Delhi High Court Rejects PB Agro's Challenge Against Bollywood Stars Over Surrogate Advertising
Court Dismisses PB Agro's Plea
The Delhi High Court has turned down a petition from PB Agro, the firm behind a well-known pan masala brand, which aimed to contest show cause notices issued by the Maharashtra Food and Drug Administration (FDA) to Bollywood celebrities Shah Rukh Khan, Ajay Devgn, and Tiger Shroff. This legal action was based on claims that these actors were participating in surrogate advertising for pan masala, a practice that has come under intense regulatory examination.
Justice Swarnakanta Sharma presided over the case and ultimately dismissed the petition due to issues related to territorial jurisdiction. The court noted that any grievances regarding notices from Maharashtra's authorities should be addressed within that state, rather than in Delhi. As a result, the court concluded that the petitioner did not adequately prove that a significant part of the cause of action took place in the national capital.
Arguments on Jurisdiction and Court's Ruling
During the hearings, PB Agro argued that the Delhi High Court had the jurisdiction to hear the matter since the company is based in Delhi. They claimed that the advertising campaigns were developed and executed in the capital, and that payments to the actors were also processed there. However, the court found these claims insufficient to establish jurisdiction, emphasizing that the notices were specifically aimed at the actors, not the company.
Regulatory Perspective and Next Steps
The court pointed out that the Maharashtra FDA had not required PB Agro to submit a response, provide specific documents, or appear before the state authority, which further weakened the petitioner's case for intervention in Delhi. The Central Consumer Protection Authority (CCPA) and the central government had also contested the petition's validity, suggesting that the company should have sought relief from the Bombay High Court. With the Delhi High Court declining to intervene, the legal battle over surrogate advertising is likely to proceed in the appropriate jurisdiction in Maharashtra.