Spices Board vs Saras Spices Private Limited on 11 June, 2025

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Kerala High Court

Spices Board vs Saras Spices Private Limited on 11 June, 2025

WA NO.534/2025                 1



                                                            2025:KER:39907


          IN THE HIGH COURT OF KERALA AT ERNAKULAM

                               PRESENT

  THE HONOURABLE MR.JUSTICE SUSHRUT ARVIND DHARMADHIKARI
                                   &
          THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M.
WEDNESDAY, THE 11TH DAY OF JUNE 2025 / 21ST JYAISHTA, 1947

                        WA NO. 534 OF 2025

        ARISING OUT OF THE JUDGMENT DATED 08.01.2025 IN WP(C)
            NO.41366 OF 2022 OF HIGH COURT OF KERALA
APPELLANT/1ST RESPONDENT:

            SPICES BOARD
            SUGANDHA BHAVAN, NH BY PASS, PALARIVATTOM P.O.,
            KOCHI -682025, REPRESENTED BY ITS CHAIRMAN
            PIN 682 025


            BY ADV ANTONY MUKKATH, SC, SPICES BOARD, INDIA


RESPONDENTS/PETITIONER & 2ND RESPONDENT:

    1       SARAS SPICES PRIVATE LIMITED
            AGED 45 YEARS
            1ST FLOOR, ANNA ALUMINUM COMPANY PRIVATE LIMITED,
            KIZHAKKAMBALAM P.O., ALUVA 685562, REPRESENTED BY
            ITS MANAGER H.R. PRAVEEN RAJ, PIN 685562

    2       THE COMMISSIONER OF FOOD SAFETY
            THYCAUD P.O., THIRUVANTHAPURAM- 695014.
            PIN 695 014

            BY ADV.PREMJITH NAGENDRAN, R1
            SUNIL KUMAR KURIAKOSE, R2
     THIS    WRIT    APPEAL   HAVING     COME   UP    FOR    ADMISSION   ON
11.06.2025,    THE    COURT   ON   THE    SAME       DAY    DELIVERED    THE
FOLLOWING:
 WA NO.534/2025                   2



                                                            2025:KER:39907



                              JUDGMENT

Dated this the 11th day of June, 2025

Syam Kumar V.M., J.

This Writ Appeal is filed challenging the judgment of the

learned Single Judge dated 08.01.2025 in W.P.(C) No.41366 of

2022. Appellant was the 1st respondent in the W.P.(C). Respondents

1 and 2 are the petitioner and the 2nd respondent respectively in the

W.P.(C). Parties are hereinafter referred to as per their status in the

W.P.(C).

2. The W.P.(C) was filed by the petitioner inter alia seeking to

quash Ext.P6 circular issued by the 1 st respondent to the extent it

barred the re-testing of samples readied for exports. A prayer to

quash Exts.P3 and P5 letters issued by the 1 st respondent to the

petitioner to the extent it directed the petitioner to destroy the goods

as well as a direction to the 1st respondent to draw and retest the

sample of the goods that the petitioner proposed to export to UAE

was also made in the W.P.(C).

3. The learned Single Judge had vide the impugned judgment
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allowed the W.P.(C) and had quashed Ext.P6 circular to the extent it

imposed a blanket ban on retesting inter alia holding that it suffers

from the vice of arbitrariness. The learned Single Judge had also

quashed Ext.P3 and Ext.P5 letters to the extent it directed the

petitioner to destroy the relevant goods, and also issued a direction

to the 1st respondent to draw and retest the sample of the subject

product of the petitioner for the presence of ‘ Sudan Dye’ either in

their own laboratory or in such other accredited laboratory. The 1 st

respondent was also directed to pass appropriate orders based on

such retest within six weeks from the date of receipt of a certified

copy of the judgment. The 1st respondent has filed this Writ Appeal

aggrieved by the said judgment of the learned Single Judge.

