The Delhi High Court on Tuesday set aside an order issued by the Food Safety and Standards Authority of India (FSSAI) directing Red Bull to discontinue the use of the term "Energy Drink" on its products.
Justice Amit Mahajan allowed Red Bull's petition after observing that the company had not been given an opportunity to file a reply or explain its position before the June 30 order was passed. The court held that the principles of natural justice had not been followed.
The court, however, did not decide the larger question of whether Red Bull can legally use the "Energy Drink" descriptor. It clarified that FSSAI is free to reconsider the matter and pass a fresh order after following due process, including issuing a show-cause notice and giving the company an opportunity of hearing.
Red Bull had challenged the June 30 directive requiring it to discontinue the "Energy Drink" descriptor for its caffeinated beverages. The company also challenged a July 17 communication asking food safety authorities across states and Union Territories to take action against products considered non-compliant.
According to Red Bull's petition, the company has marketed its products in India under the "Energy Drink" descriptor since 2002. It argued that the FSSAI directive was issued without a show-cause notice or an opportunity to be heard. The company also claimed that the subsequent communication had led to enforcement action, including seizures of its products at some locations.
During the proceedings, FSSAI maintained that the June 30 communication itself could be treated as a notice and that its concern was with the use of the words "Energy Drink", rather than the product itself. The court nevertheless held that Red Bull should have been given an opportunity to respond before the order was issued.
The ruling means FSSAI can now reconsider the issue after following the required legal procedure. The matter also has wider implications for the energy beverage sector, as several companies have faced scrutiny over the use of the "Energy Drink" descriptor.
