Nestlé in soup over Maggi as SC revives class-action suit
NEWDELHI: The Supreme Court on Thursday revived a three-yearold class action suit, filed by the centre against Nestle India seeking damages of ₹640 crore at the National Consumer Disputes Redressal Commission (NCDRC).
In its complaint before the commission, the government has accused Nestle of unfair trade practices, false labelling and misleading advertisements.
The top court had on December 16, 2015 put on hold the NCDRC proceedings after Nestle challenged the commission’s order directing a laboratory in Chennai to conduct tests on Maggi noodles. It had then directed that the same samples be sent to the Central Food Technological Research Institute (CFTRI), Mysuru, and the test report be placed before the court. The report received in April 2016 purportedly said the lead content in the sample was well within the permissible limit.
A bench led by Justice DY Chandrachud, while letting NCDRC to go ahead with the proceedings, however, said the commission shall evaluate the CFTRI report. No fresh tests would be ordered, the court clarified. Both parties would reserve their rights and contentions to argue before the NCDRC.
The order was issued after the centre’s counsel, additional solicitor general Vikramjit Banerjee, said that in the wake of the CFTRI report the matter should be sent back to the NCDRC for a final adjudication on the suit. Citing procedures, he argued that the centre should be allowed to make its submissions on the report.
However, Nestle initially opposed the suggestion and requested the court to dispose the matter as it was seized of another petition arising out of the Bombay high court order that quashed centre’s ban order against Maggi. The high court’s direction has been challenged by the centre in the apex court.
Senior advocate Abhishek Manu Singhvi said the CFTRI report justified Nestle’s stand. Lead content, he said, was under permissible limits. To this Justice Chandrachud said in a lighter vein: “Why should we be eating noodles with lead in it?”
Singhvi, however, submitted that the content was within limits prescribed by the government. With regard to MSG (monosodium glutamate) Singhvi said, the lab ruled there was no system to determine whether the glutamic acid is added or not. He told the court that as a policy decision, Nestle has dropped the label saying it contains no MSG content.