The Supreme Court has set aside a Bombay High Court directive that ordered the Maharashtra Food and Drug Administration to pay Rs 5 lakh in compensation to a Pune eatery following the suspension of its operating licence.
A bench comprising Justices MM Sundresh and P B Varale quashed the compensation order after hearing an appeal filed jointly by the state government and the regulatory authority. The state submitted that the regulatory action had been executed strictly to protect public health after officials tested a sweet sample and found it unsafe.
Food Poisoning Complaint and Inspection
The dispute originated from an inspection conducted on June 12 by officers from the FDA Pune division at Gurunanak Dairy and Sweets. The inspection was triggered by a complaint alleging food poisoning linked to the establishment.
During the visit, food safety personnel collected a sample of ‘malai pedha’ for chemical analysis. Subsequent laboratory testing confirmed that the sweet was unsafe for consumption.
Inspectors also documented multiple compliance violations at the premises, citing deficiencies in overall hygiene, record maintenance, product labelling, and employee personal hygiene. Based on these findings, the FDA suspended the eatery’s licence under the provisions of the Food Safety and Standards Act, 2006.
High Court Directive and Supreme Court Appeal
Gurunanak Dairy and Sweets challenged the licence suspension before the Bombay High Court under the Food Safety and Standards Act.
The High Court rejected the regulatory agency’s submissions. Upon being informed that the establishment had suffered financial losses amounting to Rs 9 lakh over the course of a month due to the suspension, the High Court instructed the FDA to pay Rs 5 lakh in compensation to the business.
The state government and the FDA subsequently approached the Supreme Court against the High Court’s compensation order, leading to the decision by the apex court bench to strike down the award.
