Inordinate delay of 22 years leads Supreme Court to quash case

NEW DELHI: More than 22 years after a criminal complaint was filed against two former heads of Hindustan Unilever Limited (HUL) for the alleged violation of Indian standard specifications in the manufacture of toilet soaps at its factory in UP, the Supreme Court cited inordinate delay to quash the proceedings without going into the merit of the allegation.
Holding that the case was still “at nascent stage” despite the passage of almost 22 years since the criminal complaint was lodged against SM Datta and KB Dadiseth, a bench of Justice AK Sikri and Justice RK Agrawal, however, directed the company to pay Rs 10 lakh to be used for the benefits of employees of the drugs control department of UP.
The complaint was filed in 1993 after the drug inspector allegedly found out that the Lux and Breeze soaps manufactured at the factory did not conform with Indian standard specifications as the total fatty matter content was much below the level mandated.
Taking cognisance of the alleged violation, chief judicial magistrate of Unnao initiated the proceedings and summoned Datta and Dadiseth. The two then approached the Allahabad High Court, which, in an interim order, stayed the proceedings. The case remained pending in the HC for 18 years.
In 2012, the court dismissed the duo’s plea and paved the way for proceedings against them. But the company officials approached the Supreme Court, which granted interim stay on lower court proceedings.
Advocates Gaurav Dhingra and Vikrant Yadav, appearing for the UP government, contended that the company had played fraud with the public by displaying that they were producing toilet soaps in accordance with the prescribed standards. They told the bench that the soap had much lower levels of fatty matter than Indian standards prescribed, which could have affected the skin of consumers. The bench, however, observed that there was no need to go into the merit of the case as 22 years had already passed and the proceedings were still at an initial stage.
“In these circumstances, without going into the merits of the contentions of both the parties, it would be appropriate to give a decent burial to the entire issue by quashing the complaint,” the SC bench said.
Senior advocate Siddharth Luthra, appearing for the company, accepted the proposal.