The prosecution arose after a Drugs Inspector drew samples of “Polymicin Eye Drops”, manufactured by M/s VADSP Pharmaceuticals, Baddi, from a Punjab-based distributor in September 2018. The samples were later tested by the Regional Drugs Testing Laboratory, Chandigarh, which declared the drug “not of standard quality”.
Following the investigation, the Drugs Inspector filed a complaint alleging offences under Sections 16, 18(a)(i), 18(a)(vi) read with Section 27(d) of the Drugs and Cosmetics Act against the manufacturing firm and its partners.
The petitioners contended before the court that although they were partners in the firm, they were neither responsible for the day-to-day affairs nor in charge of the conduct of the business. They argued that the firm had specifically appointed an Analytical Chemist as the person responsible for manufacturing and business operations under the statutory framework.
The petitioners further submitted that the complaint lacked the mandatory averments required to prosecute partners vicariously under the Act.
While quashing the criminal proceedings, Justice Sandeep Sharma observed that “criminal liability of partners or directors cannot be presumed merely because of their status in the firm. The complaint must specifically state that the accused persons were in charge of and responsible for the conduct of the business at the relevant time”.
The court noted that the complaint was “completely silent” regarding the specific role of accused Nos. 2 and 3 and did not satisfy the legal requirements laid down by the Supreme Court in various judgments concerning vicarious liability.
Holding the prosecution unsustainable against the petitioners, the HC allowed the petition and quashed the complaint and all consequential proceedings pending before the Chief Judicial Magistrate, Nalagarh, qua the petitioners.
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