Mumbai, August 18: The Bombay High Court has directed the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh in compensation to a dairy and sweet shop owner in Pune. The court criticized the FDA for suspending the shop’s license despite a 98% compliance rate.
Acting Chief Justice Ravindra Ghuge and Justice Gautam Akhand annulled the suspension order from June 12, allowing Gurunanak Dairy and Sweets to resume its retail operations immediately.
The owner of Gurunanak Dairy and Sweets had challenged the FDA’s actions in court, claiming a financial loss of ₹8.74 lakh due to the suspension. The judges deemed the FDA’s policy strange and flawed. They ordered the FDA to compensate the shop owner within a month.
The court remarked that while the FDA’s intentions were commendable, they should have revoked the license suspension upon discovering the 98% compliance. The suspension followed a food poisoning incident on June 11. According to the petition, the FDA suspended the food license on June 12 without issuing a notice for rectification or conducting a hearing. A re-inspection on July 13 confirmed the 98% compliance, yet the suspension remained in effect.
An appeal was filed on July 15 before the FDA Commissioner, but no decision was made, prompting the retailer to approach the High Court. Advocate Abhijit Desai, representing Gurunanak Dairy and Sweets, referenced a similar case where the High Court ruled that a suspension order becomes invalid upon confirming 100% compliance in a new inspection.
The judges reminded that while they had previously acknowledged the FDA’s commendable efforts, they were overstepping. They emphasized that the license suspension should have been revoked immediately upon achieving 98% compliance. The court also noted that the state should not use the pending appeal as an excuse for the suspension.
When asked about the shop’s daily earnings, Desai stated it was approximately ₹25,000. He highlighted that 34 days had passed since compliance was achieved, resulting in a loss of nearly ₹8.5 lakh.
The court concluded that the FDA should have promptly revoked the suspension order upon the shop achieving 98% compliance. They deemed it appropriate to instruct the FDA to pay ₹5 lakh in compensation for the losses incurred by the petitioner. The FDA is required to deposit this amount in the High Court within 30 days, allowing the petitioner to withdraw it freely.
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