Delhi HC Quashes FSSAI Order Against Red Bull Over ‘Energy Drink’ Label

The Delhi High Court on Tuesday set aside a Food Safety and Standards Authority of India (FSSAI) order directing Red Bull to stop using the term “energy drink” on its beverage products, holding that the company was not given an opportunity to respond.

Justice Amit Mahajan allowed Red Bull’s petition challenging the June 30 FSSAI order, observing that the principles of natural justice had been violated as the company was not given an opportunity to file a reply or explain its position before the decision was taken.

“The petition is allowed. The impugned order is set aside. The respondent is at liberty to pass a fresh order after according a hearing to the petitioner,” the court said while dictating its order.

The court noted that it was undisputed that FSSAI had directed Red Bull not to use the term “energy drink” without first giving the company an opportunity to present its case.

FSSAI told the court that it had not issued a separate show-cause notice, arguing that its June 30 communication itself constituted a notice. It also clarified that its concern was limited to the use of the words “energy drink” and was not related to the beverage product itself.

The high court, however, said FSSAI was free to take a fresh decision after following due process. It specifically directed that the authority may issue a show-cause notice to Red Bull and provide the company an opportunity of hearing before deciding the matter afresh.

The court’s ruling was therefore confined to the procedural aspect of FSSAI’s decision and did not determine whether Red Bull is substantively entitled to use the “energy drink” descriptor.

Red Bull submitted that it had been using the term for its beverage products in India since 2002 and that FSSAI had previously recognised its use for the relevant category of caffeinated beverages.