Court directs penalty provisions to address violations and emphasizes that suspension cannot continue indefinitely post compliance under Food Safety and Standards Act, 2006
In a significant judgment dated 8th September 2026, the Bombay High Court (Circuit Bench at Kolhapur) quashed the suspension order imposed on Hotel Alankar's Food Safety and Standards Authority of India (FSSAI) license and directed its restoration. The Court held that the suspension of the license, originally ordered on 8th July 2026 under Section 32(3) of the Food Safety and Standards Act, 2006 (hereinafter "Food Safety Act"), was no longer sustainable after a re-inspection report dated 31st July 2026 demonstrated 97% compliance with food safety norms, qualifying the establishment as "exemplar" in compliance grading.
The background to the case involved a surprise inspection conducted on 7th July 2026 by the Food Safety Officer, which recorded multiple deficiencies including unhygienic conditions, unauthorized sale of alcoholic and other beverages, improper segregation of vegetarian and non-vegetarian food items, and use of unsafe cooking oil. Based on these findings, the Assistant Commissioner (Food) issued an immediate suspension of the license. Hotel Alankar challenged the suspension through a statutory appeal which was dismissed by the appellate authority on 19th August 2026, citing continued violations such as operating during suspension and non-compliance with license conditions.
However, the petitioner approached the High Court, submitting that the establishment had rectified the noted deficiencies, as evidenced by the re-inspection conducted on 31st July 2026, where the establishment scored 106 out of 110 marks, reflecting substantial compliance. The Court found that the appellate authority's order did not adequately consider this re-inspection report and had relied excessively on the initial suspension order and proprietor's knowledge rather than the actual compliance status.
The Court analyzed the statutory framework under Section 32 of the Food Safety Act, which mandates the issuance of an improvement notice upon non-compliance and allows suspension or cancellation of license only when deficiencies persist or public health is at risk. The Court observed that indefinite suspension post compliance defeats the purpose of the Act and that any breaches such as unauthorized operation during suspension or sale of unlicensed food products should be addressed through penalties under Sections 55 and 63, rather than extended suspension.
Highlighting the grading system used in the re-inspection, the Court noted that a score above 90% placed Hotel Alankar in the "exemplar" compliance category, which should ordinarily warrant revocation of suspension to allow the establishment to continue operations under monitoring.
Accordingly, the Court set aside the appellate authority's dismissal of the appeal and restored Hotel Alankar's FSSAI license. The petitioner was directed to file an undertaking refraining from sale of food products not covered by the license, and the Court left open the possibility for the authorities to impose penalties for any violations detected during the suspension period or in the future.
This judgment underscores the principle that while protecting public health is paramount, enforcement actions such as license suspension must be proportionate, time-bound, and responsive to actual compliance, balancing regulatory oversight with business continuity.
Bottom Line:
Food Safety and Standards Act, 2006 - Suspension of FSSAI license - Compliance with deficiencies noted during inspection is crucial - Suspension cannot continue indefinitely post compliance - Revocation of suspension warranted if compliance is achieved.
Statutory provision(s): Food Safety and Standards Act, 2006 Sections 32, 32(3), 32(4), 55, 63; Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 (Conditions Nos. 3, 4, 7, Schedule IV)