4. The bare facts necessary for the disposal of this Writ

Appeal are as follows. Petitioner is a manufacturer/seller/ exporter of

spices and curry powders. The petitioner is registered with the 1 st

respondent as an exporter and is duty bound to meet the quality

specifications of the country to which the goods are to be exported

as well as the standards prescribed by the Food Safety and

Standards Act, 2006. The test for ensuring compliance with the
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standards is carried out by the 1st respondent. When the relevant

consignment of the petitioner was ready, the same was offered for

sampling to the 1st respondent. The report was returned alleging that

the consignment had been contaminated by ‘Sudan Dye’ which is a

colouring agent used by farmers to give red colour to unripe chillies

which is a prohibited item. The 1 st respondent called upon the

petitioner vide Ext.P3 letter stating that the concerned goods are to

be destroyed under intimation to the 1 st respondent and under the

supervision of its officials. The petitioner upon receipt of Ext.P3

requested that a second test viz., a retest of the goods be carried

out so far as the petitioner was positive that they had made

purchases only from trusted sources and the presence of finding

‘Sudan Dye’ was too remote. In response to the said request, the 1 st

respondent issued a letter stating that as per Ext.P6 circular dated

01.01.2014 issued by the 1st respondent, no request for retesting of

samples can be entertained for any reason whatsoever. The

petitioner, in so far as the goods which were directed to be

destroyed was worth more than Rs.30.36 lakhs, had got the samples

drawn and tested specifically for ‘Sudan Dye’ in three other
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laboratories, accredited to the National Accreditation Board for

Testing and Calibration Laboratories (NABL) which were notified

under Section 43 of the Food Safety and Standards Act by the Food

Safety Standards Authority. All the three tests were favourable to the

petitioner and did not detect the presence of ‘Sudan Dye’. The

petitioner then addressed the 1st respondent informing the said fact

and requested that there is a possibility for an error in the laboratory

test conducted by the 1 st respondent and since there exists a

provision under Section 46 (4) for retesting by a referral lab, the

same may be arranged. Since the same was of no avail, the

petitioner had filed the W.P.(C) inter alia challenging Ext.P6 circular

as well as Exts.P3 and P5 letters to the extent they directed the

petitioner to destroy the goods issued by the Board.

5. Heard Sri. Antony Mukkath, Advocate, Standing Counsel

for the 1st respondent (appellant) and Sri.Premjit Nagendran,

Advocate for the petitioner (1 st respondent). Sri.Sunil Kumar

Kuriakose, learned Government Pleader appeared for the 2 nd

respondent.

6. The learned counsel for the 1 st respondent contended that
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the judgment of the learned Single Judge to the extent it directed the

1st respondent to draw and retest the sample of the subject product

of the petitioner for the presence of ‘Sudan Dye’ and to pass orders

based on such retest is vitiated by errors of law and facts apparent

on the face of the records and is liable to be interfered in appeal and

set aside for being illegal and contrary to the established tenets of

law. The reliance placed by the learned Single Judge on the decision

in Shayara Bano v. Union of India [(2017) 9 SCC 1] is contended

to be erroneous in so far as the said decision had no application to

the facts of the case at hand for the reason that Ext.P6 circular is

fair, reasonable, transparent and not discriminatory. It is contented

that Ext.P6 circular is unbiased and equally applicable to all the

exporters and the same promotes healthy competition and equitable

treatment. The finding of the learned Single Judge that Ext.P6

circular does not specify the source of the power for issuing such a

ban is erroneous insofar as the 1 st respondent Spices Board had

issued Ext.P6 circular in accordance with Regulations 5(13) and (16)

of the Regulations of 1989. (Regulation 3 (k) and (n) of the Amended

Regulation 2011). The relevant regulation read with Section 7(1) (vi)
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and (vii) of the Spices Board Act, 1986 is the source of the power for

