SC junks Kerala govts appeal against PepsiCo

  • 12/02/2008

  • Financial Express

The Supreme Court on Monday upheld the Kerala High Court verdict quashing an order of a panchayat that canceled the licence of soft-drinks major Pepsi's plant at Kanjikode in Palakaad district. A Bench headed by Justice Arijit Passayat dismissed the appeal filed by the state government against the HC judgement, which held that the Puthussery panchayat had no jurisdiction under the Kerala Panchayat Raj Act in the matter of issuing, renewal or cancellation of license since the area had been excluded from the Act's purview. "We are not inclined to interfere with the judgement of the High Court,' the SC Bench, also comprising P Sathasivam said. The High Court had said the industry was located in an industrial area notified as integrated industrial townships. In 2003, the panchayat canceled the plant's licence, alleging that excessive groundwater was being utilised by it. However, while allowing the petition filed by PepsiCo India Holdings Pvt Ltd, the High Court had said the courts cannot be blamed for this predicament. Legislature and executive in their wisdom excluded the industrial area from the Act's purview, the High Court had said.