The Delhi High Court has granted relief to Red Bull India by setting aside a Food Safety and Standards Authority of India (FSSAI) order that directed the company to discontinue the use of the term "energy drink" on its beverages.
Justice Amit Mahajan ruled that the impugned order could not stand because it was issued without affording Red Bull an opportunity to present its case. The Court observed that principles of natural justice require regulatory authorities to provide notice and a hearing before taking actions that may adversely affect a business.
The dispute arose after FSSAI issued a directive requiring Red Bull and several other beverage manufacturers to remove the descriptor "energy" from product labels. The regulator's position was reportedly based on the absence of a recognized regulatory category or standard for "energy drinks" under existing food regulations.
Red Bull challenged the June 2026 order before the Delhi High Court, arguing that it had marketed its products in India using the "energy drink" descriptor since 2002 and that the regulator's action represented a sudden departure from its earlier position. The company further contended that no show-cause notice was issued and no opportunity of hearing was granted before the order was passed.
During the proceedings, the Court questioned whether FSSAI had followed due process and emphasized the importance of procedural fairness. Finding merit in the company's objections regarding the lack of notice, the Court quashed the order on the limited ground of violation of natural justice.
However, the Court did not prevent FSSAI from examining the issue afresh. The regulator has been granted liberty to issue a fresh show-cause notice, hear the company, and pass a reasoned order in accordance with law.
The ruling is significant for the food and beverage industry as it highlights the necessity for regulators to adhere to procedural safeguards while enforcing labeling and compliance requirements. The decision may also influence future disputes concerning product descriptors, food labeling standards, and regulatory oversight in India's rapidly growing beverage sector.