Supreme Court quashes Bombay HC order directing Maharashtra FDA to pay ₹5 lakh compensation
The Supreme Court quashed a Bombay High Court order that directed the Maharashtra FDA to pay ₹5 lakh compensation to a Pune-based dairy and sweets establishment. The establishment's food license had been suspended due to hygiene deficiencies and an unsafe food sample, a decision the Supreme Court upheld as being in public interest.
Why it matters
This case highlights the balance between regulatory authority and business rights, setting a precedent for compensation claims against government agencies in food safety matters in India.
The Supreme Court on Monday (October 5, 2026) set aside a Bombay High Court direction ordering the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh compensation to a Pune-based dairy and sweets establishment whose food licence had been suspended following a food poisoning complaint.
The order was passed in State of Maharashtra & Ors. v. M/s Gurunanak Dairy & Sweets on October 5, according to a press note issued by the Maharashtra FDA.
The case dates back to June 12, when FDA food safety officers in Pune inspected the establishment following a complaint of food poisoning. Officials found deficiencies relating to hygiene, maintenance of records, labelling, and the personal hygiene of employees, following which its food licence was suspended under the Food Safety and Standards Act, 2006.
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