The Delhi High Court on Monday rejected a plea filed by the makers of Vimal Elaichi to quash show-cause notices issued by the Maharashtra Food and Drugs Administration (FDA) to their brand ambassadors Shah Rukh Khan, Ajay Devgn and Tiger Shroff.
Justice Swarana Kanta Sharma said the Delhi High Court does not have the territorial jurisdiction to deal with the case and PG Agro, the company that makes Vimal Elaichi.
The Court said that the central controversy concerns the legality and correctness of an action taken by the FDA Mumbai in relation to alleged activities in Maharashtra and, therefore, courts in Maharashtra are a more appropriate and convenient forum for the company to raise its grievances.
"The factum of petitioner operating its business from Delhi or engaging brand ambassadors from Delhi, especially when the impugned notice has not been issued to the petitioner herein, cannot by themselves confer territorial jurisdiction upon this Court, in light of the judicial precedents of the Hon'ble Supreme Court as well as this Court," the Court observed.
It added that it was not expressing any opinion on the merits of the case.
The dispute arose from regulatory notices issued by the Maharashtra FDA alleging that advertisements for "Vimal Elaichi" amount to surrogate promotion of "Vimal Pan Masala", a chewable product banned within Maharashtra.
The state regulator had directed the actors featured in Vimal Elaichi ads to provide documentation demonstrating that Vimal Elaichi is a product different from banned pan masala products. The FDA also called for a halt on the promotional campaign and for the withdrawal of related materials from digital platforms.
Senior Advocates Dayan Krishnan and Mohit Mathur had appeared for the petitioner-company and argued that the FDA's notice dated August 11 was sent only to the actors and not to the company itself, despite the petitioner being the one to suffer irreparable harm.
The company argued that the Maharashtra FDA lacked jurisdiction to issue directions to halt the advertisement.
In its petition, the company also stated that surrogate advertisement allegations were baseless since Vimal pan masala has not been manufactured or sold in Maharashtra since 2001, and pan masala containing tobacco has been barred by the Supreme Court nationwide since 2013.
The Court was also told that the Central Consumer Protection Authority (CCPA) was already investigating similar allegations and had issued no direction against the campaign.
Advocate Rukhmini Bobde appeared for the Central government and the CCPA and argued that the petition should have been filed before the Bombay High Court.
"The government of Maharashtra, which has passed the show-cause notice, is not here to defend its show-cause notice," she said.
Bobde added that while CCPA was conducting its own proceedings, it had no objection to Maharashtra FDA's notice.
PG Agro's petition was filed through advocate Dushyant K Mahant of S Jaina and Associates.
[Read Judgment]