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Legal News 26 October 2023

“Manufacturer cannot shirk from its liability that it was seller who was selling unsafe product,” Madhya Pradesh HC

मध्य प्रदेश उच्च न्यायालय ने हिंदुस्तान कोका-कोला के खिलाफ आपराधिक कार्यवाही खारिज करते हुए निर्णय दिया कि निर्माता (manufacturer) अपनी जिम्मेदारी (liability) से यह कहकर नहीं बच सकता कि केवल विक्रेता दुकान में असुरक्षित उत्पाद (unsafe product) बेच रहा था।

In a recent judgment, the Madhya Pradesh High Court (HC) refused to quash criminal proceedings against the Hindustan Coca-Cola Beverages Pvt. Ltd. for an alleged fungal-infected ‘Maaza Mango Drink’ displayed for sale by a retailer. While dismissing the petition, the bench said, “...The manufacturer is also a seller and it is his duty that unsafe food products should not be put on sale to consumers. All-packer, wholesaler, distributor, and seller work on a contract with a manufacturer. Therefore, it is the duty of the manufacturer to see that none of its product is there in the store of wholesaler, distributor or seller and before its expiry date, it should be removed or should have been recalled.” It also mentioned that “manufacturer cannot shirk from its liability that it was seller who was selling unsafe product.”

While addressing Coca-Cola’s liability regarding the drink manufacture on 02.02.2012 and marked as ‘Best Before Six Months’ on the label, stated that “At this stage, it cannot be said that only Accused No. 1 was responsible for the sale of unsafe food product i.e. ‘Maaza Mango Drink’ and the fungal developed in the product while keeping in the shop of petitioners/Accused No. 1 or it was there when it was dispatched from the manufacturing unit. At this stage, no such finding in this petition under Section 482 of the Code of Criminal Procedure, 1973 (CrPC) can be given.”

During the proceedings, Coca-Cola’s argument regarding the Designated Officer’s ability to entail imprisonment as punishment and not just fine. It said that “ in this case, the complaint has been filed under various sections alleging violation of the Act under which some of them are punishable with fine only and some of them are punishable with imprisonment; and power has been delegated to the Designated Officer by Commissioner, therefore, trial Court can examine this issue during the trial because the issue of the validity of sanction is liable to be examined by the trial Court itself during the trial by framing a specific issue. At this stage, it cannot be held that petitioner No. 2 would be punished with imprisonment also.” 

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Frequently Asked Questions

Can a manufacturer avoid liability by blaming the seller for unsafe products?

No, the Madhya Pradesh High Court ruled that a manufacturer cannot shirk its liability by claiming that it was the seller who was selling the unsafe product.

What did the MP High Court decide on the Section 482 CrPC petition?

The High Court dismissed the petition under Section 482 of the CrPC, refusing to quash criminal proceedings against Hindustan Coca-Cola Beverages Pvt. Ltd.

Who will examine the validity of sanction during the proceedings?

The High Court held that the trial court can examine the issue of the validity of sanction during the trial by framing a specific issue.