New Delhi, Oct 6 The Delhi High Court on Tuesday ordered no coercive action against PepsiCo and Monster Beverages, which have been directed by the FSSAI to drop the descriptor "energy drink" from its beverages.
The court allowed the two companies to sell their existing stocks of beverages labelled as "energy drink" but made it clear that they cannot manufacture any more products bearing the descriptor.
"Your existing stocks will be sold," Justice Amit Mahajan said while passing the order.
While PepsiCo manufactures Sting Energy and Adrenaline Rush, Monster Beverages sells its product under the name Monster Energy.
PepsiCo and Monster approached the high court challenging the orders passed by the Food Safety and Standards Authority of India (FSSAI) directing them to drop the label "energy drink". The FSSAI has also directed food safety officers across India to seize the products.
The court said it is staying the FSSAI order to the extent that no coercive action will be taken against the companies. However, it does not mean that the companies can continue manufacturing more products with the label, it said and listed the matter for further hearing on November 5.
The court also stayed the June 30 order of the FSSAI directing Reliance Consumer Products Limited (RCPL) to drop the descriptor "energy drink" from its product Campa Energy Drink - Gold Boost.
The court noted that the FSSAI issued the directions without giving a show-cause notice or an opportunity of hearing to RCPL, in departure from the settled principles of natural justice.
RCPL was represented in the court by law firm Karanjawala and Co.
During the proceedings, the counsel for the FSSAI submitted that after the authority passed the order directing the companies to drop the "energy drink" label, there was a meeting with the industry body in mid-July.
He said the industry body agreed to drop the label, but this fact was not brought before the court earlier when it had set aside the order against the company.
To this, the company's lawyer said the concession to drop the "energy drink" label was made under protest.
The court said since orders in the Campa and Red Bull matters have already been passed, the FSSAI can move applications in those cases, seeking correction.
