J&K High Court Refuses To Quash Drug Case Against Directors

Indian Opinion DeskIndian Opinion DeskGovernance31 minutes ago1 Views

J&K&L High Court Refuses To Quash Drug Quality Case Against Company Directors, Says Responsibility Under Drugs Act Requires Trial

The Jammu & Kashmir and Ladakh High Court has refused to quash criminal proceedings against three directors of Corona Remedies Pvt. Ltd. over a drug declared “Not of Standard Quality”. Justice Wasim…

The Story in Brief

The Jammu & Kashmir and Ladakh High Court has refused to quash criminal proceedings against three directors of Corona Remedies Pvt. Ltd. over a drug declared “Not of Standard Quality”. Justice Wasim Sadiq Nargal held that whether the directors were in charge of, and responsible for, the company’s business under Section 34 of the Drugs and Cosmetics Act must ordinarily be decided at trial.

J&K High Court Refuses To Quash Drug Case Against Directors

The case followed a Government Analyst’s report dated August 31, 2016. The company said it had stopped sales and had no remaining stock. The court said directors cannot avoid prosecution at the initial stage merely by claiming they had no personal role in manufacturing. Directorship alone does not prove guilt, but the directors’ responsibility and due diligence require evidence.

The Indian Opinion

The lazy narrative here would be that every company director is automatically guilty, or that technical staff alone carry all responsibility. The ruling says neither. Directors must have a chance to prove lack of knowledge or due diligence, while claims of non-involvement cannot end proceedings before evidence is tested. The practical test is whether the trial establishes who controlled the relevant business decisions and whether the company acted responsibly after the quality report.


Source: livelaw.in

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