The Delhi High Court on Friday, 7 August granted interim relief to Dabur India Limited, staying a prohibition order issued by the Food Safety and Standards Authority of India (FSSAI) that had directed the company to immediately halt sales of certain food products carrying '100 per cent' label claims. The stay holds until the next date of hearing, fixed for 24 August.

What the Court Ruled

A single-judge bench of Justice Amit Mahajan passed the interim order after observing that a prohibition of this nature ought not to have been issued without first affording Dabur an opportunity to be heard. The court held that a prima facie case had been made out in the company's favour.

'Considering the arguments made by the senior counsel appearing for the petitioner, this court is of the prima facie view that the impugned prohibitory order of such nature ought not to have been passed without opportunity of hearing. Till the next date of hearing, the impugned order is stayed,' the bench stated.

The court simultaneously issued notice on Dabur's petition and sought responses from the Central government and the FSSAI. The matter had been initially mentioned for urgent listing before a bench headed by Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia, which allowed the case to proceed on an urgent basis.

Dabur's Arguments

Senior counsel for Dabur India contended that the company had been selling the products in question for decades and that the officer who passed the prohibition order did not have the authority to do so in the manner adopted. Counsel further argued that the order violated the principles of natural justice, having been passed without issuing a show-cause notice to the company.

In regulatory filings before the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), Dabur had maintained that its product labels complied with the prevailing legal and regulatory framework and were consistent with long-standing industry practices. The company stated it had never made misleading claims and that the impact of the prohibition order was limited to the specific products flagged by the regulator.

What FSSAI Had Alleged

The FSSAI had directed Dabur to stop selling products carrying claims such as '100 per cent Natural', '100 per cent Pure', '100 per cent Purity Guaranteed', '100 per cent Organic', and '100 per cent Tender Coconut Water', describing these as ambiguous, unverifiable, and likely to mislead consumers in violation of the Food Safety and Standards (Advertising and Claims) Regulations, 2018.

The regulator had also raised objections to the display of the Jaivik Bharat logo on Dabur Himalayan Organic Apple Cider Vinegar and Dabur Organic Honey, alleging the products lacked valid FSSAI organic endorsement under the Food Safety and Standards (Organic Foods) Regulations, 2017. Additionally, the FSSAI had flagged that Dabur Hommade Coconut Milk was marketed with a '100 per cent Purity' claim, which it said was impermissible for compound food products.

The regulator stated that Dabur failed to take satisfactory corrective action despite an earlier improvement notice, and consequently directed the company to stop sales and submit an Action Taken Report within 15 days.

FSSAI's Defence

Central Government Standing Counsel Ashish Dixit, appearing for the FSSAI, defended the regulator's action, submitting that an improvement notice had been issued to Dabur before the prohibition order was passed — a procedural step the regulator argued satisfied natural justice requirements.

What Happens Next

The Delhi High Court will take up the matter again on 24 August. Until then, Dabur's products remain on shelves under the protection of the stay. The case is being closely watched by the fast-moving consumer goods sector, as it raises broader questions about the regulatory threshold for invoking prohibition orders and the procedural safeguards owed to companies before such drastic action is taken.