Issuing summons is not an "empty formality" and a magistrate is required to apply his mind as to whether sufficient ground exists for proceeding against an accused or not, the Supreme Court said on Tuesday.
A bench of Justices B R Gavai and C T Ravikumar made the observation while quashing the summons issued against the Directors of a pharmaceutical company.
"The order of issuance of process is not an empty formality. The Magistrate is required to apply his mind as to whether sufficient ground for proceeding exists in the case or not. The formation of such an opinion is required to be stated in the order itself.
"The order is liable to be set aside if no reasons are given therein while coming to the conclusion that there is a prima facie case against the accused. No doubt, that the order need not contain detailed reasons," the bench said.
The top court said simply because a person is a director of the company, it does not necessarily mean he fulfils the requirements under the Drugs & Cosmetics Act, 1940 so as to make him liable.
"It has been held that a person cannot be made liable unless, at the material time, he was incharge of and was also responsible to the company for the conduct of its business," the bench said.
It said merely because a person is a director of a company, it is not necessary that he is aware about the day-to-day functioning of the company.
"This Court has held that merely reproducing the words of the section without a clear statement of fact as to how and in what manner a director of the company was responsible for the conduct of the business of the company, would not ipso facto make the director vicariously liable," the bench said.