The Bombay High Court has refused to grant relief to Thane-based Udupi Swad restaurant in its challenge to the Food and Drug Administration’s suspension of its licence over the alleged serving of imitation paneer, observing that consumers have a right to know what they are eating.
A bench comprising Chief Justice Mahesh Chandra Tripathi and Justice Advait Sethna directed the restaurant to first pursue the legal remedies available under the Food Safety and Standards Act, 2006, before seeking further intervention from the High Court. The court’s order was passed during a hearing on Wednesday.
The restaurant had approached the court against the FDA’s action dated August 11. It argued that its licence had been suspended without a correction notice or a reasoned order. During the hearing, the restaurant’s lawyers also said that no order was available to challenge, making it difficult for an appellate authority to determine whether a correction notice should have been issued.
The restaurant further questioned whether the FDA’s July 31 notification concerning a ban on “analog paneer” could apply retrospectively to a sample collected in June. It also highlighted the operational impact of the licence suspension, telling the court that 18 employees depended on the restaurant for their livelihood.
The High Court had declined relief to the restaurant last month as well. On that occasion, the court reportedly said that petitioners whose actions harmed consumers would themselves have to bear some loss and inconvenience for a period. The latest order continues the court’s refusal to suspend the regulatory action at this stage.
The case places the consumer-information principle at the centre of a dispute over food regulation. The court’s observation means that the question is not limited to whether a restaurant can continue operating while contesting an FDA order; it also concerns whether customers are adequately informed about the nature of the food being served to them.
The restaurant’s challenge now has to proceed through the statutory remedies under the Food Safety and Standards Act. The court has not granted the requested relief against the FDA’s licence suspension, while the questions concerning the correction notice, the form of the regulatory order and the alleged retrospective application of the analog-paneer notification remain part of the legal dispute.
