HC revokes Navi Mumbai restaurant’s FSSAI licence suspension, warns FDA of compensation over delay

MUMBAI: The Bombay High Court on Monday revoked the suspension of the FSSAI licence of a Navi Mumbai bar and restaurant, observing that the Food and Drug Administration (FDA) had failed to restore the licence even after the establishment was found 100% compliant with food safety norms during a re-inspection

MUMBAI: The Bombay High Court on Monday revoked the suspension of the FSSAI licence of a Navi Mumbai bar and restaurant, observing that the Food and Drug Administration (FDA) had failed to restore the licence even after the establishment was found 100% compliant with food safety norms during a re-inspection. The court also indicated that it would consider directing the FDA to compensate the hotel for the financial losses caused by the delay.

A division bench of acting chief justice Ravindra V Ghuge and justice Gautam Ankhad directed the FDA to carry out a fresh inspection of Pawan Bar and Restaurant in CBD Belapur. The bench also asked the hotel to place on record the losses it suffered from July 14 onwards, the day it was awarded full compliance in the re-inspection.

The case stems from a surprise FDA inspection conducted on June 29, during which the restaurant received a 69% compliance score. The following day, the concerned officer suspended its FSSAI licence and ordered it to “cease and desist” from operating its food business. In a separate finding, the officer also noted that a godown used for storing raw material for the restaurant was operating without the required licence.

During Monday’s hearing, senior advocate Mayur Khandeparkar, along with advocates Shubhra Swami and Sagar Shetty, argued that the delay had also led to the suspension of the hotel’s liquor licence because the food business licence is the principal licence. As a result, the state excise authorities suspended the liquor licence as well.

“It is like a domino effect and is in violation of my client’s fundamental right to carry on business,” the lawyers submitted. Questioning the FDA’s inaction, the bench asked why the suspension had not been revoked immediately after the re-inspection certified full compliance.

“The licence should have been restored immediately after that,” the judges observed. The bench further questioned who would compensate the hotel for the losses suffered after July 14, observing that the FDA would have to answer for the lapse if it failed to revoke the suspension despite its own inspection certifying full compliance.

The government pleader informed the court that the hotel’s appeal against the suspension order was pending before the authorities and a decision was awaited. Acting chief justice Ghuge, however, remarked that while the FDA had remained “sleeping for years” and had now become active under FDA Commissioner Tukaram Mundhe, the court could not ignore the injustice caused in the present case.

“Your problem is that the department was sleeping all these years and now it has woken up. You have a laudable chief... Here you are giving a certificate of 100%. Licence should have been revoked. Who will undo the damage caused to the petitioner?” the bench observed.

The court set aside the suspension of the hotel’s FSSAI licence and posted the matter for further hearing on August 5, when it is expected to consider whether the FDA should compensate the establishment for the losses it suffered during the period the suspension remained in force despite its full compliance.