Supreme Court overturns the decision of Bombay High Court, removes compensation of Rs 5 lakh imposed on Maharashtra FDA – ..


The Supreme Court of the country has given major relief to the Maharashtra Government and the Food and Drug Administration (FDA) in an important case related to food safety and administrative actions. The Supreme Court has completely overturned the decision of the Bombay High Court, in which the FDA was directed to pay a compensation of Rs 5 lakh to a hotel in Pune. This compensation was asked to compensate for the business loss suffered due to the suspension of the hotel’s food license. This decision of the apex court has brought great relief to the administrative officials and food safety regulators.

This entire legal dispute started on June 12, when a team of Maharashtra FDA conducted a surprise check on the ‘Gurunanak Dairy and Sweets’ establishment located in Pune. This action was taken by the authorities after receiving some serious complaints of food poisoning in the area. During the investigation, gross irregularities were found regarding food safety standards within the establishment.

The investigation team found that cleanliness and hygiene (hygiene) was not being maintained at all in the hotel premises, proper records were not maintained, rules for labeling of food items were flouted and personal hygiene of the staff working there was also not up to the standards. Highlighting all these serious shortcomings, the license of the concerned establishment was suspended with immediate effect under the provisions of the Food Safety and Standards Act, 2006 (FSS Act, 2006).

The case against this action of license suspension reached the Bombay High Court. During the hearing, the High Court had expressed disagreement with the arguments and administrative arguments of the FDA. The court had held that the hotel operator had suffered financial loss due to the license being suspended, and ordered the FDA to pay a compensation of Rs 5 lakh.

Maharashtra government and FDA had approached the Supreme Court against this order of Bombay High Court. The case will be heard by Supreme Court Justice M.M. Sundaresh and Justice P.B. Happened in front of Varale’s back. After hearing the arguments of both the parties, the Supreme Court bench rejected the order of the Bombay High Court, in which the FDA was asked to pay compensation. This decision of the court is being considered as a big step in favor of the administrative system dealing strictly with food safety and adulteration.

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