SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Online)(HP) 1912

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Rakesh Kainthla, J
Akhilesh Kumar – Appellant
Versus
State Of Hp – Respondent
Cr. MP(M) No. 276 of 2026



Advocates:
For the Appellants/Petitioners: Ajay Kochhar, Varun
For the Respondents: Lokender Kutlehria

For criminal liability to attach to a partner under the Drugs and Cosmetics Act, the complaint must explicitly aver that the accused was in-charge of and responsible for the conduct of the business; in the absence of such an averment, bail should be considered.

Headnote:(A) Drugs and Cosmetics Act, 1940 - Section 34 - Vicarious liability - Bail application - Compulsary averment required that accused was in-charge and responsible for conduct of business - Absence of such averment makes prima facie liability of partner suspect. (Para 11)

(B) Bail - Factors to consider - Nature of accusations, criminal antecedents, severity of punishment, likelihood of influencing witnesses and securing presence during trial - Burden of proof to establish genuine case lies on prosecution as per Section 34 requirements. (Paras 8, 11)

Facts of the case:
The petitioner, a partner in a firm manufacturing drugs, was arrested following allegations that the firm engaged in manufacturing activities despite a stop-order and produced spurious drugs labeled under a non-existent company. The petitioner filed for regular bail, arguing that the complaint failed to satisfy the essential legal requirement of specifically alleging that he was personally in-charge and responsible for the affairs of the firm.

Findings of Court:
The Court observed that while the grave nature of allegations regarding spurious drugs are concerning, the complaint lacked the necessary statutory averment under Section 34 of the Act. Consequently, the petitioner’s continued detention was not justified, and the apprehensions regarding witness tampering could be mitigated by imposing stringent conditions.

Issues: Whether the absence of a specific averment in the complaint regarding the petitioner being 'in-charge and responsible' for the conduct of the firm's business warrants the grant of bail, and whether the nature of the alleged offence necessitates continued custody.

Ratio Decidendi: In the absence of an explicit averment that the accused was in-charge of and responsible for the firm’s conduct of business, a partner cannot be held liable, rendering the case for continued detention weak at the prima facie stage.

Result: Petition allowed; bail granted with conditions.

Table of Content
1. factual background regarding arrest and allegations for spurious drug manufacture. (Para 1 , 2 , 3)
2. summary of rival contentions regarding bail application. (Para 4 , 5 , 6)
3. examination of established legal precedents and parameters for bail. (Para 7 , 8 , 9 , 10)
4. requirement of necessary averments to establish vicarious liability under the act. (Para 11)
5. conclusion of bail grant based on case facts and stringent protective conditions. (Para 12 , 13 , 14 , 15 , 16 , 17)

The petitioner has filed the present petition seeking regular bail in a complaint bearing Registration No. 45 of 2025 titled State of H.P. versus Akhilesh Kumar and M/s YL Pharma pending adjudication before the learned Special Judge, Nalagarh, District Solan, H.P.

2. It has been asserted that M/s Y.L. Pharma is a firm registered with the Registrar of Firms and is engaged in the business of drug manufacturing. Dheeraj Kumar is endorsed as a manufacturing chemist. The Drug Inspector inspected the premises of M/s Y.L. Pharma on 1.11.2025. He noticed that the firm was carrying out manufacturing activities in violation of the stop manufacturing order dated 29.3.2025. He seized samples of seven drugs stated to be manufactured by M/s Y.L. Pharma, which included 19 capsules of Pregabalin. The Drug Inspector arrested the petitioner on 15.11.2025 on the allegation that the capsules of Pregabalin stated to be manufactured by M/s SSN Pharma Tech, Plot No.324-325, Industrial Estate, Sadam, Sikkim, were spurious because no such pharmaceutical manufacturing unit existed in the State of Assam. A complaint was filed before the learned Trial Court after the completion of the investigation. There is a dispute amongst the partners, and the work of manufacturing the drugs was being looked after by the authorised chemist. The complaint does not mention that the petitioner was in charge and responsible for the affairs of the firm, which is an essential requirement under Section 34 of the Drugs and Cosmetics Act. The petitioner has been behind bars since 15.11.2025. The complaint has been filed before the Court, and no fruitful purpose would be served by detaining the petitioner in custody. The trial has not commenced, and the petitioner’s right to a speedy trial is being violated. Hence, it was prayed that the present petition be allowed and the petitioner be released on bail.

3. The petition is opposed by filing a status report asserting that information regarding a Not of Standard Quality (NSQ) was received from the State Drugs Controller, Rajasthan, on 31.10.2025, about the drug sample Levocetirizine Dihydrochloride Tablets (Wincet-L), Batch No. YLT25023, manufacturing 03/2025, expiry 02/2027. The Assistant Drugs Controller-cum-Licensing Authority, Baddi inspected the premises of M/s Y.L. Pharma on 1.11.2025 in the presence of independent witnesses and found that the firm had carried out manufacturing activities in violation of the stop manufacturing order dated 29.3.2025. Four samples of drugs and loose red capsules purported to contain Pregabalin 300 mg were drawn for analysis after completing the formalities. Various drug products purportedly manufactured by M/s SSN Pharma Tech, Plot No. 324-325, Industrial Estate, Sadam, Sikkim, along with packing materials and stereos used for printing batch number, were recovered from the premises. The petitioner disclosed himself to be a partner of the firm and an authorised signatory. He produced the sales record of various products manufactured by the firm. State Drugs Controller, Sikkim, informed that no firm under the name and style of M/s SSN Pharma Tech, Plot No. 324-325, Industrial Estate Sadam, Sikkim existed in Sikkim. Therefore, the drugs recovered from the premises were spurious. The petitioner was arrested on 15.11.2025. Further investigations were conducted, various persons were arrested, and a complaint was filed against the petitioner and M/s Y.L. Pharma on 16.1.2026. No intimation was received regar

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top