Suspension Of Food Business Licence Must End On Rectifying Deficiencies, Can't Force Them Into Litigation: High Court To Maharashtra FDA
After noting a pattern of the Maharashtra Food & Drugs Administration (FDA) in dealing with cases of licence suspensions of establishments, the Bombay High Court recently made it clear that once an establishment, whose licence has been suspended by the authority, rectifies the deficiencies and an autogenerated report indicates compliance, the authority must revoke the suspension. A...
After noting a pattern of the Maharashtra Food & Drugs Administration (FDA) in dealing with cases of licence suspensions of establishments, the Bombay High Court recently made it clear that once an establishment, whose licence has been suspended by the authority, rectifies the deficiencies and an autogenerated report indicates compliance, the authority must revoke the suspension.
A division bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad said the FDA must not force such establishments to approach the court against its licence suspension.
"We have noticed in several matters listed before us, that even after an establishment has duly complied with the deficiencies pointed out by the Respondents, the suspension or cancellation order is not revoked. The result of such inaction is extremely serious, as the establishment is prevented from carrying on its business. This causes financial loss to the establishment and has a cascading effect on its employees and supply chains. In our view, there cannot be any justification for requiring an establishment to approach this Court merely to secure revocation of an order which has ceased to have any efficacy," the judges said in an order passed on August 28.
Such litigation, the bench opined, is wholly avoidable and that it unnecessarily burdens both, the establishment and the Court. The bench further said that an establishment which has cured the deficiencies cannot be penalised further due to the inaction of the FDA.
"To prevent recurrence and to ensure that the statutory regulatory mechanism operates in a fair, efficient and proportionate manner, we direct that, in all such cases, once the Respondent authority is satisfied through the auto-generated report that the deficiencies have been duly rectified as per the applicable statutory and regulatory requirements, the Authority shall forthwith revoke the suspension or cancellation order," the bench ruled.
The case stems from a petition filed by one Siddharth Agro, a milk chilling, storage and supplying outlet, which was inspected in July this year and certain deficiencies were noted, which led to the FDA cancelling its licence. The outlet then rectified the deficiencies as noted and urged the FDA authorities to re-inspect their premises and after satisfaction, revoke the suspension of their licence.
However, the FDA through its standing counsel Priyabhushan Kakade, pointed out upon a representation, the Authority's officials re-inspected the site and found that certain deficiencies continued to persist.
However, the petitioners argued that all the renotified deficiencies have too been rectified and thus urged for a fresh inspection.
Accordingly, the bench ordered fresh inspection of the premises and ordered revocation of the licence suspension.
Appearance:
Advocate Manoj Badgujar appeared for the Petitioner.
Additional Government Pleader Priyabhushan Kakade along with Assistant Government Pleader Pooja Patil represented the State.
Case Title: Siddharth Agro vs State of Maharashtra (Writ Petition 9946 of 2026)