Bombay High Court: FDA Must Pay Compensation for Sweet Shop Suspension

• Bombay High Court orders FDA to pay ₹5 lakh as compensation to a Pune-based sweets retailer.
• Court sets aside suspension order issued by FDA and allows shop to reopen its operations.
• Decision highlights importance of promptly addressing regulatory appeals and ensuring compliance with sanitation standards.

This is plain and simple perversity. Absolute strange policies. Least said, the better. Once you clear with 98%, you say, now, go and file an appeal. What is this? Torturing citizens.

A recent ruling by the Bombay High Court has significant implications for businesses in Maharashtra, particularly those in the food industry. In a case involving Gurunanak Dairy and Sweets, a Pune-based sweets retailer, the court set aside the suspension order issued by the FDA and allowed the shop to reopen its operations. The decision was made after a division bench of Acting Chief Justice Ravindra V Ghuge and Justice Gautam A Ankhad reviewed the facts of the case.

The court's ruling highlights the importance of promptly addressing regulatory appeals and ensuring compliance with sanitation standards to avoid business disruptions.

Gurunanak Dairy and Sweets had its food licence suspended by the FDA on June 12 following a complaint about food poisoning and sanitation concerns. However, the retailer challenged the order before the FDA Commissioner on June 15 and submitted a compliance report on July 9. A re-inspection by an FDA officer on July 13 generated an automated score of 35 out of 36 marks, indicating that the shop had achieved 98% hygiene compliance.

The court's decision to set aside the suspension order and permit the shop to reopen its operations suggests that the FDA's actions may have been overly stringent. The ruling also implies that the FDA should have taken a more nuanced approach in dealing with regulatory appeals.

The Bombay High Court was critical of the FDA's handling of the case, describing its actions as 'torturing citizens'. The court noted that a pending appeal against the suspension order before an appellate authority was no bar to re-inspection and immediate revocation. The judges also expressed frustration with the FDA's policy of requiring businesses to file appeals even after achieving high levels of compliance.

The court's decision has significant implications for food-related businesses in Maharashtra, highlighting the importance of promptly addressing regulatory appeals and ensuring compliance with sanitation standards.

This ruling highlights the importance of promptly addressing regulatory appeals and ensuring compliance with sanitation standards to avoid business disruptions. Lawyers advising clients on food-related businesses should be aware of this precedent for revoking suspension orders and facilitating re-inspection.

Source: Original reporting via The Times of India