Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 16 October 2026

Case Overview

  • Parties: The State of Maharashtra (appellant) vs. M/s Gurunank Diary and Sweets A Proprietary Concern (respondent).
  • Origin: Appeal filed under Special Leave Petition (SLP) No. 33597/2026 against the judgment dated 17 August 2026 passed by the Division Bench of the High Court of Bombay in Writ Petition No. 9905/2026.
  • High Court Decision: The High Court set aside the suspension of the respondent’s food licence, permitted the respondent to resume its dairy business, and directed the State of Maharashtra to compensate the respondent Rs 5,00,000 for loss of revenue caused by the suspension.
  • Supreme Court Consideration: The Supreme Court examined only the issue of the Rs 5,00,000 compensation. It held that the High Court erred in directing payment of compensation, emphasizing that the suspension order was a bona‑fide action under the Food Safety and Standards Act, 2006 and that the direction for compensation contravenes Regulation 2.1.8(5) of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011.

Final Outcome

  • The impugned order is set aside solely with respect to the imposition of the Rs 5,00,000 compensation.
  • The appeal is disposed of in these terms.
  • Any pending applications, if any, are also disposed of.

Topics: Food Safety Regulation, Compensation Order, Supreme Court Judgment