The Bombay High Court has forced the Maharashtra Food and Drugs Administration (FDA) to withdraw two enforcement orders after criticising the regulator for acting with "undue haste" and failing to follow the principles of natural justice.
In the first case, the FDA withdrew its order cancelling the drug sale licences of Cipla Pharma & Life Sciences Ltd's carrying and forwarding facility at Wadki in Pune. The licences had been cancelled from August 27 following violations detected during a follow-up investigation into the packaging and recall of Reactin Plus tablets.
A bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad criticised the FDA's procedure, particularly its decision to call a company representative for a hearing on a state government-declared public holiday.
"You are doing a laudable and appreciative job, but now you are going overboard," the court said, describing the FDA's conduct as "high-handed". It said the licence cancellation was carried out through a procedure that violated the principles of natural justice.
The court also criticised the FDA over its action against five restaurants operating on the Mumbai Cricket Association premises in Bandra-Kurla Complex.
The regulator agreed to withdraw its order suspending the restaurants after a fresh inspection found that they were 88 per cent compliant with food safety requirements.
The FDA had suspended their licences because the restaurants were being operated by M/s Shirke Infrastructure, although the licences were issued in the MCA's name. The court said there was no legal provision prohibiting such an arrangement.
The bench accused the FDA of taking a "pedantic instead of a pragmatic view" despite its earlier direction to apply its mind to the matter.
"We are tired of scolding the department and officers all the time. It is now time to pass stinging orders. We will issue contempt action against the concerned officers. Let them convince us or go to jail," the court said.
Following the warning, the FDA agreed to issue a fresh notice to the MCA, hear it on the contractual arrangement with Shirke Infrastructure and pass a reasoned order.
The court accepted the proposal and said the suspension order stood vacated because the restaurants were now compliant, allowing them to reopen.