Law:

Section:

(a) Drugs Act (XXIII of 1940)--- Ss. 18, 19(3) & 27 read with Companies Act (VIII of 1913), S. 23(2)-Substandard drug-Foisting liability-Substandard drug actually manufactured by a. Company-Company being a private limited Company, a "person" in its own right within meaning of such expression as appearing in Ss. 18, 19(3) & 27-Company, prima facie, bringing itself within mischief of law but no proceedings drawn up against Company-Company, had prosecution proceeded against it, barred from pleading in defence its being ignorant of nature, substance, or quality of substandard drug or of circumstances of its manufacture, and liable to be punished-Liability of Managing Director of Company, held, could arise only when such person shown to have manufactured such substandard drug for and on behalf of Company--­No such allegation having been made in challan submitted to trial Court and Managing Director being assisted by various executives and workers, difficult to presume respondent being guilty of manufacture of substandard drug in question for and on behalf of Company just because of happening to be Company's Managing Director. (b) Drugs Act (XXIII of 1940)- S. 19(3)-Substandard drug-Distribution of-Liability of manufac­turer of drugs and his Agent for distribution of drug-Co-extensive- Respondent not alleged .or shown to have acted as Agent of Manufacturing Company for . distribution of substandard drug, respondent not to be held guilty of offence of distribution of sub­standard drug. (c) Drugs Act (XXIII of 1940)- - S. 38-Substandard drug-Foisting of liability-Principal accused under S.38-Company, Corporation, or Firm--Prosecution foisting liability also on Director, partner, or officer of Company-Burden of proof, held, lies on prosecution to show offence having been committed within their knowledge and consent.-[Burden of proof]. (d) Criminal Procedure Code (V of 1898)- -- S. 561-A-Quashment of proceedings-Challan submitted against respondent (acxused) containing no allegation as accusations, which if allowed to go to trial even remotely likely to end up in conviction--Whatever allegations made against accused even if assumed to be true, not disclosing any…

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