Madurai: Granting interim stay on an order suspending the licence of AR Dairy Food Private Limited, Madras high court on Friday said that the order will operate only for products relating to ghee and skimmed milk powder and will not operate with respect to other products being manufactured by the company.
The court was hearing a petition filed by AR Dairy Food Private Limited based in Dindigul district. The petition said that the company was issued licence to manufacture dairy products, proprietary food, general manufacturing, trade and food products. Originally, the licence was issued and subsequently modified on Feb 22, 2024. It was valid till June 1, 2029. The company is procuring milk from 13,000 suppliers every day. It employs around 400 employees.
The cause of action for the petition was that an allegation was made against the petitioner on the possible presence of foreign fat other than milk fat in the ghee supplied to Tirumala Tirupati Devasthanam (TTD). It was commenced by a proceedings of the director (Institute of Preventive Medicine), Andhra Pradesh.
Show cause notices were issued and replies were received. Subsequently, the order was passed by the authorities and the licence of the petitioner was suspended in full. Challenging the order, the petitioner had filed the present petition. The petitioner has confined stay petition with respect to all other business except with respect to the product ghee.
Justice V Lakshminarayanan observed that considering the fact that the petitioner was involved in the business for years on end and the adverse notice was issued on account of a single transaction, the court was not inclined to close down the industry as a whole.
The affidavit of the petitioner pleaded that apart from the right of the petitioner under Article 19(1)(g) of the Constitution, there are other milk suppliers and employees of the petitioner, who would be turned out of their employment, in case industry was to be closed out. At the same time, the interest of the public of not being fed with adulterated food should be considered. This interest of the industry and public can certainly be balanced, the judge observed.
The judge observed that the petitioner has sought for an order of stay with respect to other products other than ghee. Hence, there shall be a limited order of interim stay of the proceedings.
The judge directed the Food Safety and Standards Authority of India and the Central Licensing Authority under FSSAI, Act to file their counter affidavit. The matter was posted for final disposal on March 4. The judge also dismissed another petition filed by the petitioner with regard to skimmed milk powder.
