adrenaline Injection I.P. (A-CAINE ADR)’ (Batch No. HILR2006F, Mfg. date Nov. 2020, Expiry Date Oct.2022, Mfd. by M/s Health Biotech Limited) on Form-17 and Form 17-A from the In-charge, Central Store, SLBSGMC & H Mandi for the purpose of test and analysis and on 13.9.2021, the said sample was referred to the Government Analyst, RDTL Chandigarh, Sector 39-C, Chandigarh-160036 on Form-18. On 24.11.2021, complainant received test and analysis report from the Government Analyst, RDT Chandigarh on Form-13 whereby the said sample of the drug was declared as “Not of Standard Quality” for the reason that the sample does not conform to the claim as per IP 2018 in respect to the assay of Adrenaline Bitartrate calculated as adrenaline.

3. After receipt of the said sample analysis report, vide letter dated 24.11.2021, the Chief Pharmacist, Central Drugs Store, SLBSGMC&H Mandi, was called upon to disclose the name and address of the firm from whom he purchased the above said drug and simultaneously a letter dated 24.11.2021 was also sent to the manufacturing firm i.e. M/s Health Biotech Limited to recall and stop further distribution of the said drug. On 13.12.2021, complainant received a letter dated 8.12.2021 from the Chief Pharmacist, Central Drugs Store through the Senior Medical Superintendent SLBSGMC & H Mandi, which disclosed that the said drug was purchased from the firm M/s Pradhan Mantri Bhartiya Jan Aushdhi Kendra SLBSGMC&H Mandi at Nerchowk, Mandi, H.P, whereafter, notice was issued to M/s Pradhan Mantri Bhartiya Jan Aushadhi Kendra, SLBSGMC & H Mandi to disclose the name and address of the firm from where the product was procured. M/s Pradhan Mantri Bhartiya Jan Aushadhi SLBSGMC& H disclosed vide letter dated 18.12.2021 that it had procured the above said product from firm M/s Pradhan Mantri Bhartiya Jan Audhadhi Kendra, Bhangrot, Tehsil Balh, District Mandi, HP vide bill dated 5.4.2021 and as such, notice was issued to Jan Aushadhi Kendra, Bhangrot.

4. In response to the inquiry letter, M/s Pradhan Mantri Bhartiya Jan Aushadhi Kendra, Bhangrot, Tehsil Balh, Distri