# In the matter of Vijay Kumar Kanoria vs. The State of Telangana

> HC judgment dated 2024-09-02. Citation: TCN-2024-HC-00039. This Criminal Petition No. 147 of 2024 was filed under Section 482 of the Code of Criminal…

- **Court:** HC
- **Order date:** 2 Sept 2024
- **Citation:** TCN-2024-HC-00039
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/vijay-kumar-kanoria-vs-the-state-of-telangana-9c831d0d

## Summary

### Background

This Criminal Petition No. 147 of 2024 was filed under Section 482 of the Code of Criminal Procedure, 1973, seeking to quash the order dated 07.12.2023 passed in PRC.No.52 of 2022. The case originated from a complaint alleging contraventions of the Drugs and Cosmetics Act, 1940, and the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954, against M/s. Gena Pharmaceuticals Limited. The petitioner, a former director of the accused company, argued that proceedings were initiated against him despite the company being under liquidation and him not being a director at the time of registration of the case.

## Facts

The petitioner, a former director of M/s. Gena Pharmaceuticals Limited, filed a criminal petition to quash an order passed in PRC.No.52 of 2022. The complaint alleged contraventions of the Drugs and Cosmetics Act, 1940, and the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954, based on the seizure of certain drugs from M/s.Divya Medical and General Stores on 18.05.2015. The petitioner argued that he was not a director of the company at the time the case was registered on 24.11.2022 and that the company was under liquidation since 2016 following CIRP proceedings initiated on 09.08.2019 by the NCLT, Kolkata. The petitioner also contended that the complaint was time-barred and that no individual criminal liability was imposed on him.

## Issues and analysis

### Issue 1: Whether the criminal proceedings against the petitioner, a former director of a company under …

**Ratio:** The ratio is based on the principle that a former director cannot be held liable for the

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**Reasoning:** The court reasoned that the petitioner was not a director of the company at the time the

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**Interpretation:** The interpretation is that the liability of a director is linked to their

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** K. Su…
- **Appellants:** Zubin JF Poovathin…
- **Respondents:** Gena Pharmaceutica…; Stat…
- **Other parties:** Kohi…

## Timeline

- **2015-05-18 — Seizure of…**: Drugs were seized from M/s.Divya Medical…
- **2019-08-09 — CIRP Init…**: NCLT, Kolkata, admitted an application under Section 7 of the Insolvency and Bankruptcy…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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