IN THE HIGH COURT OF MADHYA PRADESH
Deepak Kumar Agarwal, J.
Ravinder Kumar Agarwal v. State of M.P.
Miscellaneous Criminal Case No. 27698 of 2019 (G); Decided on 17.3.2023
Food and Safety Standards Act, 2006 -- S. 66 -- liability of directors of company -- directors of company only vicariously liable for offence -- cannot be prosecuted in absence of prosecution of company. (2012) 5 SCC 661, 2011 SCC Online MP 1299, (2015) 12 SCC 781, (2018) 17 SCC 275 and (2020) 10 SCC 751 followed. [Para 8]
[kk| rFkk lqj{kk ekud vfèkfu;e] 2006 & èkkjk 66 & daiuh d¢ funs'kdksa dk nkf;Ro & daiuh d¢ funs'kd vijkèk d¢ fy, d¢oy çfrfufèkd :i ls nk;h & daiuh d¢ vfÒ;¨tu d¢ vÒko esa vfÒ;¨ftr ugha fd, tk ldrsA ¼2012½ 5 ,l lh lh 661] 2011 ,l lh lh vkWuykbu ,e ih 299] ¼2015½ 12 ,l lh lh 781] ¼2018½ 17 ,l lh lh 275 rFkk ¼2020½ 10 ,l lh lh 751 vuqlfjrA ¼iSjk 8½
ORDER
1. The present petition has been filed by the petitioner under section 482 of Cr.P.C. for quashing the complaint filed under sections 26, 27 and 59 of the Food and Safety Standards Act, 2006 (herein after referred to as "the Act of 2006") and for quashing the orders directing issuance of the warrant of arrest against the petitioner in Criminal Case No.829/2013 (State of M.P. Through Food Safety Officer, Guna v. Ajeet Jain and others) pending before JMFC, Guna.
2. The brief facts of the case are as follows. On the basis of a complaint filed before the JMFC, Guna by the respondents herein, notice was directed to be issued to the petitioner who was arrayed as accused No.4. On 2.2.2019, bailable warrants were directed to be issued against the petitioner and on 11.5.2019, 4.6.2019 and on 22.6.2019 non- bailable warrants of arrest were directed to be issued against the petitioner. The offender in this case is Ravi Foods Pvt. Ltd. (Unit-II) which came into existence in the year 1988 as a manufacturer of biscuits and other bakery products at Hyderabad.
3. According to the Ld. Counsel for the respondents, a sample of Elaichi Flavored Cream Biscuits was taken from the Food Safety Officer, Guna from one Ajeet Jain who is accused No.1 and Panchnama was prepared on spot on 23.2.2012 with regard to the seizure of the said biscuits. The sample was sent to food analyst Bhopal, which is found to be misbranded by its report dated 6.3.2012 and it was again sent for analysis to the CFTRI at Mysore and by report dated 21.5.2012, the sample was found unfit for human consumption because of the presence of Emulsifiers (322.471) (Licithin). In view of the second report from the Mysore Laboratory which reflects that the food product which was Dukes Cream, Elaichi Flavored Biscuits was found unfit for human consumption, the complaint was filed by the respondents against four persons.
4. The first accused was Ajeet Jain (retailer), the proprietor of Shanti Sales from whom the sample was seized. Second accused was Shishir Goyal, who was owner of Firm Nirmal Chandra - Sharad Chandra Goyal, the distributor in this case. The third accused was nominee Mr. B. Dinkar, the Laboratory In-charge of Ravi Foods Pvt. Ltd. (Unit-II) at Madhuban Colony at Kattendan, Hyderabad and the fourth accused was the Directors of Ravi Foods Pvt. Ltd., (Unit-II). Undisputedly, the company - Ravi Foods Pvt. Ltd., has not been made an accused in this case. The sanction for prosecution was granted on 8.4.2013 which is prior to the institution of the complaint case before the learned trial Court on 10.5.2013. The sanction for prosecution has also been granted only with regard to the aforementioned four persons. No prosecution sanction has been given with regard to the prosecution company itself.
5. The arguments of learned counsel for the petitioner is restricted to two points. First, that the company has not been impleaded and therefore, in view of section 66 of the Act of 2006, the Directors could only be held vicariously liable and in the absence of company itself as an accused, the Directors could not be held vicariously liable. Secondly, the complainant was aware that B. Dinkar, who was the Food Safety Officer of the company was nominated to represent the company and, therefore, in the light of the first proviso to section 66 of the Act of 2006, the Directors of the company could not have been prosecuted.
6. As regards special statutes which provides for prosecution of the Directors for the offences committed by the companies, it is settled law that the Directors can not be prosecuted in isolation where the company has not been made an accused (Aneeta Hada v. Godfather Travels and Tours Pvt. Ltd., (2012) 5 SCC 661 and Sanghi Brothers Indore (p) Ltd. v. Premchand, 2011 SCC Online MP 1299), Sharad Kumar Sanghi v. Sangita Rane (2015) 12 SCC 781 Para 11, Managing Director v. State of Karnataka (2018) 17 SCC 275 and Hindustan Unilever Ltd. v. State of M.P. (2020)10 SCC 751 Para 23. U
SupremeToday
A Managing Director cannot be prosecuted under the Food Safety Act without the company being a party to the proceedings, as vicarious liability requires both to be present in court.
The main legal point established in the judgment is that the prosecution for an offense under the Food Safety and Standards Act, 2006 must be filed within the prescribed time limit, and the absence o....
Partners of a firm are not liable for offences under the Food Safety Act unless specific allegations of their involvement are made.
Directors who resign before the alleged offense cannot be held vicariously liable under food safety laws without specific allegations of their involvement at the time of the offense.
The absence of the manufacturer as an accused in food safety violations renders prosecution against the licensee untenable, violating procedural requirements of the FSS Act.
The central legal point established is that the procedure for launching prosecution under the Food Safety and Standard Act, 2006 must be followed, and the designated officers must have the necessary ....
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