The Bombay high court has ruled for Nestle India’s Maggi noodles today, quipping: “Even though it’s a 2-minute noodles, it took us a lot of time.”
The conditional relief came following a petition filed by Nestle challenging the regulatory order of June 5 for the withdrawal and recall of nine variants of "Maggi Instant Noodles" and "Maggi Oats Masala Noodles with Tastemaker".
A division bench of Justice VM. Kanade and Justice BP. Colabawalla, while ruling that the principles of natural justice were not followed, also directed fresh tests to be conducted on all major Maggi samples by three separate laboratories within the next six weeks, before it can return to the markets.
"We have examined the evidence in great detail. Since the petitioner Nestle has already agreed not to make and sell Maggi until the food authorities are satisfied, we see no reason to allow any relief to food authorities," Justice Kanade said.
The court directed that five samples of each Maggi noodles variant sent private labs in Punjab, Jaipur and Hyderabad which are recognized by the National Accreditation Board for Testing & Calibration Laboratories.
These samples would be taken from the 750-odd preserved by Nestle after the ban, while a large stock of its products was destroyed by the company after the ban was implemented.
The court specified that only if the lead content was found to be within permissible limits could the company resume its manufacture and sale.
Reuters reported: "Lawyers acting for the food safety regulator said they would now appeal to the Supreme Court within six weeks."
Nestle was represented by Shardul Amarchand Mangaldas Mumbai partner Ameya Gokhale.
The Government yesterday filed a Rs 640 cr claim under Consumer Protection Act against Nestle for false labelling and misleading advertising.
Immediately after the judgement, the stocks of Nestle India surged to the day's high of Rs 6,545, and eventually closed at Rs 6,356.70, with a gain of Rs 172 or 2.78 percent.
The Food Safety and Standards Authority of India (FSSAI), the industry watchdog, had said in its order that tests conducted on a batch of Maggi were found to contain more-than-permissible levels of lead and high quantities of mono-sodium glutamate (MSG).
Refusing also to stay its own order observing that manufacturing and fresh testing would take time, the bench said the FSSAI ban was imposed without following the due principles of natural justice. It also said the tests were conducted in unauthorised labs.
The court further said that the company itself had stated it would not manufacture and sell Maggi till it secured a clean chit from labs accredited with the food safety regulator.
Nestle was also directed to provide five samples from each Maggi batch for testing by the three labs.
Welcoming the judgement, Nestle India said said in a statement that it would comply with the order for conducting fresh tests on samples and expressed its commitment to working with FSSAI, the Maharashtra FDA and other stakeholders.
The significant ruling came a day after Indian authorities announced that they will seek Rs 640 crore in damages from Nestle India for indulging in what they alleged was "unfair trade practices" and mis-statements pertaining to the popular noodles brands.
The National Consumer Disputes Redressal Commission (NCDRC) is set to hear the case on Friday.
However, the company said recently that more than 2,700 samples of Maggi noodles have already been tested by laboratories in India and abroad in recent months and all have concluded that the lead content was far below permissible limits.
The company also said that five samples tested by the government-accredited referral food laboratory, Central Food Technological Research Institute, Mysuru, on samples sent by the Food and Drug Administration (FDA) of Goa, had also found similar results.
"Maggi noodles made in India have been tested and found to be safe for consumption by the authorities of several countries across the world."
Among the four divisions of Nestle India, the category of "prepared dishes and cooking aids", which broadly translate into Maggi, accounted for 31.5 percent of sales in 2014, as per a presentation by the company to analysts.
The Maggi unit also saw a 1.8 percent increase in volumes in 2014 over the previous year and 8.1 percent rise in value at Rs 21.4 billion
Of the remaining divisions, the category of "milk products and nutrition" had the largest share of 47.1 percent, followed by 12.2 percent for "chocolates and confectionery" and 9.2 percent for "beverages".
The court held that Food Safety and Standards Authority of India (FSSAI) had acted in an “arbitrary” manner when it banned the Maggi noodles. The regulator will now have to justify its ban by conducting fresh tests, failing which Nestle could return Maggi to shelves.
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looks like I need to move two floors up.
This MAGGI---episode in India would not happen if the alleged company was transparent in label declaration. For the reason best known to them, they exposed themselves to the whole world as an erring/defiant company through FSSAI,New Delhi when they wrote “No added MSG” which is in utter violation of the laws of the land of the Republic of India in the matters of food .
By doing this kind of unbecoming act , the erring /alleged company through their acts and deeds furthermore landed in big food safety troubles with the food regulatory authority of the country in question where the Adviser himself was last 3 times Booss(Chairman) of the Codex Alimentarius Commission(Equivalent to Universal Food Law Commission),Rome, Italy.
Any food regulator in the world will get highly suspicious when the food regulator sees that “NO ADDED MSG” in the label when MSG(Mono Sodium Glutamate) itself is a big health issue to upkeep public health and safety of utmost importsance.
As per the laws of the land of the the Republic of India so far as food is concerned, there is no provision to mislead consumer with writing extra word/words like “No added MSG”. This in itself a violation of the laws of the land of the the Republic of India so far as food is concerned.
What evidence the alleged erring company is trying to make as per Indian Evidence Act? Nothing but just keeping themselves away from transparency in label declaration. In fact this act and deeds of the alleged company eventually not only violating India’s laws connected to the processed food in question but coming under the unprecedented continuous surveillance/scanner under FSSAI, New Delhi and then onwards the fall of the rise of 30 years market leader brand starts .
Public Analysts are the court appointed posts in India and for that matter in any country of the world and it is my opinion that the honourable court in india can not disbelief their their own acts and deeds .
Be it a big company, be it a small company --- no small is a small and no big is a big --- in the eyes of laws of the land in terms of food to do business in india and I strongly believe FSSAI,New Delhi was extremely professional in making that very fundamental fact clear to one and all including the manufacturers of Maggi.
Only published laws , rules and regulations are the reference for food manufacturers and the Food regulators are not duty bound to interect with food manufacturers on a regular-basis.
It is very good now that in India, the Govt. can sue a company against their alleged misdeeds and do a damage-claim in terms of damaging the health of the consumers/citizens of the country and I heartily believe that this will remain as a great example that a food company has a social responsibily not only on paper but also in real functioning of the company that every of their product will upkeep the health of the consumers and will not do otherwise.
How can FSSAI,New Delhi can obtain exact representative samples of the then MAGGI,when the alleged MAGGI manufacturers for the reason best known to them,have hurriedly destroyed the MAGGI by burning them in cement plants resulting into another trouble---destruction of evidence utterly violating the destruction of Indian Evidence Act.
Most importantly,here, I will like to say that how the MAGGI manufacturers will see the destruction of evidence ----is a million dollar question in itself ---and probably many more millions of rupees of lost revenues from the once upon a time delightful consumers of MAGGI is yet to be experienced.
The father of the Indian nation Mahatma Gandhi (Bapu) once related customer with business as follows: ----“A customer is the most important
visitor on our premises. He is not dependent on us. We are dependent on him. He
is not an interruption of our work. He is the purpose of it. He is not an
outsider of our business. He is part of it. We are not doing him a favour by
serving him. He is doing us a favour by giving us the opportunity to do so.”
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