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2007 (8) TMI 798

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..... ch No. 1028, with manufacturing date August, 2000 and expiry date November, 2002 was collected by the Drug Inspector (complainant) from the premises of Sarvanand Hospital in the presence of the proprietor of the hospital. 3. On 21.9.2000, one sealed sample portion of the said drug was forwarded to the Government Analyst, Central Indian Pharmacopocia Laboratoray, Ghaziabad, U.P. 4. On analysis the sample of the drug was found to be not of standard quality. 5. The manufacturing firm in its letter dated 7.11.2001 stated that it did not accept the Government Analyst's report and intend to adduce evidence in controversion of Government Analyst's report as provided under Section 25(3) of the Act and requested th .....

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..... : DI in person I have heard DI/Complainant in person and have perused the record. I take cognizance of the offence. Since the Complainant is public servant his statement is dispensed with. Issue summons of the complaint to the accused persons for 3.5.2004. MM, Delhi 8.12.2003 9. Learned senior Counsel for the petitioner submitted that the summoning order is based on non-application of judicial mind by the learned Metropolitan Magistrate. He further submitted that learned Metropolitan Magistrate failed to note that M/s. Rhone-Poulene (India) Ltd. and Nicholas Piramal India Ltd. are two different companies. That the effect of amalgamation between the 2 companies is that M/s. Rhone-Poulene (India) Ltd. is .....

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..... inct from the individual members of the company as held by the House of Lords in Salomon v. Salomon Co. Ltd. (1895-1899) All England Reports 33. 12. In the decision reported as In Re Walker's Settlement (1935) 1 Ch. D. 567, 'amalgamation' was defined as under: The word 'amalgamation' has no definite legal meaning. It contemplates a state of things under which 2 companies are so joined as to form a third entity or one company is absorbed into and blended with another company. 13. In the decision reported as Nokes v. Doncaster (1940) 3 All E.R. 549, it was held that a contract of personal service previously existing between an individual and the transferor company, does not automatically become .....

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..... ot be distinguished from the death of the natural person in its effect.... It follows, therefore, that as the death of natural person abates all pending litigation to which the corporation is appearing either as a plaintiff or defendant. To allow actions to continue would be to continue the existence of the corporation pro hac vice. But corporations exist for specific purposes, and only by legislative act, so that if the life of the corporation is to continue even only for litigating purposes it is necessary that there should be some statutory authority for the prolongation. 16. In the decision reported as American Exch. Bank v. Mitchell 179 III. App. 612, 615, 616, it was held that after a corporation is dissolved, it is incapable .....

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..... t be prosecuted for an offence committed by the transferor company. To the same effect are the observations of the High Court of Himachal Pradesh in the unreported decision in Crl. Rev. No. 150/1994 M/s. Brooke Bond Lipton (India) Ltd. and Anr. v. State of H.P. and Anr. decided on 24.3.1995. 20. So far as Clause 8 relied upon by the counsel for the State is concerned, same relates to transfer of legal proceedings. The clause does not contemplate that criminal liability for offence committed by the earlier company would be transferable to the petitioner company. 21. Noting that the petitioner company came into picture on 27.9.2001, after the date of manufacture of the said drug in year 2000, I hold that it cannot be prosecu .....

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