Gurunank Dairy & Sweets cleared to resume business after court overturns suspension

The Bombay High Court has granted relief to Gurunank Dairy & Sweets, a Pune confectionery outlet, permitting it to restart its retail trade after a six‑week licence suspension was set aside.

Acting Chief Justice Ravindra Ghugre and Justice Gautam Akhand reversed the FDA’s June 12 order, which had been imposed following a food‑poisoning incident on June 11. The shop had subsequently secured a 98 percent compliance score in a re‑inspection conducted on July 13, yet the suspension lingered.

The petitioner argued that the prolonged shutdown resulted in a loss of roughly Rs 8.5 lakh, based on an average daily turnover of Rs 25,000. The High Court accepted this claim and ordered the FDA to pay Rs 5 lakh as compensation within thirty days, depositing the sum with the court for the merchant’s withdrawal.

In its reasoning, the bench warned that the FDA’s “arbitrary” stance, keeping the licence suspended despite near‑full compliance, was unjustifiable. The judges emphasized that regulatory intent may be laudable, but the execution must not impose undue hardship on lawful businesses.

The decision also referenced a precedent (Pind Punjab case) where a suspension was deemed automatically invalid once a 100 percent compliance was verified, reinforcing the principle that licence revocations must be proportionate to the actual risk.

With the court’s order, Gurunank Dairy & Sweets can now serve its customers again, while the FDA is reminded to align its enforcement actions with the factual compliance status of food establishments.