Court stays FSSAI's directive on product labelling, allowing FDC Limited eight months to exhaust existing stock and modify labels.
In a significant ruling, the Delhi High Court has granted interim relief to FDC Limited, a well-known manufacturer of hydration and electrolyte drinks, against a notice issued by the Food Safety and Standards Authority of India (FSSAI). The notice directed the cessation of specific product descriptors and resulted in the seizure of stock valued at over Rs.1.12 crore. The court, presided over by Dr. Swarana Kanta Sharma, J., stayed the implementation of the FSSAI notice for eight months, allowing the petitioner to exhaust existing stock and modify product labels.
FDC Limited, which has been in operation since 1940 and holds a valid FSSAI license, markets its hydration product under the brand name 'Enerzal'. The dispute arose when FSSAI issued a notice on May 26, 2026, directing the company to stop using descriptors such as 'electrolyte' and 'electrolyte drink' for its products. The notice did not specify the legal basis under the Food Safety and Standards Act, 2006, for such directives.
The petitioner argued that the descriptors have been used since 2018 and were scrutinized during each license renewal without objection, the latest being in January 2026. FDC Limited contended that the notice violated Section 32 of the Food Safety and Standards Act, which requires an improvement notice to be issued before any coercive action, such as seizure, is taken.
The respondents, represented by FSSAI, argued that the notice was part of a regulatory exercise to ensure truthful labelling and protect consumer interests. They stated that the descriptors used by FDC Limited could mislead consumers and potentially fall under the regulatory domain of the Central Drugs Standard Control Organisation (CDSCO).
After hearing both sides, the court noted that the improvement notice under Section 32 had not been issued to FDC Limited. Consequently, it granted interim relief by staying the operation of the impugned notice for eight months. During this period, FDC Limited is required to exhaust its existing stock and amend its product labels. The court also restrained the respondents from further seizure or destruction of the products during this time.
This ruling is seen as a temporary reprieve for FDC Limited, allowing the company to adjust to the regulatory requirements without immediate financial losses. The matter is scheduled for further hearing on December 10, 2026.
Bottom Line :
Food Safety and Standards Act, 2006 - Interim relief granted to petitioner where improvement notice under Section 32 was not issued before issuing a directive to cease the use of specific product descriptors and seizing stock.
Statutory provision(s): Food Safety and Standards Act, 2006 Section 32, Section 18(1)(a), Section 38.
FDC Limited v. Union of India, (Delhi) : Law Finder Doc id # 2968609
