Healthcare Newsletter – November 2022 Edition
Recently Madras High Court (“Madras HC”) has held that all the directors are vicariously liable under the Drugs and Cosmetics Act, 1940 for the sub-standard drugs manufactured by a company and the directors cannot claim that they are not directly involved in the production of drugs.
The Madras HC has deviated from the settled position of law that vicarious liability cannot be fastened upon directors or officials, who are not involved in the day-to-day affairs of a company.
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