The Delhi High Court granted an eight month stay on an FSSAI notice that barred FDC Limited from using the terms “electrolyte” and “electrolyte drink” on its Enerzal beverage, emphasizing that the regulator had failed to issue the statutory improvement notice required under Section 32 of the Food Safety and Standards Act before initiating seizure actions.
Background & Facts
The Dispute
FDC Limited, incorporated in 1940, manufactures and markets a hydration drink branded “Enerzal”. The company has held FSSAI Licence No. 10014022002634 since 28 January 2017, with the most recent renewal on 28 January 2026. Since 2018 the front-of-pack label has displayed the descriptor “Energy and Electrolyte Drink”. On 26 May 2026 the Food Safety and Standards Authority of India (FSSAI) issued a notice directing the petitioner to cease using the words “electrolyte”, “electrolyte drink” or any similar term and to refrain from relying on the Food Category System under Appendix A of the 2011 Regulations.
Key Facts
- 28-01-2017: Initial FSSAI licence granted.
- 2018: Descriptor “Energy and Electrolyte Drink” first used on label.
- 28-01-2026: Latest licence renewal; no objection to descriptor.
- 04-05-2026 & 05-05-2026: Emails sent to all Food Business Operators informing of a meeting on 07-05-2026.
- 07-05-2026: Consultative meeting held; petitioner did not attend.
- 26-05-2026: Impugned notice issued (No. RCD-15001/12/2022-Regulatory-FSSAI, 1/38389/2026).
- 29-05-2026, 03-06-2026, 05-06-2026, 08-06-2026: Petitioner’s representations submitted.
- 02-06-2026: Search and seizure at Karodi and Waluj, Maharashtra; stock valued at ₹36,00,172.
- 03-06-2026: Seizure at Sonegaon MIDC, Nagpur; stock valued at ₹55,67,779.68.
- 17-06-2026: Seizure at stockist in Chhatrapati Sambhajinagar; stock valued at ₹20,78,676.
- 08-06-2026: Petitioner submitted revised label and stock statement.
- Total seized stock value: Approximately ₹1.12 crore.
Procedural History
- 12-08-2026: Petition filed (CM APPL. 40264/2026) seeking interim relief and stay of the impugned notice.
- 13-08-2026: Judgment reserved.
- 25-08-2026: Judgment pronounced; eight-month stay granted.
Parties' Positions
- Petitioner: Argues that the descriptor accurately reflects product composition, had been approved in every licence renewal, and that the regulator failed to issue an improvement notice under Section 32 before seizing stock, thereby violating natural justice.
- Respondents: contend that the notice was issued under Section 18(1)(a) of the FSS Act after a uniform consultative process, that the petitioner was informed of the meeting, and that no specific improvement notice is required for enforcement.
Relief Sought
- Quash and set aside the impugned notice dated 26 May 2026.
- In the alternative, grant eight months to exhaust existing stock and relabel.
- Restrain any further seizure or destruction of Enerzal products.
- Direct release of seized stock.
- Issue mandamus directing state food safety authorities to de-seal the products.
