FDA action in public interest: SC scraps Rs 5 lakh compensation to Pune shop order

The Supreme Court on Monday set aside an order of the Bombay High Court directing the Maharashtra Food and Drug Administration (FDA) to pay Rs 5 lakh in compensation to a dairy and sweets shop whose licence was suspended, holding that the FDA's action was justified in the interest of public health.

The FDA, under the leadership of Thukaram Mudhe, had suspended the food licence of Gurunanak Dairy and Sweets following an inspection conducted in June in connection with a complaint regarding food poisoning.

According to the state government's submissions before the Supreme Court, officials of the FDA Pune found multiple deficiencies relating to sanitation, record-keeping, labelling and the personal hygiene of employees.

As an instance, a sample of malai pedha, a dairy product, was also collected from the establishment for analysis, and the sample was subsequently declared unsafe, the government told the court.

In view of the findings and the unsafe food sample, the FDA suspended the establishment's food licence under the provisions of the Food Safety and Standards Act, 2006.

The shop owners challenged the action by filing a statutory appeal before the FDA Commissioner, and the establishment subsequently submitted a compliance report in July. The FDA then conducted a re-inspection just four days after receiving the compliance report.

The establishment later approached the Bombay High Court, challenging the FDA order, and the High Court lifted the suspension of the food licence. However, citing the financial loss caused to the business, it also directed the FDA to deposit Rs 5 lakh as compensation to the establishment.

The Maharashtra government challenged the compensation direction before the Supreme Court.

The state government argued that the FDA's action was taken in response to a food-poisoning complaint and was aimed at protecting public health. It maintained that the suspension of the licence was based not merely on the complaint but also on deficiencies detected during the inspection and the unsafe finding in the malai pedha sample.

The government further submitted that the FDA had acted promptly throughout the process. In particular, it highlighted that officials conducted a re-inspection within four days of receiving the establishment's compliance report.

The state also pointed out that the statutory appeal filed by the food business operator was pending before the Commissioner, FDA, and had been scheduled for a decision.

According to the state, the statutory appellate process should have been allowed to run its course instead of being interfered with. The government argued that the decision of the competent authority in the pending appeal should have been awaited.

The state further contended that there was no malice, arbitrariness or deliberate delay on the part of the FDA. It argued that the time taken in good faith while following the statutory process could not be treated as a basis for imposing a financial penalty or compensation on the state government.

The Supreme Court, by its October 5 order, set aside the Bombay High Court's directive requiring the Maharashtra FDA to pay Rs 5 lakh in compensation to the establishment.- Ends