IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT
SANJAY DHAR, J.
Nava Healthcare Pvt. Ltd. - PETITIONER
Vs.
Ut of J&K - RESPONDENT
CRM(M) No.453 OF 2022 c/w CRM(M) No.454 OF 2022
Decided On :
(A) Drugs and Cosmetics Act - Sections 18(a)(1), 18A, 27(d), 28, and 32 - Cognizance of offences - Petitioners challenged the complaint and order of cognizance issued by the trial Magistrate for alleged offences under the Act - The court found that the trial Magistrate failed to conduct a preliminary enquiry as required under Section 202 of Cr. P.C before issuing process against the petitioners, who are located outside the jurisdiction - The court emphasized that cognizance can be taken by a Magistrate even if the offences are triable by a Court of Sessions, but a preliminary enquiry is mandatory when the accused resides beyond the jurisdiction. (Paras 1-21)
(B) Preliminary Enquiry - Requirement - The court reiterated that a Magistrate must conduct a preliminary enquiry under Section 202(1) of Cr. P.C before issuing process against an accused residing outside the jurisdiction, as established in Vijay Dhanuka and other cases. (Paras 18-20)
Facts of the case:
The respondent filed a complaint against the petitioners for manufacturing and marketing a drug not conforming to quality standards, following inspections and test reports. The petitioners contended that the trial court did not follow proper procedures and that the complaint was not maintainable against the Directors.
Findings of Court:
The court found the trial Magistrate's order unsustainable due to the lack of a preliminary enquiry as mandated by law.
Issues: The main issues included whether the trial court properly attributed roles to the Directors and whether the Magistrate conducted a necessary preliminary enquiry before issuing process.
Ratio Decidendi: The court ruled that the trial Magistrate's failure to conduct a preliminary enquiry under Section 202(1) of Cr. P.C rendered the order unsustainable, affirming that cognizance can be taken but must follow due process.
Result: Both petitions are allowed, and the impugned order is set aside.
| Table of Content |
|---|
| 1. complaint filed against petitioners (Para 1) |
| 2. inspection and sample collection (Para 3 , 4) |
| 3. test report findings (Para 5 , 6) |
| 4. challenge to the complaint (Para 7 , 8) |
| 5. specific role of directors (Para 9 , 10 , 11) |
| 6. reliability of test report (Para 12 , 13 , 14 , 15) |
| 7. interpretation of section 32 (Para 16) |
| 8. requirement of preliminary enquiry (Para 17 , 18 , 19 , 20 , 22) |
| 9. order set aside (Para 21) |
JUDGMENT :
1) Through the medium of present judgment, the afore-titled two petitions arising out of the same complaint filed by the respondent against the petitioners and co-accused before the Court of Chief Judicial Magistrate, Anantnag, are proposed to be disposed of.
2) The petitioners, who happen to be the accused in the impugned complaint, have challenged the complaint filed by the respondent against them before the trial Magistrate. By virtue of the impugned complaint, prosecution for offences under Section 18(a)(1) read with Section 27(d),Section 18A read with Section 28 of the Drugs and Cosmetics Act has been launched against the petitioners and the co-accused. Challenge has also been thrown by the petitioners to the order passed by the learned trial Magistrate whereby cognizance of offences has been taken and the process has been issued against the petitioners.
3) It appears that the respondent Drug Control Officer, Anantnag, filed a complaint against the petitioners as also against their Directors and three more accused persons before the trial Magistrate. As per contents of the complaint, the respondent visited the premises of accused M/S Three Star Medical Agency on 09.01.2020 for inspection and lifted sample of drug “Tab Pantolid” manufactured by petitioner Mancare Laboratories Pvt. Ltd. The sample was divided into four equal portions and sealed by following the procedure prescribed under law. One portion of the sample was handed over to the proprietor of accused M/S Three Star Medical Agency against proper receipt, another portion of the sample was sent to the Government Analyst in terms of memorandum dated 09.01.2020. As per test report submitted by the Government Analyst, the sample was found not of standard quality as the same was not complying to IP requirement with respect to disintegration test. In this regard, the Government Analyst furnished his report dated 30.05.2020. A copy of the said report was furnished to proprietor of accused M/S Three Star Agency and it was directed to submit the procurement/purchase records as also the distribution pattern of drug in question. The available quantity of tablets of “Pantolid” was seized and kept in safe custody after obtaining permission from the Chief Judicial Magistrate, Anantnag.
4) It is further averred in the impugned complaint that as per the information furnished by accused M/S Star Medical Agency, the drug in question had been purchased from accused M/S J. S. Traders, Anantnag. Accordingly, the details were sought from M/S J. S. Trader with regard to the supplier of the drug. Vide communication dated 1st June, 2020, accused M/S J. S. Traders disclosed the name of M/S Rather Traders, Srinagar, accused No.4, as supplier of the drug. M/S Rather Traders, in turn, disclosed that it had purchased the said drug from petitioner M/S Nava Health Care Private Limited, New Delhi, vide invoice dated 03.04.2019. The original copy of the test report along with portion of drug sample was forwarded to the manufacturer petitioner M/S Mancare Laboratories Limited and information was sought from the said petitioner. Vide communication dated 02.06.2020, petitioner M/S Mancare Laboratories desired re-testing of the drug sample and to adduce evidence in controversion of the report of the Government Analyst.
5) In terms of the order of the Chief Judicial Magistrate, Anantnag, the sample of drug was sent to Director, Central Drugs Laboratory, Kolkata, for re-testing and vide report dated 23.09.2020, of the said Laboratory it was declared that the drug in question is
A Magistrate must conduct a preliminary enquiry under Section 202(1) of Cr. P.C before issuing process against an accused residing outside jurisdiction, even if cognizance can be taken for offences t....
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.
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.
Quash of Criminal proceedings - once it is shown that the right of accused to adduce evidence in controversion of the Government Analyst’s report is defeated due to acts and omission of the Drugs Ins....
The prosecution of drug quality violations is unsustainable when testing delays invalidate the accused's rights to challenge the results, highlighting the need for timely compliance under the Drugs a....
Non-compliance with statutory provisions and resignation of the accused from the company absolved him of liability, leading to the quashing of the proceedings.
Point of law: Quash of Criminal proceedings –Rejected - Disputed question of facts to be raised before trial court -
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.
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....
Prosecution quashed for delay in sample testing beyond 60 days without extension under Rule 45 and failure to send sample to manufacturer under Section 23(4)(iii), depriving re-analysis right post sh....
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