C. Royal And Company vs. The State Of Telangana And 5 Others

Held

The Court held that the impugned Notification No. 505/FSS-1/2021 is not illegal, arbitrary, unconstitutional, or ultra vires the COTPA Act, 2003. The Court reasoned that tobacco products, as enumerated in Section 3(i) of the FSSA, fall within the definition of 'food'. Consequently, Section 89 of the FSSA, which grants overriding effect to the provisions of the FSSA over all other food-related laws, makes the FSSA the governing legislation in this domain. The Court found no conflict between the legislative objects of the FSSA and the COTPA Act, noting that the PFA Act was for preventing adulteration, while the COTPA Act aimed to prohibit advertisement and regulate trade in tobacco products. The Court referenced a Division Bench judgment of the Bombay High Court that dealt with similar issues. It concluded that the notification, aimed at saving human lives and imposing restrictions in larger public interest due to the severe health consequences of gutka and tobacco products, constitutes a reasonable restriction and does not offend the right to carry on trade. Therefore, the Court found no reason to interfere with the impugned notification.

Facts

The petitioners, including Sri Kamadhenu Traders and Damodar Jagannath Malpani, filed writ petitions challenging Notification No. 505/FSS-1/2021, dated January 6, 2021, issued by the Commissioner of Food Safety, Telangana. This notification prohibited the sale, manufacture, storage, and distribution of gutka, pan masala, and other tobacco products containing any of the 439 additives listed in the notification. The petitioners argued that this notification was illegal, arbitrary, unconstitutional, and ultra vires the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA Act). They sought to prevent interference with their trade and business in these products. The State of Telangana and other respondents were arrayed as parties. The judgment also notes an interim order granted on August 31, 2021, which the State sought to vacate.

Key Issues

1. Whether Notification No. 505/FSS-1/2021, issued by the Commissioner of Food Safety, Telangana, is illegal, arbitrary, unconstitutional, and ultra vires the COTPA Act, 2003, in violation of Articles 14, 19, and 21 of the Constitution of India? Petitioner's arguments: The petitioners contended that the impugned notification was beyond the scope of the Food Safety and Standards Act, 2006 (FSSA), and that the FSSA was not intended to regulate tobacco products. They argued that the COTPA Act, 2003, specifically deals with tobacco products, and any regulation concerning them should fall under that Act. They asserted that the notification violated their fundamental right to carry on trade and business guaranteed under Article 19(1)(g) of the Constitution and was not a reasonable restriction. They also raised concerns about the violation of principles of natural justice. Revenue/State's arguments: The respondents argued that tobacco products, as defined under the FSSA, fall within the definition of 'food' and that the FSSA, particularly Section 89, has an overriding effect on other food-related laws. They contended that the notification was issued in larger public interest to protect human lives from the harmful effects of gutka and other tobacco products, which cause diseases like cancer, and that the restrictions imposed were reasonable and constitutional. They relied on the overriding effect of the FSSA and the public health concerns.