The Delhi High Court on Tuesday set aside an order issued by the Food Safety and Standards Authority of India (FSSAI) that had directed Red Bull to stop using the term “energy drink” on its products. Justice Amit Mahajan ruled that the regulatory authority had violated the principles of natural justice by issuing the order without giving the company an opportunity to submit its response or present its case before taking action.
The court observed that the FSSAI’s June 30 order had been passed without issuing a separate show-cause notice or granting Red Bull a hearing. While the authority argued that its June 30 communication itself constituted a notice and that the issue was limited to the product’s description rather than the beverage itself, the court held that due process had not been followed. It therefore allowed Red Bull’s petition and gave the FSSAI the liberty to reconsider the matter after following the prescribed legal procedure.
Red Bull informed the court that it has been using the “energy drink” label in India since 2002 and that the description had previously been recognised by the FSSAI for caffeinated beverages. The High Court clarified that its ruling was based solely on procedural grounds and did not decide the merits of whether the company can continue using the label. The FSSAI may now issue a fresh notice, hear the company, and pass a new order in accordance with the law.