New Delhi, Sept. 29 -- The Delhi High Court on Tuesday set aside a Food Safety and Standards Authority of India (FSSAI) order that directed Red Bull India Private Ltd to stop using the term "energy drink" on its labels, ruling that the directive was issued without giving the company a chance to respond or explain its stance. This victory for Red Bull sets a significant precedent that could raise hopes for other firms facing similar regulatory action.

In June, FSSAI issued notices to several brands including Red Bull, PepsiCo's Adrenaline Rush, Sting, Monster Energy, Hell Energy and Reliance Consumer Products' Campa Energy. The notices said these caffeinated beverages could not carry the "energy drink" label.

FSSAI said its food category...