SC Sets Aside Bombay HC Order Directing Maharashtra FDA to Pay Rs 5 Lakh

The Supreme Court has set aside a Bombay High Court order directing the Maharashtra Food and Drug Administration (FDA) to pay Rs 5 lakh compensation to a Pune eatery for losses allegedly caused by the suspension of its food licence.

A bench of Justices M M Sundresh and P B Varale quashed the compensation order after the Maharashtra government submitted that the FDA had acted following a complaint of alleged food poisoning and in the interest of public health. The case concerns Gurunanak Dairy and Sweets, which was inspected by FDA officials from Pune on June 12 following the complaint.

During the inspection, officials found deficiencies related to hygiene, record maintenance, food labelling and personal hygiene of employees, according to the state authorities. The FDA subsequently suspended the establishment's food licence under the Food Safety and Standards Act, 2006.

The eatery challenged the suspension before the Bombay High Court, which was not convinced by the FDA's submissions. The high court noted that the establishment had suffered losses of around Rs 9 lakh in a month and directed the FDA to pay Rs 5 lakh as compensation.

The Maharashtra government and the FDA then approached the Supreme Court, challenging the high court's direction.

Before the apex court, the state said the FDA's action was prompted by the food-poisoning complaint and that officials had collected a sample of malai pedha from the establishment for laboratory analysis.

The sample was subsequently declared unsafe, following which the food licence was suspended, the government submitted. The Supreme Court, after considering the state's submissions, set aside the high court's order awarding compensation to the eatery.

The ruling effectively upholds the FDA's action as having been taken in response to a food-safety complaint and on public health considerations.