The Delhi High Court has delivered a significant ruling, allowing Red Bull to continue labelling its products as 'energy drinks' by setting aside an earlier directive from the Food Safety and Standards Authority of India (FSSAI). Justice Amit Mahajan's decision, issued on September 29, 2026, primarily hinged on the violation of natural justice principles, not the merits of the labelling dispute itself.
FSSAI Order Challenged Over Procedural Flaws
The controversy began when the FSSAI issued an order on June 30, 2026, instructing Red Bull to cease using the 'energy drink' designation. Red Bull promptly challenged this directive, arguing that the order was issued without providing the company an adequate opportunity to present its case or explain its position.
The High Court concurred with Red Bull's argument. Justice Mahajan noted that the FSSAI's order was passed without giving Red Bull a prior hearing or issuing a formal show-cause notice. The FSSAI had contended that its June 30 letter itself served as a notice, but the court found this insufficient to meet the requirements of natural justice.
“The petition is allowed. The impugned order is set aside. The respondent is at liberty to pass a fresh order after according a hearing to the petitioner,” the court stated in its judgment.
Implications of the Ruling
This ruling means that, for the time being, Red Bull can continue to use the 'energy drink' label on its products in India. It is crucial to note that the court did not make a definitive judgment on the broader question of whether the term 'energy drink' aligns with FSSAI's food labelling regulations.
Instead, the decision solely addresses the procedural irregularity in how the FSSAI's order was issued. The FSSAI retains the liberty to initiate fresh proceedings against Red Bull, provided it follows due process, including issuing a proper show-cause notice and affording the company a full opportunity to be heard.
Red Bull's Long-Standing Usage
Red Bull informed the court that it has been using the term 'energy drink' in India since 2002 and that the FSSAI had previously acknowledged this description for caffeinated beverages. The FSSAI clarified that its concern was strictly about the use of the specific words 'energy drink' and not the product itself.
The outcome underscores the importance of procedural fairness in regulatory actions, ensuring that all parties have a chance to be heard before decisions impacting their operations are finalized.