Mumbai: In a relief to State Food and Drug Administration (FDA), Supreme Court on Monday quashed compensatory costs of Rs 5 lakh which Bombay High Court had saddled it with in Aug. HC had directed FDA to pay the amount as compensation to a Pune eatery for loss caused by an unrevoked suspension order.
Gurunanak Dairy & Sweets, 20 years in the business, had petitioned HC to challenge the June 2026 FDA action of suspension of its licence under Food Safety and Standards Act . A month later in July, FDA found 98% compliance with rules but didn’t revoke the suspension, the sweet shop had submitted. FDA before HC said it didn’t revoke the suspension since the eatery had filed and argued an appeal which was reserved for judgement on Aug 11.
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On Aug 17, then Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad of HC said it found FDA’s submissions “unconvincing” and on learning the establishment’s loss for a month was Rs 9 lakh, directed FDA to pay it Rs 5 lakh as compensation and opened the shop for business. Besides, the law provides that in food licence suspension cases “no compensation should be payable as per regulation 2.1.8(5) of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011,” the Special leave petition before SC said. FDA cited a food poisoning complaint for its raid and staff hygiene, labelling and sanitation issues to shutter the sweet shop. The state and FDA headed by commissioner Tukaram Mundhe went to SC, arguing that HC had erred and directed compensation even when none was sought in the petition. The SC bench of Justices MM Sundresh and P B Varale, after hearing State counsel Siddharth Dhamadhikari and Shreerang Varma and Dairy’s counsel Satyajeet Desai, quashed the compensatory costs imposed by the HC order. Download the TOI App.