Delhi HC quashes FSSAI order directing Red Bull to remove ‘energy drink’ label

New Delhi: The Delhi High Court on Tuesday set aside an order of the Food Safety and Standards Authority of India (FSSAI) directing Red Bull to stop using the term “energy drink” on its beverage products, holding that the company was not given an opportunity to respond before the order was passed.

Justice Amit Mahajan set aside the June 30 FSSAI order, observing that the principles of natural justice had been violated.

“The petition is allowed. The impugned order (of FSSAI) is set aside. The respondent is at liberty to pass a fresh order after according a hearing to the petitioner,” the court said while dictating the order.

The court noted that it was undisputed that FSSAI’s June 30 direction to Red Bull not to use the term “energy drink” was issued without giving the company an opportunity to file a reply or provide an explanation.

The court said FSSAI was free to take a fresh decision after following due process, including issuing a show-cause notice to Red Bull and giving the company an opportunity of hearing.

FSSAI informed the court that no separate show-cause notice had been issued, contending that its June 30 letter itself constituted a notice. It also said that its concern was limited to the use of the words “energy drink” and did not relate to the product itself.

The court passed the order on Red Bull’s plea challenging the June 30 FSSAI direction requiring the company to discontinue using the term “energy drink” on its beverage products.

The court allowed the petition on the limited ground that the principles of natural justice had not been followed.

Red Bull told the court that it had been using the “energy drink” descriptor for its beverage products in India since 2002 and that FSSAI had previously recognised its use for the relevant category of caffeinated beverages.