Friday, August 12 2005 14:31 Hrs (IST) - World Time -

New Delhi: The Supreme Court today (August 12, 2005) issued a notice to soft drink major Coca Cola on an application by Perumatty Panchayat in Kerala seeking to stay the order of Kerala High Court allowing the company's Plachimada-based bottling unit to draw five lakh litres of ground water per day.

The application, which came for hearing before the bench of Justice Arijit Pasayat and Justice B N Srikrishna, sought to stay the Kerala High Court judgements of April 7 and June 1 this year.

The court also issued notice to the State Government.

The Panchayat's case is that it had a right to refuse drawal of large quantities of ground water by Coca Cola, keeping in view the interests of agriculture and domestic consumers.

The matter went to court when it refused to allow the company to draw water.

The Kerala High Court had given the decision in Coca Cola's favour, permitting its bottling plant at Plachimada in Palakkad district to draw groundwater not exceeding five lakh litres a day, saying the Panchayat was not justified in refusing the renewal of license to the plant before a scientific assessment had been made.