Institute of Legal and Management Studies

The Patna High Court has quashed an FIR lodged against M/s Siddhi Enterprises and its staff for allegedly selling beer disguised as energy drinks, holding that the beverages in question fell within the permissible standards of non-alcoholic drinks prescribed by the Bureau of Indian Standards (BIS).

Justice Alok Kumar Pandey, while allowing the writ petition filed by Kumari Punam, proprietor of Siddhi Enterprises, along with two others, ruled that the FIR did not disclose any cognizable offence under the Bihar Prohibition and Excise Act, 2016.

The case originated from a newspaper report published in February 2017 alleging that beer was being sold in the guise of energy drinks under names resembling popular beer brands such as “Thunder Bolt” and “Kingfisher.” Acting on the report, the Excise Department raided the petitioner's premises and seized beverages branded as WFM Super Strong 10000, Thousand Bolt, Kalalon Golden, and Kingfermer. The Sales Manager and Accountant of the firm were apprehended at the spot, and it was alleged that the products contained alcohol ranging between 4% and 5%.

The petitioners, however, contended that their products had valid licenses under the Food Safety and Standards Act, 2006 and were regularly tested by government laboratories. These tests consistently found ethyl alcohol content in the range of 0.2% to 0.4% v/v, which fell within the BIS standard for “non-alcoholic beer” that permits up to 0.5% v/v. They argued that subsequent higher readings of 2.24% to 2.58% reported by the Forensic Science Laboratory were a result of natural fermentation occurring over time and could not be attributed to them.

After considering the rival submissions, the Court held that the Bihar Prohibition and Excise Act prohibits intoxicating alcoholic beverages but does not extend to BIS-compliant non-alcoholic products.

"On a careful consideration of the aforesaid statutory provision, it is evident that what the Act prohibits is the intoxicant or liquor containing alcohol of any strength and purity, as per the definition of "alcoholic" under Section 2(3) of the Act. Simultaneously, it does not prohibit sale etc. of the non- alcoholic substances in conformity with the standard set by the BIS in view of the definition and clarification contained under Section 2(4)(6) of the Act."

“The petitioners were selling non-alcoholic substances according to the BIS standard. Hence, it cannot be said that the petitioners have committed any offence under the Act or that the FIR discloses any cognizable offence,” the Court observed.

The Court also noted that criminal liability must be determined on the basis of the product's condition on the date of seizure. Since the seized samples initially showed permissible alcohol levels, the petitioners could not be prosecuted on the basis of later reports suggesting a higher content due to fermentation.

Accordingly, the Court allowed the writ petition and quashed the FIR, holding that its continuance would amount to an abuse of the process of law.

Case : Kumari Punam, Proprietor of M/s Siddhi Enterprises v. The State Of Bihar

Click here to read the order