Allahabad High Court Upholds Summons Against Drug Company in Toxic Syrup Case
The Allahabad High Court has firmly dismissed petitions filed by officials and directors of a Noida-based pharmaceutical company. These individuals challenged summons issued against them by the Chief Judicial Magistrate of Gautam Budh Nagar. The summons relate to serious violations in drug manufacturing, including the use of ethylene glycol in cough syrup.
Court Rejects Technical Arguments, Upholds Magistrate's Order
Justice Harvir Singh delivered the decision on January 14, 2024. He dismissed the criminal revision pleas that contested a January 19, 2024, order from the Gautam Budh Nagar CJM. The case, Union of India versus Ms Marion Biotech Pvt Ltd and others, involves multiple sections of the Drugs and Cosmetics Act, 1940.
The judge stated that the arguments presented by the company's directors and officials were merely technicalities. He found no glaring mistake or gross irregularity in the original summoning order. Justice Singh emphasized that the revisionists would have ample opportunity to present their defense during the framing of charges, a stage which has not yet been reached.
Directors Held Fully Responsible Under the Law
In his ruling, Justice Singh clarified the legal responsibility of company officials. He pointed to Section 34 of the Drugs and Cosmetics Act, which holds directors and senior functionaries accountable for offences committed under the Act. The judge noted that these individuals are wholly and fully responsible for the conduct of the company's business.
He explicitly rejected the notion that directors could distance themselves from day-to-day operations. Justice Singh stated that a mere statement claiming directors have nothing to do with the company's business leads nowhere under the statutory provisions.
The Serious Allegations and International Link
The case centers on a test analysis report that declared certain drug samples "not of standard quality." This finding triggered proceedings under relevant penal sections of the Drugs and Cosmetics Act. The drugs inspector's complaint alleges multiple violations by Marion Biotech Pvt Ltd.
Key allegations include:- Manufacture and sale of drugs declared "not of standard quality"
- Potential violations related to adulterated and spurious drugs
- Procedural non-compliance in manufacturing processes
- Liability of company officials for these violations
A particularly grave allegation involves the use of ethylene glycol in cough syrup manufacturing. Ethylene glycol is a toxic chemical commonly used in industrial products. It is strictly prohibited from being present beyond specified limits in medicines. At the time of manufacturing in September 2021, the applicable British Pharmacopoeia 2020 completely banned its use in cough syrup production.
This Noida-based pharmaceutical company has been linked to a tragic international incident. Its products are associated with the deaths of over a dozen children in Uzbekistan, adding severe gravity to the legal proceedings.
Arguments Presented During the Hearing
During the court proceedings, the revisionists' counsel argued that the judicial magistrate issued summons without proper application of judicial mind. They contended that the complaint lacked specific averments showing directors were in charge of and responsible for the company's business at the relevant time, as required under Section 34.
The counsel representing the Union of India strongly opposed the petition. They argued that having a manufacturing license is not absolute. The company's compliance with license conditions is paramount, and any violation warrants appropriate legal action. The government counsel emphasized the complete prohibition of ethylene glycol in cough syrup under the applicable pharmacopoeia standards.
The Allahabad High Court's dismissal reinforces the legal principle that company officials cannot evade responsibility for serious violations in drug manufacturing. The case now proceeds to the next stages of the judicial process, where the substantive allegations will be examined in detail.
