IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
SANDEEP SHARMA, J.
Amit Kumar Bansal - Petitioner
Versus
Union of India - Respondent
Cr.MMO Nos.305 & 707 of 2022
Decided On : 09-04-2026
| Table of Content |
|---|
| 1. court combined cases with common issues. (Para 1 , 2) |
| 2. complaints detail drug inspection findings. (Para 3 , 4 , 7 , 8) |
| 3. petitioner seeks quashing of both complaints. (Para 5 , 6) |
| 4. arguments challenge petitioner's involvement. (Para 10 , 11 , 12) |
| 5. court explores jurisdiction under section 482 cr.p.c. (Para 13 , 14 , 15) |
| 6. apex court outlines conditions for quashing. (Para 16 , 17 , 18 , 19) |
| 7. analysis of established legal precedents. (Para 20 , 21 , 22) |
| 8. managing director's liability in criminal acts. (Para 23 , 24) |
| 9. provisions regarding vicarious liability. (Para 25 , 26 , 27) |
| 10. legal requirements for liability established. (Para 28 , 29 , 30) |
| 11. discusses specifics of criminal liability. (Para 31 , 32 , 33 , 34) |
| 12. apex court's position on specific averments. (Para 38 , 39 , 40) |
| 13. court emphasizes requirement for prosecution conditions. (Para 41 , 42 , 43) |
| 14. court's rationale for quashing complaints. (Para 44 , 45 , 46) |
| 15. final ruling quashing complaints against petitioner. (Para 47) |
Judgment :
Sandeep Sharma, J.
Since common question of facts and law are involved in both the above captioned cases, this Court after having clubbed the same, heard them together and are now being disposed of vide common judgment.
Cr. MMO No.305 of 2022
2. By way of instant petition filed under Section 482 Cr.P.C., prayer has been made on behalf of petitioner for quashing of complaint case No.8/3 of 2022, titled as Union of India Vs. M/s Theon Pharmaceuticals Limited and Others, pending in the Court of learned Additional Chief Judicial Magistrate, Nalagarh, District Solan, as well as order dated 10.01.2022, passed in afore complaint, thereby summoning petitioner as an accused.
3. Briefly summarised, the facts are that on 31.12.2021, Mr. Fahim Khan, Drug Inspector, Central Drug Standard Control Organisation, India, Sub-Zone Baddi, Himachal Pradesh, filed a complaint under Sections 18(a)(i) and 18(a)(vi) read with Section 16 punishable under Section 27(d) of the Drugs and Cosmetics Act, 1940, (for short, ‘the Act’) against M/s Theon Pharmaceuticals Limited, Managing Director of afore company i.e. petitioner herein and Mr. Puran Chand Joshi, Wholetime Director, averring therein that Mr. V. Kaviyarasan, the then Drugs Inspector, CDSCO, Sub- Zone Baddi, Himachal Pradesh, had drawn the sample on Form No.17, dated 27.03.2018 of the drug “Diclofenac Sodium” with Thiocolchicoside tablet (Theomove-4), Batch No.GT171481, DoM-11-2017, DoE-10-2019, manufactured by M/s Theon Pharmaceuticals Ltd., village Saini Majra, Tehsil Nalagarh, District Solan, Himachal Pradesh – 174101, from the premises of Main Drugs Store, Govt. Multi-specialty Hospital, Sector 16, Chandigarh, under Section 23 of the Drugs and Cosmetics Act, 1940. Afore Drug Inspector divided the drug, so lifted as samples, into four portions and sealed them as per the procedure prescribed under the Drugs and Cosmetics Act, 1940, in the presence of Mr. Anil Tanwar (Pharmacist of Main Drug Store, Govt. Multi-specialty Hospital, Sector 16, Chandigarh) and signatures of Mr. Anil Tanwar were taken on each of the sample portions.
4. After the receipt of report from the Regional Drugs Testing Laboratory, Chandigarh, on 23.08.2018 and after completing the codal formalities, as envisaged under the Act, complaint under Sections 18(a)(i) and 18(a)(vi) read with Section 16 punishable under Section 27(d) of the Drugs and Cosmetics Act, 1940, was filed before the learned Additional Chief Judicial Magistrate, Nalagarh, District Solan (Annexure P-1), impleading therein petitioner herein, who happens to be Managing Director of M/s Theon Pharmaceuticals Limited, as one of the accused.
5. After having found prima facie case against the accused, named in the complaint, learned Court below issued process vide order dated 10.01.2022 (Annexure P-2), thereby calling upon the accused, including petitioner herein, to appear in aforesaid complaint. In the afore background, petitioner has approached this Co
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Vicarious liability under Section 34 of Drugs and Cosmetics Act requires specific complaint averments that director/MD in charge and responsible for company business conduct; mere designation insuffi....
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.
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A stockist cannot be held liable for drug quality violations if not impleaded in the prosecution, highlighting the necessity of prosecuting the manufacturer under the relevant legal framework.
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