The Bombay High Court has agreed to hear petitions filed by United Spirits Limited and Mohan Meakin Limited, manufacturers of McDowell's No. 1 Celebration Matured Rum and Old Monk, respectively, against the Food Safety and Standards Authority of India's (FSSAI) order prohibiting the manufacture and sale of their products. This development highlights the limits of the FSSAI's powers to prohibit the sale of food products. The immediate effect is on the manufacturers of these products, who face a potential loss of sales and revenue.

Full News Breakdown

The dispute was triggered by the FSSAI's inspection of the manufacturers' units, which allegedly found misleading labelling, substandard composition, and unauthorised use of artificial flavouring agents. The core disagreement was over the FSSAI's order to prohibit the manufacture and sale of the products. Key facts include:

• Case Name: M/s United Spirits Limited vs Union of India (Writ Petition 10196 of 2026)

• Court: Bombay High Court

• Bench: Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad

• Date: August 7, 2026

• Statutes Cited: Food Safety and Standards Act (FSS Act)

• Primary Legal Issue: Whether the FSSAI has the power to prohibit the manufacture and sale of food products under Section 36(3)(b) of the FSS Act

• Petitioner Arguments: The FSSAI's order is arbitrary and without basis, as the products conform to the applicable requirements prescribed under the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018

How Does This Affect You?

The court's decision clarifies that the FSSAI's orders must be based on specific statutory provisions. Manufacturers of food products, particularly alcoholic beverages, may wish to review their compliance with the applicable regulations to avoid prohibition orders. This shift creates a compliance obligation for businesses to ensure their products meet the required standards.

For Lawyers & Advocates

Lawyers may find it useful to review the FSSAI's orders carefully to determine if they are based on specific statutory provisions. They may consider challenging such orders if they are arbitrary or without basis. Lawyers may also want to advise clients on the necessary steps to take to avoid prohibition orders, including reviewing compliance with the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018.

For Law Students

The decision provides an opportunity to examine the principle of statutory interpretation, specifically the requirement that regulatory orders be based on specific statutory provisions. The study of administrative law, particularly the limits of regulatory powers, is relevant. Comparing this judgment with other cases, such as State of Maharashtra vs Indian Hotel and Restaurants Association (2019) and GlaxoSmithKline Consumer Healthcare Ltd vs Union of India (2019), highlights the importance of statutory interpretation in regulatory matters.

For Businesses

Businesses may want to consider reviewing their compliance with the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018, to avoid prohibition orders. They may also want to review their labelling and packaging to ensure compliance with the regulations and avoid misleading labelling. The potential implications of non-compliance may affect their operations and revenue.

Key Takeaways

• The FSSAI's powers to prohibit the manufacture and sale of food products are limited to specific statutory provisions.

• The court's decision may influence the approach lawyers take when reviewing the FSSAI's orders.

• The FSSAI must ensure that its orders are based on specific statutory provisions and are not arbitrary or without basis.

• The outcome of the hearing on August 10, 2026, may have implications for the food industry.

• Manufacturers of alcoholic beverages may wish to review their compliance with the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018, before the next FSSAI inspection to avoid prohibition orders.

Source: Old Monk, McDowell Rum Manufacturers Moves Bombay High Court Against FSSAI Order Prohibiting Sale