The Delhi High Court on Tuesday quashed a food regulator’s direction that would have stopped Red Bull from describing its caffeinated drinks as “Energy Drink.” The court held that the company was never heard before the order was issued.
Justice Amit Mahajan set aside the order of the Food Safety and Standards Authority of India (FSSAI), which was dated June 30. The court left the door open for the regulator. FSSAI can take a fresh decision on the matter, provided it first follows the principles of natural justice and lets Red Bull put its side across.
What Red Bull challenged
The Austrian beverage maker went to court against two things. The first was the June 30 order telling it to drop the “Energy Drink” descriptor from its range of caffeinated beverages. The second was a communication of July 17, which asked food safety authorities in the States and Union Territories to act against products the regulator considered non-compliant.
The company’s arguments
Red Bull told the court that it has sold its products in India under the “Energy Drink” description since 2002. It argued that FSSAI passed the order without issuing a show-cause notice and without giving it a hearing.
It also said the July 17 communication had real consequences on the ground. According to the plea, enforcement action followed, and its products were seized at several locations.
What the order means
The ruling turns on process and does not decide whether the term “Energy Drink” is permissible under food safety rules. That question remains open for FSSAI to examine again, this time with Red Bull heard first.
The case is titled Red Bull v. Union of India & Ors.
