IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT SRINAGAR
SANJAY DHAR, J.
Rishi Sharma Director Haustus Biotech Private Limited – Petitioner
Versus
Bilal Ahmad Rather, Drugs Inspector – Respondent
CRMC No. 272 of 2017
Decided On : 24-08-2022
Drugs and Cosmetics Act - Impleading Manufacturer as Accused - Section 18(a)(i) - Section 32A - Summary
Fact of the Case:
The petitioner challenged a complaint filed by the Drugs Inspector alleging offences under section 18(a)(i) of the Drugs and Cosmetics Act, 1940, and an order impleading the petitioner as an accused. The complaint was related to the quality of a drug, Menthocare-D, manufactured by M/s. Haustus Biotech Pvt. Ltd.
Finding of the Court:
The court found that the impleadment of the petitioner as an accused was not based on evidence adduced during the trial, as required by Section 32A of the Drugs and Cosmetics Act. The court also criticized the trial Magistrate's arbitrary actions, including directing the seizure of products and suspension of the company's license, without legal basis.
Issues: The main issues were the improper impleadment of the petitioner as an accused and the lack of evidence against the petitioner. The court also addressed the absence of allegations regarding the petitioner's responsibility for the company's business and the failure to implead the manufacturing company as an accused.
Ratio Decidendi: The court held that impleading a person as an accused under Section 32A requires satisfaction based on evidence adduced during the trial. The court also emphasized the need for proper legal procedures and criticized arbitrary actions by the trial Magistrate.
Final Decision: The petition was allowed, and the proceedings in the impugned complaint as well as the complaint against the petitioner were quashed.
JUDGMENT :
SANJAY DHAR, J.
1. The petitioner has challenged the complaint filed by respondent Drugs Inspector alleging commission of offences under section 18(a)(i) of the Drugs and Cosmetics Act, 1940, as also order dated 10.10.2017, by virtue of which the Learned Chief Judicial Magistrate Pulwama, has impleaded the petitioner as an accused and issued process against him.
2. As per the record, respondent Drugs Inspector had filed a complaint inter alia against the Managing Director and proprietor of M/s. Haustus Biotech Pvt. Ltd, alleging therein that a sample of the drug, namely, Menthocare-D was lifted from the premises of M/s. Guru Nanak Pharmacy, Diver Tral, for testing and analysis. The said sample, upon analysis by the Government Analyst, was found to be not of standard quality. During investigation, it was found that the drug in question has been manufactured by M/s. Haustus Biotech Pvt. Ltd. Tahliwal Una, Himachal Pradesh. At the instance of the manufacturing company, the sample, under the direction of concerned Judicial Magistrate, was sent to Central Drugs Laboratory, Kolkata, for re-analysis. After reanalysis of the sample, it was reported by the Central Drugs Laboratory, Kolkata, that the sample is not of standard quality. Accordingly, the prosecution was launched against the manufacturer, suppliers and the retailer of the drug in question.
3. Initially the petitioner was not impleaded as an accused in the complaint but during the pendency of the complaint, learned trial Magistrate vide impugned order dated 10.10.2017 observed that the accused company has been sold to the petitioner and, as such, he is required to be impleaded as an accused. Accordingly, vide the aforesaid order, the petitioner has been impleaded as an accused in the complaint.
4. The petitioner has raised a number of grounds to challenge impugned complaint and the proceedings emanating therefrom but the main grounds that have prevailed during the course of arguments are that the petitioner has been impleaded as an accused in the complaint without there being any evidence against him and that the Learned Magistrate, while impleading the petitioner as an accused, has not followed the procedure prescribed under law. It has also been contended that there are no allegations against the petitioner in the impugned complaint, inasmuch as it is nowhere stated in the complaint that the petitioner was the person responsible for conducting the day-to-day business of the company. It is further contended that the company, of which the petitioner is the Director, has not been impleaded as an accused and, as such, the complaint cannot proceed against the petitioner.
5. The respondent/complainant in his reply narrated the facts alleged in the impugned complaint and has submitted that the petitioner has avoided his appearance before the Trial Magistrate, as a consequence whereof non-bailable warrants were issued against him. It has been contended that proper procedure was adopted by the learned Trial Magistrate while impleading the petitioner as an accused.
6. Heard learned counsel for the parties and perused the material on record including the trial court record.
7. At the very outset it has been contended by learned counsel for the petitioner that the Learned trial Magistrate, while impleading the petitioner as an accused, has not followed the proper procedure provided under law. It has been submitted that before impleading a person as an accused in a complaint relating to offences under Drugs and Cosmetics Act, the court has to record satisfaction as to the involvement of the proposed accused and the said satisfaction has to be recorded on the basis of the evidence adduced in the court. According to the learned counsel, no such satisfaction has been recorded by the Learned Trial Magistrate while impleading the petitioner as an accused.
8. In order to test the merits of this contention, we need to notice the provisions contained in Section 32A of the Drugs and Cosmetics
The judgment emphasizes the requirement for evidence-based satisfaction for impleading an accused under Section 32A of the Drugs and Cosmetics Act and highlights the need for courts to adhere to prop....
Cognizance of offences under the Drugs and Cosmetics Act requires adherence to procedural mandates, especially under Section 202 of Cr. P. C when the accused is beyond jurisdiction.
Preliminary inquiry under S.202 of the CrPC is mandatory before issuing process against accused residing beyond territorial jurisdiction.
Trial court cannot issue process without preliminary inquiry under Section 202 of the CrPC when the accused resides outside jurisdiction. Non-compliance renders proceedings illegitimate.
The judgment established the principle that a company can be prosecuted without impleading its Directors or persons responsible for conducting its business, and can be sentenced to a fine for offence....
Directors of a company not involved in drug manufacturing cannot be held liable under the Drugs and Cosmetics Act absent specific evidence of their responsibility for the conduct of business.
Under Section 34 Drugs and Cosmetics Act, company offence liability presumes against nominated responsible person and firm; other officers require specific role allegations, not mere designations.
Liability under Section 34 of the Drugs and Cosmetics Act requires specific allegations of being in charge and responsible for the conduct of the business, which were absent in this case.
Point of Law - In fact, there is no bar to sending a sample of drug for test/analysis directly to CDL without first sending to the Government Analyst. This is clear from the bare language of the Sect....
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