issuing the circular. It is further contended that the said requirement

is in conformity with the standards prescribed by the European

Union. The learned Single Judge had erred in understanding the

procedure regarding testing as conducted in the 1 st respondent’s

laboratories and the said error had led the learned Single Judge to

hold that there is a provision for retest even in the Food Adulteration

laws and that the circular is to be treated as a subordinate legislation

and the same should satisfy the test of non-arbitrariness. It is

contented by the learned counsel that as elaborated in the counter

affidavit of the 1st respondent, three sets of samples from the chilli

powder and spice mix of the petitioner had been drawn from the

relevant consignments and the sample had been initially tested at

the Spices Board Quality Evaluation Laboratory, Kochi. Upon

detection of the adulteration with the relevant adultering agent, a

retest (Ring test) was conducted at other accredited quality

evaluation laboratories of the 1st respondent Board located at

Mumbai and Kandla respectively by using the record sample

prepared from the homogenized aggregate sample. Adulteration with
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Sudan Dye IV at prohibited levels had been reported in all the three

tests and consequently the consignment was not cleared for export.

In view of the same, the finding of the learned Single Judge that only

one test was conducted in the laboratory under the control of the

respondents without any provision for retest in any other State

accredited laboratories or in the very same laboratory belonging to

the respondent is opposed to facts. The tests had been conducted in

three quality evaluation labs of the spices board located at Kochi,

Mumbai and Kadala and were returned positive for the adulterant at

prohibited levels. Hence the finding of arbitrariness by the learned

Single Judge is without any foundational basis and is liable to be

interfered with. It is further contented that the learned Single Judge

had overlooked the fact that the three test reports produced by the

petitioner could not have been acted upon or accepted by the 1 st

respondent insofar as the said report did not meet the standards

prescribed by the 1st respondent. As per Regulation 5 (15) of

Ext.R1(a) Regulation, tests could have been conducted only in

laboratories of the Board or in laboratories designated by the Board.

From 20.07.2023 onwards, an appeal system has been
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implemented by the 1st respondent and grievance, if any, of the

petitioner could have been redressed by invoking the said

appellate remedy. The said alternate remedy had not been invoked

by the petitioner. Over and above, since the shelf life of chilly is only

2 years and the said time period has already expired from the date

of procurement of chilly for export, the subject consignment could

not now be used for any purpose and there is no possibility of

getting any report thereon. No purpose would be served by retesting

the product which does not have the shelf life. Therefore, the

directions issued by the learned Single Judge is to draw and

retest the sample of the subject product of the petitioner is

unworkable and is liable to be interfered with. For the above

reasons, the learned counsel for the 1 st respondent prayed that the

appeal may be allowed and the judgment of the learned Single

Judge may be set aside.

7. Per contra, the learned counsel appearing for the petitioner,

submitted that neither the Spices Board Act nor the Rules authorize

a decision to ban retesting of samples and that Ext.P6 issued by a

Deputy Director of the 1st respondent Board, does not state under
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which provision the same has been issued. The Food Safety

Standards Act recognizes the fact that any laboratory could make a

mistake and hence provides an appeal against the finding of the

food analyst by providing for an appeal to refer the sample to a

referral laboratory under Section 46(4) of the Food Safety and

Standards Act. Although the said provision leaves it to the discretion

of the designated authority to refer the matter to a referral laboratory,

an appeal preferred is invariably referred to the referral laboratory,

recognizing the fact that no laboratory is infallible nor immune from

human error or contamination. The 1 st respondent cannot be the final

authority for testing of samples and a retest or a re-look at the same

laboratory or any other accredited laboratory in fairness ought to be

the normal law. The petitioner stands to lose the excess of

Rs.30,00,000/- if the cargo is destroyed and it was hence right, fit

and proper that the petitioner be fully satisfied that the destruction of

the goods is inevitable due to the presence of prohibited additives.

Hence the learned Single Judge was right to hold that Ext.P6

circular to the extent stated above is fit to be quashed and that

consequently Exts.P3 and P5 letters calling upon the petitioner to
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destroy the goods are unsustainable. The learned counsel for the

petitioner thus submitted that there is no cause or reason for

interfering with the judgment of the learned Single Judge and that

the Writ Appeal is only to be dismissed.

