The Delhi High Court has ruled that it has jurisdiction over a petition challenging FSSAI action against Fortune Soya Health Refined Soyabean Oil. According to reports from Business Standard, Justice Swarana Kanta Sharma held that the petition cannot be held lacking in territorial jurisdiction, as the foundational actions taken by FSSAI in Delhi form the basis of the reliefs sought. The court noted that both FSSAI authorities are situated within the territorial jurisdiction of the court, making the respondents amenable to its jurisdiction. The authorities had initially questioned whether the Delhi High Court was the appropriate forum to hear the matter, arguing that AWL Agri Business is based in Gujarat and the product is manufactured and marketed from outside Delhi.
On July 17, FSSAI issued a show cause notice to AWL Agri Business Limited alleging contravention of the Food Safety and Standards (Advertising and Claims) Regulations, 2018, and the Food Safety and Standards (Labelling and Display) Regulations, 2020. As reported by Business Standard, the notice called upon the company to clarify within seven days why action should not be initiated under the Food Safety and Standards Act. On the same day, FSSAI issued a letter to commissioners of food safety of all states and union territories, directing them to ensure that products described as 'non-compliant products' are not manufactured, distributed, marketed or sold in their jurisdictions. The company was asked to explain within seven days why action should not be initiated against it under the Food Safety and Standards Act.
According to the petition, the letter effectively treated 'Fortune Soya Health Refined Soyabean Oil' as a 'non-compliant product' and exposed the company and its distributors, stockists, wholesalers and retailers across India to enforcement action. As reported by Business Standard, in August, the petitioner received communications from distributors that food safety officers visited their premises and directed stoppage of sale of the product. Following this, retailers declined fresh orders and sought return of existing stock. AWL Agri Business has argued that the FSSAI communication effectively placed its Fortune Soya Health Refined Soyabean Oil in the category of a non-compliant product, exposing the product and its distributors, stockists, wholesalers and retailers to enforcement action across the country.
AWL Agri Business Limited received Food Safety and Standards Authority of India (FSSAI) notices over claims of being '100% Veg' and 'Cholesterol Free For Healthy Lifestyle' for its product. According to the plea, the company challenged the show cause notice prohibiting manufacture and sale of 'Fortune Soya Health Refined Soyabean Oil' for alleged misleading label declarations and claims. The respondent authorities had opposed the maintainability of the petition on territorial jurisdiction grounds, arguing that no part of the cause of action arose within Delhi's jurisdiction as the company is based in Gujarat and the product is manufactured and marketed from outside Delhi. The petitioner further claimed that, during August, some of its distributors informed the company that food safety officials had visited their establishments and directed them to stop selling the product.
The Delhi High Court has asked the authorities to file their responses within four weeks and listed the matter for further hearing on November 5. As reported by Business Standard, the court's order was issued on Monday, establishing the timeline for the next hearing and response filing requirements. The Delhi High Court will now consider the responses from the Centre and FSSAI before taking the matter forward, with the matter scheduled for further hearing on November 5.
