The Supreme Court on Thursday refused to interfere with an Allahabad High Court order upholding summons issued to a pharmaceutical company and its officials in a complaint alleging manufacture and sale of drugs “not of standard quality”, while expressing concern over the impact of the controversy on India’s global reputation.
A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi declined to quash the proceedings arising from a January 2024 summoning order passed by the Chief Judicial Magistrate, Gautam Buddha Nagar, in a case under the Drugs and Cosmetics Act, 1940.
During the hearing, the bench questioned the conduct alleged against the firm, observing, “Do you realise what dent it has caused to the country’s image?” It further remarked, “Only for the sake of money, you indulge into this? The nation’s image is dented due to this.”
The proceedings originate from a complaint filed by a Drugs Inspector in Noida alleging multiple violations of the Drugs and Cosmetics Act, including manufacture and sale of drugs declared “not of standard quality”. The complaint also invoked provisions relating to adulterated and spurious drugs, procedural non-compliance, and vicarious liability of company officials.
Acting on the complaint, the Chief Judicial Magistrate issued summons to the company and certain officials in January 2024.
The firm and its officials challenged the summoning order before the Allahabad High Court. The High Court, however, dismissed the pleas, holding that the prosecution was primarily based on a test analysis report declaring certain samples “not of standard quality” and that there was no illegality or infirmity in the magistrate’s order.
During arguments before the High Court, counsel for the Centre had submitted that cough syrup manufactured by the firm was found to be poisonous in Uzbekistan and was linked to the deaths of more than 18 children.
Before the Supreme Court, counsel for the company contended that there was nothing on record to establish that consumption of the syrup had caused any deaths.
The bench, however, declined to go into such factual disputes at the stage of challenge to the summoning order and refused to quash the proceedings.
Upholding the High Court’s decision, the Supreme Court allowed the criminal proceedings under the Drugs and Cosmetics Act to continue. The Court’s remarks focused on the seriousness of allegations relating to drug quality and their potential impact on public health and India’s international standing.
The matter will now proceed before the trial court in Gautam Buddha Nagar in accordance with law.