8. We have heard both sides in detail and have considered

the respective contentions put forth. The limited question to be

considered is whether Ext.P6 circular issued by the Director

(Marketing) of the 1st respondent, to the extent it does not stipulate,

provide for or permit the retesting of the samples once tested at the

laboratory of the 1st respondent is violative of the arbitrariness facet

of Article 14 of the Constitution of India. We note that Ext.P6 circular

states that as regards ‘re-sampling’, once the analytical reports

based on analysis carried out in the Quality Evaluation Labs of the

Board, show positive results for banned substances, any request for

resampling for whatsoever reason will not be entertained. It further

states that if the consignment of spices and spice products intended

for export is detected with Sudan contamination, based on the

analytical report, the same should be destroyed within 15 days in the

presence of the officials of the Spices Board and FSSAI.
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9. We have examined closely the reasoning provided by the

learned Single Judge for quashing Ext.P6 circular. The learned

Single Judge, we note, have considered the matter elaborately and

had taken note of the counter affidavit and the reply affidavit filed by

the parties. The settled proposition that legislation and subordinate

legislation can be challenged on the ground of manifest arbitrariness

and the dictum in Shayara Bano (supra) that if a constitutional

infirmity is found, Article 14 will interdict such infirmity and that a

legislation is manifestly arbitrary, when it is not fair, reasonable,

discriminatory, not transparent, capricious, biased, with favoritism or

nepotism and not in pursuit of promotion of healthy competition and

equitable treatment. The learned Judge had reasoned that a

subordinate legislation can be struck down on the ground that it is

arbitrary and therefore violative of Article 14 of the Constitution.

Reliance was also placed on the dictum laid down in Cellular

Operators Association of India v. TRAI [(2016) 7 SCC 703]

wherein the concept as well as the test for manifest arbitrariness

was reiterated and explained further by the Hon’ble Supreme Court.

The learned Judge relying on the dictum laid down in Indian
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Express Newspaper’s Bombay Pvt. Ltd. v. Union of India,

[(1985) 1 SCC 641] held that subordinate legislation can be

challenged on any of the grounds available for challenge against

plenary legislation and that there is no rational distinction between

two types of legislation when it comes to the ground of

challenge under Article 14. It was thus concluded by the learned

Single Judge that the test of manifest arbitrariness, therefore, as laid

down in the relevant judgments, would apply to invalidate

legislation as well as subordinate legislation under Article 14. The

learned Judge, thus after reminding himself of the legal position,

proceeded to consider Ext.P6 circular, which stipulated that a retest

of samples is barred for any reason whatsoever once it had been

tested and reported in the labs of the 1 st respondent. The learned

Judge concluded that Ext.P6 circular, since it does not specify the

source of power for issuing such a ban on retest, is bad in law

and noted that a provision for retest existed even under the Food

Adulteration laws. Thus treating the Ext.P6 circular as a

subordinate legislation, which should satisfy the test of non-

arbitrariness, the learned Single Judge held that the conclusiveness
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attributed therein to a test conducted in the laboratory under the

control of the respondents without any provision for a retest in any

other state accredited laboratories or in the very same laboratory

belonging to the respondent, is arbitrary. The fact that the said

results which could not be subjected to any retest had huge

economic and civil consequences for the exporters, was taken due

note of by the learned Single Judge. The above proposition, the

learned Single Judge reckoned, was buttressed by the fact that the

petitioner had produced reports from three other accredited

laboratories regarding the same samples which were in his favour.

This had prompted the exporter to seek a retest and the learned

Judge concluded that the circular to the extent it totally prohibits a

retest in any other laboratory was manifestly arbitrary and

unreasonable. We find no reason to interfere with the findings

arrived at by the learned Single Judge.

10. The contention put forth by the learned counsel appearing

for the 1st respondent, Spices Board that since three tests as part of

the ring test had been conducted the learned Single Judge had

erred in concluding that no test was conducted after the first test
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which turned out positive result, cannot be sustained. It is to be

noted that the purported three tests conducted in three different

laboratories are all tests conducted in the labs of the 1 st respondent

itself and not in an independent accredited third party laboratory. It is

relevant to note that Rule 5 (15) of the Spices Board Registration of

Exporters Regulations, 1989 produced as Ext.R1(a) by the 1 st

opposite party reads as follows:

“Every certificate holder shall, on demand,
allow, any officer of the board or agency authorized
in this behalf by the chairman, to draw samples, from
spices processed, packed, stored, warehoused,
container stuffed or transported for export purposes,
For analysis of the same, to verify conformity of
prescribed quality standards, in the laboratories of
the Board or in the laboratories designated by the
Board.”

