The Delhi High Court has set aside the food safety regulator’s June 30 order directing Red Bull to drop the term “energy drink” from its labelling, ruling that the company was denied a hearing before the directive was issued.

The court held that the Food Safety and Standards Authority of India could not pass such an order without giving Red Bull an opportunity to be heard. FSSAI remains free to take a fresh decision after following due process.

The ruling is a relief for the beverage maker, which had challenged the directive as arbitrary and commercially damaging. Red Bull argued its labelling complied with existing regulations and that the abrupt order was passed without proper procedure.

The judgment reiterates a basic principle of administrative law: regulators must follow natural justice before issuing directions that affect a business. FSSAI has not yet said whether it will re-examine the matter.

FSSAI’s labelling regime for caffeinated beverages has been a recurring source of friction with manufacturers, with several disputes over permissible claims and warnings reaching the courts. The latest ruling is expected to be cited in similar challenges where companies argue regulators acted without hearing them first.