In Brief
The appellants, directors of a pharmaceutical company, were prosecuted under the Drugs & Cosmetics Act, 1940 for manufacturing substandard Hemfer Syrup. The Supreme Court held that mere director status does not establish vicarious liability under Section 34; the complaint must contain specific averments showing how and in what manner the director was in charge of and responsible for the company's business at the material time. Managing directors are presumed to have such responsibility by designation; others must be alleged specifically. Additionally, the Magistrate's order issuing process must state reasons for finding sufficient grounds—it is not a mere formality. The appeal was allowed and the complaint against the appellants was dismissed as the accusations lacked such specific allegations.
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