Court emphasizes swift action by authorities to restore licenses post-compliance, warns against unnecessary litigation burden on businesses
In a significant ruling delivered on August 28, 2026, the Bombay High Court (Division Bench) laid down clear directives for the enforcement of license suspensions under the Food Safety and Standards Act, 2006. The judgment arose from a writ petition filed by Siddharth Agro, a proprietary concern engaged in the procurement and supply of raw milk, challenging the suspension of its food license by Maharashtra authorities due to alleged non-compliance with regulatory standards.
The Court noted that Siddharth Agro held a valid license but faced suspension on July 15, 2026, after officials found deficiencies during an inspection. Despite a subsequent re-inspection on July 29, 2026, the authorities claimed that some deficiencies persisted, thus justifying the continuation of the suspension. However, Siddharth Agro contended that all pointed-out deficiencies had been rectified, urging the authorities to conduct a fresh inspection and revoke the suspension if compliance was confirmed.
The Court directed Respondents Nos. 3 and 4—the licensing authorities—to undertake a fresh inspection on August 31, 2026, and prepare an auto-generated compliance report detailing marks and percentage of compliance. It emphasized that once compliance was established via this report, the suspension or cancellation order must be revoked forthwith, and the establishment’s license restored without requiring the petitioner to approach the Court again.
Highlighting a recurring problem, the Court observed that many establishments face prolonged suspension or cancellation even after rectifying deficiencies, causing severe financial loss and disruption to their business operations and supply chains. This unnecessary delay forces businesses into repetitive litigation, burdening both the establishments and judicial resources.
The Court underscored the importance of a fair, efficient, and proportionate regulatory mechanism and ordered that authorities must act promptly to revoke suspensions once compliance is demonstrated. It referred to a similar case (M/s. Gurunanak Dairy & Sweets v. Union of India) where compensatory penalties were imposed on authorities for deliberate inaction.
In conclusion, the Court ruled that the suspension order against Siddharth Agro shall stand automatically revoked upon issuance of the auto-generated compliance report confirming legal compliance. The authorities are directed to issue formal orders and take consequential steps promptly, ensuring that businesses are not unjustly penalized due to administrative inertia.
This judgment sends a strong message to regulatory authorities across India to uphold procedural fairness and avoid causing undue hardship to compliant food businesses, thereby fostering a more business-friendly environment within the ambit of food safety regulations.
Bottom Line:
Revocation of suspension of license under Food Safety and Standards Act, 2006 - Suspension of license due to non-compliance with regulations - Establishments that have duly complied with deficiencies cannot be penalized further due to inaction by authorities - Authorities must revoke suspension/cancellation orders once compliance is established through an auto-generated report.
Statutory provision(s):
Food Safety and Standards Act, 2006; Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011
Siddharth Agro v. State of Maharashtra, (Bombay)(DB) : Law Finder Doc Id # 2973654
