Delhi HC asks Centre, FSSAI to respond to plea prohibiting sale of Fortune Soya refined oil
The Delhi High Court has sought response of Centre and FSSAI on a plea challenging show cause notice prohibiting manufacture and sale of 'Fortune Soya Health Refined Soyabean Oil' for alleged misleading label declarations and claims.
Petitioner 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, 'Fortune Soya Health Refined Soyabean Oil'.
The respondent authorities opposed the maintainability of the petition on the ground of territorial jurisdiction and submitted that no part of the cause of action arose within the territorial jurisdiction of the Delhi High Court as the company was based in Gujarat and the product was manufactured and marketed from outside Delhi.
However, Justice Swarana Kanta Sharma held that the petition cannot be held to be lacking in territorial jurisdiction and the foundational actions which are directly impugned by the petitioner were taken by FSSAI in Delhi and form the very basis of the reliefs sought in the petition.
"Both respondent nos. 3 and 4 (FSSAI) are authorities situated within the territorial jurisdiction of this court. Thus, insofar as the principal reliefs sought in the petition are concerned, the persons and authorities against whom the writs are sought are amenable to the jurisdiction of this court," the high court said in its order on Monday.
The court asked the authorities to file their responses within four weeks and listed the matter for further hearing on November 5.
According to the plea, on July 17, FSSAI issued a show cause notice to the petitioner alleging contravention of the Food Safety and Standards (Advertising and Claims) Regulations, 2018, and the Food Safety and Standards (Labelling and Display) Regulations, 2020 and calling upon it to clarify within seven days as to why action should not be initiated under the Food Safety and Standards Act.
On the same day, FSSAI issued a letter to the 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 petitioner said the letter effectively treated 'Fortune Soya Health Refined Soyabean Oil' as a "non-compliant product" and exposed it and its distributors, stockists, wholesalers and retailers across India to enforcement action.
It said that in August, the petitioner received communications from some of its distributors that food safety officers visited their premises and directed stoppage of sale of the product, following which retailers declined fresh orders and sought return of existing stock.
