Bombay High Court asks Thane restaurant to approach Food Safety Commissioner over licence suspension

The Bombay High Court on Wednesday (September 16, 2026) directed Thane-based Udupi Swaad Restaurant to first approach the Commissioner of Food Safety against the suspension of its food licence over allegations that it served non-dairy analogue paneer as regular paneer.

A Bench of Chief Justice Mahesh Chandra Tripathi and Justice Advait Sethna observed that where a statutory appellate remedy was available, the restaurant should first avail it before approaching the High Court.

The restaurant had challenged action taken by the Maharashtra Food and Drug Administration (FDA), contending that its licence had been suspended without first issuing an improvement notice under the Food Safety and Standards Act and without a reasoned suspension order.

The case stems from an FDA inspection of the Udupi Swaad Restaurant in Thane. Food safety officers collected a sample of loose paneer for laboratory analysis.

According to the FDA, the government laboratory subsequently found that the paneer contained foreign fat instead of dairy-based ingredients and classified the sample as “unsafe” under the Food Safety and Standards Act, 2006.

The FDA said its investigation further found that the restaurant had purchased “cheese analogue” in the name of paneer and served it in paneer-based dishes without disclosing the substitution to customers. The Assistant Commissioner and Designated Officer, Thane, subsequently ordered the immediate suspension of the establishment’s food licence.

At an earlier hearing on August 21, a Bench of then Acting Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad issued notice to the State and FDA and directed them to file their reply. The publicly available order does not contain findings on the merits of the alleged food-safety violation.

During that hearing, however, the Bench orally criticised the restaurant over the allegation that customers had been served analogue paneer without being informed and declined to grant immediate relief.

At the September 16 hearing, counsel for the FDA submitted that the restaurant had the option of appealing the suspension before the FDA Commissioner. The bench directed the restaurant to pursue that remedy before seeking intervention from the High Court.