Supreme Court overturns compensation order for Pune dairy after licence suspension

Supreme Court on Oct 5 quashed the Bombay High Court order that had directed the Maharashtra Food and Drug Administration to pay ₹5 lakh compensation to Gurunanak Dairy & Sweets of Pune. The High Court had earlier, on Aug 17, revoked the suspension of the shop’s food licence and ordered the payment after the establishment claimed losses from a licence suspension. The suspension stemmed from a June 12 inspection by FDA food‑safety officers in Pune following a consumer complaint of food poisoning. Inspectors recorded breaches in hygiene, record‑keeping, product labeling and staff personal hygiene, and a sample of the shop’s “Malai Pedha” was declared unsafe. Under the Food Safety and Standards Act, 2006, the licence was suspended. The proprietor appealed the suspension on June 15, filed a statutory appeal with the FDA Commissioner, and submitted a compliance report on July 9. A re‑inspection on July 13 led to no immediate reinstatement, prompting the business to file Writ Petition No. 9905 of 2026 in the Bombay High Court. Maharashtra argued before the Supreme Court that the FDA acted promptly, the appeal was pending, and there was no malicious delay, so a financial penalty was unwarranted. Accepting these points, the apex court set aside the compensation directive.

Context

The Food Safety and Standards Act empowers state FDA officials to suspend licences when products pose health risks, but compensation claims must follow established procedural safeguards.