FSSAI License Suspension Is To Protect Public Health, Cannot Continue Once Establishment Achieves Compliance: Bombay High Court
The Bombay High Court has held that suspension of a food licence for non-compliances having the propensity to harm public health cannot be continued indefinitely once the deficiencies have been rectified and the establishment achieves “exemplar” compliance on re-inspection. The Court observed that the consequence of compliance of the deficiencies should result in revocation of the suspension, with continued monitoring as mandated by law.
A division bench of Justice Sharmila U. Deshmukh & Justice Neeraj P. Dhote was hearing a petition filed by Hotel Alankar challenging the order of suspension of license dated 8th July 2026 issued by the Respondent No.3–Assistant Commissioner (Food) and Designated Officer, and for revocation of the suspension of Petitioner's FSSAI License in light of the 97% compliance recorded in the re-inspection report dated 31st July 2026.
The establishment had initially scored 69% during a surprise inspection on July 7, 2026, after which its licence was suspended on July 8 under Section 32(3) of the Food Safety and Standards Act, 2006. The re-inspection conducted on July 31 recorded 97% compliance. It was contended that the impugned appellate order does not take into consideration the re-inspection report of 31st July 2026.
The Court noted that the July 31 re-inspection report showed 97% compliance and that the compliance, as per the Respondent's own grading is “exemplar”. The Court observed that the partial compliances as regards testing of food material and use of potable water can be assessed only if the establishment is permitted to continue its operation.
“It is surprising that having allotted 97% percentage certifying the compliance as “exemplar”, the appellate authority has continued the suspension. The appellate authority's order does not disclose any consideration of the re-verification report of 31st July, 2026,” the Court remarked.
The Court observed that the statutory scheme under Section 32 provides for an improvement notice for non-compliance and that forthwith suspension is only in case of harm to public health. It held that non-consideration of the re-verification report makes the whole exercise of re-verification futile; continued suspension can be ordered only on consideration of the re-verification report and on finding of continued non-compliance.
The Court noted that object of suspension of license as mandated by the proviso to Sub-Section (3) of Section 32 of the Food Safety Act is to protect the public health, and that suspension cannot be continued infinitely. It observed:
“The consequence of compliance of the deficiencies should, in our view, result in revocation of the suspension of license and continued monitoring as mandated by law to ensure statutory compliances. The establishment cannot be put under suspension even after obtaining “exemplar” compliance.”
The Court emphasized that continued operation of the establishment during the period of suspension could invite proceedings under Sections 55 and 63, but did not justify continued suspension.
Accordingly, the Court quashed and set aside the appellate authority's order dated August 19, 2026, revoked the suspension order dated July 8, 2026 and restored the licence.
Case Title: Hotel Alankar v. State of Maharashtra [Writ Petition No. 3806 of 2026]