The Delhi High Court on Tuesday set aside an order of the Food Safety and Standards Authority of India (FSSAI) directing Red Bull to stop using the term “energy drink” on its beverage products, holding that the company had not been given an opportunity to respond before the direction was issued.
Justice Amit Mahajan allowed Red Bull’s petition on the limited ground that the principles of natural justice had been violated. The court permitted FSSAI to reconsider the issue after following due process and giving the company an opportunity of hearing.
The court noted that it was undisputed that FSSAI’s June 30 order had been passed without giving Red Bull an opportunity to file a reply or offer an explanation.
While setting aside the order, the court said FSSAI would remain free to take a fresh decision after issuing a show cause notice to the company and hearing it.
FSSAI Says Concern Limited To ‘Energy Drink’ Description
During the proceedings, FSSAI informed the court that no separate show cause notice had been issued to Red Bull. It submitted that the June 30 communication itself was intended to operate as a notice.
FSSAI also clarified that its concern related only to the use of the words “energy drink” and not to Red Bull’s beverage product itself.
The High Court, however, found that the company had not been afforded an opportunity to respond before the direction was issued.
Red Bull Challenges June 30 Direction
Red Bull had approached the High Court against FSSAI’s June 30 order requiring it to discontinue the use of the term “energy drink” on its beverage products.
The company submitted that it had been using the description “energy drink” for its products in India since 2002. It also contended that FSSAI had previously recognised the use of the expression for the relevant category of caffeinated beverages.
Allowing the petition, the court set aside the June 30 order while leaving FSSAI at liberty to pass a fresh order after issuing a show cause notice and granting Red Bull an opportunity of hearing.