Thus the relevant Regulation envisages test and analysis to verify

conformity with the prescribed quality standards not only in the

laboratories of the Board, but also in laboratories designated by the

Board. In the light of the said specific provision in the Regulations,

Ext.P6 circular to the extent it states that the analysis carried out in

the Quality Evaluation Labs of the Board are final and a request for

resampling for whatsoever reason will not be entertained, is clearly

arbitrary, unreasonable and unsustainable in law. The contention
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that an appellate procedure has been evolved by the 1 st respondent

Board from 20.07.2023 does not augur to the benefit of the petitioner

insofar as the Exts.P3 and P5 challenged in the Writ Petition are

dated 04.10.2022 and 04.11.2022 respectively, that is, much prior to

the date of commencement of the appellate facility.

11. It is an attribute of fairness and a step towards augmenting

clarity when a circular cites the section, rule, or regulation of the

parent Act or Regulation that gives it the authority to be issued.

Similarly, the content of the circular must be directly connected to

and serve the purpose of the parent legislation/ regulation and

cannot introduce new rules or modify the Act’s intent beyond what is

authorized. The Hon’ble Supreme Court in Kerala State Electricity

Board and others v. Thomas Joseph Alias Thomas M.J. and

others [(2022) SCC OnLine SC 1737] has held as follows:

“The doctrine of ultra vires envisages that a rule
making body must function within the purview of the
rule making authority conferred on it by the parent
Act. As the body making rules or regulations has no
inherent power of its own to make rules, but derives
such power only from the statute, it has to
necessarily function within the purview of the statute.
Delegated legislation should not travel beyond the
purview of the parent Act. If it does, it is ultra vires
and cannot be given any effect. Ultra vires may arise
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in several ways; there may be simple excess of
power over what is conferred by the parent Act;
delegated legislation may be inconsistent with the
provisions of the parent Act or statute law or the
general law; there may be noncompliance with the
procedural requirement as laid down in the parent
Act. It is the function of the courts to keep all
authorities within the confines of the law by supplying
the doctrine of ultra vires.”

Ext.P6 circular has been rightly found by the learned Single Judge

as one suffering from the vice of arbitrariness and is liable to be

struck down to the extent specified. We find no reason to interfere

with the said finding of the learned Single Judge.

12. The final contention put forth by the learned counsel for

the 1st respondent is that much time has elapsed after the issuance

of Exts.P3 and P5 letters to effect destruction and that the

consignment has already lost its shelf life thus making it only fit to be

destroyed. Thus nothing worthwhile would transpire from the

direction of the learned Single Judge to the 1 st respondent to draw

and test the sample either in their own laboratory or in other

accredited laboratory. This contention cannot be sustained in the

light of the submission by the learned counsel for the

petitioner/exporter that taking note of the huge monetary
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consequence flowing from the destruction of the consignment as

well as the civil consequences arising therefrom, it is fit and proper

that the petitioner, who had already obtained favourable reports

regarding the samples from three accredited labs be permitted to

protect its interest to the extent possible by 1 st respondent drawing

and testing the sample either in their own laboratory or in other

accredited laboratory as directed by the Single Judge. The question

whether the consignment is contaminated or not by ‘Sudan Dye’ is

still relevant and important for the petitioner and cannot be termed

as stale or perfunctory.

In view of the above discussion, we find no reason to interfere

with the judgment of the learned Single Judge. The Writ Appeal is

dismissed. No costs.

Sd/-

SUSHRUT ARVIND DHARMADHIKARI
JUDGE

Sd/-

SYAM KUMAR V.M.
JUDGE
csl
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APPENDIX OF WA 534/2025

PETITIONER EXHIBITS

Exhibit P-10 TYPED COPY OF EXT P-10



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