Directors of pharmaceutical companies are liable for criminal prosecution in the event of the company being found responsible for manufacturing defective drugs as it would seriously affect public health, the Supreme Court has ruled.
A Bench of Justices V S Sirpurkar and Cyriac Joseph passed the ruling in a judgement while dismissing the appeal filed by directors of a Gujarat-based drug company challenging their prosecution for supply of fungus-loaded drugs.
The apex court rejected the argument that they cannot be prosecuted as the complaint lodged against them by the State Government contained "bald statements" and no direct allegations against their involvement.
"This was the case of the manufacture of the drug for human consumption and, after it was tested in laboratory, was found to be defective since there was a growth of fungus, which is a very serious matter related to public health.
"Under the peculiar circumstances of this case and realising the seriousness of the allegations, we would not take a technical view based on pleadings in the complaint," Justice Sirpurkar writing the judgement observed.
The apex court passed the judgement while dismissing the appeal filed by Dinesh B Patel and certain other directors of M/s. Denis Chem Lab. Ltd., Chhatral, Ta. Kalol, District Gandhinagar, against whom the Gujarat Government launched criminal prosecution under Section 34(2) of the Drugs & Cosmetics Act, 1940.
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