Nestlé challenges apex consumer panel jurisdiction

The country’s apex consumer grievances forum, hearing a class action suit against Nestlé India, put arguments pertaining to the case on hold after the food major on Thursday challenged its jurisdiction.

The National Consumer Disputes Redressal Commission (NCDRC) will now hear the matter on October 15 but the issue to be first resolved is whether the ~640-crore suit will stand. Nestlé counsel Iqbal Chagla raised doubts on NCDRC’s authority to adjudicate the matter.

Chagla’s contention was that the matter pertained to food safety and therefore under the Food Safety & Standards Act, 2006. A consumer forum could only step in if there was loss of life or injury to the consumer on account of a contaminated product. Since the issue of lead contamination in Nestlé’s Maggi noodles brand, the original trigger, was not proven, NCDRC had no role.

The ~640-crore suit filed by the Union government against Nestlé India is the first one in which the former chose to act on its own, taking cognizance of the June 5 ban and recall of Maggi.

Nestlé was given partial relief in the recall and ban of Maggi by the Bombay High Court on August 13, allowing it to resume production after a retest at three accredited laboratories. Findings from this retest are yet to be released.

In the interim, attention has shifted to NCDRC. On September 30, it had decided to hear the issue of alleged improper sampling and testing methodology undertaken by various state food regulators. Legal experts had viewed this as a victory for Nestlé, since it had managed to shift attention once again to the testing methodology and alleged procedural lapses.