Facts of the Case

A batch of writ petitions was filed before the Telangana High Court by various traders, wholesalers and retailers engaged in the lawful sale of tobacco products. The petitioners challenged Notification No. 501/FSS-I/2022 dated 07.01.2022 issued by the Commissioner of Food Safety, Telangana, contending that the notification prohibiting the sale of specified tobacco products was illegal, arbitrary, unconstitutional and beyond the powers conferred under the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003. The petitioners further submitted that despite an interim stay granted by the Supreme Court against the notification, local authorities continued to interfere with their lawful business activities.

Issues Involved

  1. Whether the Food Safety Notification dated 07.01.2022 could continue to be enforced despite the interim stay granted by the Supreme Court.
  2. Whether the authorities could interfere with the lawful business activities of traders dealing in tobacco products while the Supreme Court's stay remained operative.
  3. Whether the High Court should grant further relief when the matter was already pending before the Supreme Court.

Petitioners' Arguments

  • The petitioners contended that the impugned notification was contrary to the provisions of the Cigarettes and Other Tobacco Products Act, 2003.
  • It was argued that the notification violated Articles 14, 19 and 21 of the Constitution of India.
  • The petitioners submitted that the Supreme Court had already stayed the operation of the notification dated 07.01.2022.
  • Despite the Supreme Court's interim order, police and food safety authorities continued to interfere with their lawful trade and business.
  • The petitioners requested the Court to protect their business activities and restrain the authorities from acting contrary to the Supreme Court's order.

Respondents' Arguments

  • The State authorities and other respondents defended the actions taken pursuant to the Food Safety Notification.
  • The respondents appeared through the respective Government Pleaders and Standing Counsel.
  • The matter was contested while taking note of the pending proceedings before the Supreme Court concerning the validity of the notification.

Court Order / Findings

The Telangana High Court observed that an earlier notification had already been challenged before the Court and the matter was pending before the Supreme Court in Special Leave Petition proceedings.

The Court noted that during the pendency of the appeal before the Supreme Court, the fresh Notification No. 501/FSS-I/2022 dated 07.01.2022 had been issued and that the Supreme Court, by order dated 31.03.2022, had stayed the operation of the said notification.

Since the issue was already pending before the Supreme Court and the interim order of stay was in force, the High Court held that it would not be appropriate to adjudicate the controversy independently. The Court emphasized that the order of the Supreme Court was binding upon all courts and authorities.

Accordingly, the High Court directed all the respondents to strictly comply with the Supreme Court's interim order in both letter and spirit.

The Court further clarified that if any petitioner believed that the Supreme Court's stay order had been violated or breached, the petitioner would be at liberty to take appropriate legal steps in accordance with law.

The batch of writ petitions was accordingly disposed of without costs.

Important Clarification

  • Authorities are bound to implement and comply with the Supreme Court's interim stay order.
  • The High Court declined to examine the merits of the notification while the matter remained pending before the Supreme Court.
  • Any alleged violation of the Supreme Court's stay order may be addressed through appropriate legal proceedings before the competent forum.
  • The High Court's order reinforces that subordinate authorities cannot act contrary to an operative order of the Supreme Court.

Sections 

  • Article 226 of the Constitution of India
  • Articles 14, 19 and 21 of the Constitution of India
  • Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA, 2003)
  • Food Safety and Standards Act, 2006
  • Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011 (as referred in the proceedings)

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785325714_2270compressed.pdf

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