The Kerala Government has challenged before the Supreme Court, a High Court order quashing its decision to ban sale and manufacture of Pepsi and Coke beverages in the state.
In its Special Leave Petition, the state government urged the apex court to stay the September 22, 2006 order of the Kerala High Court holding that the state did not have power to ban the soft drinks under the Prevention of Food Adulteration Act and the Rules framed thereunder.
It submitted that the permission given to the two soft drink majors to produce and sell beverages amounted to manufacture and marketing of adulterated food was prohibited under the Act.
Following a report by an NGO, Centre for Science and Environment, that the products of these companies contained pesticides above the prescribed standards, Kerala Government had on August 10 last temporarily banned the manufacture and sale of colas in the state.
It contended that the observations in the High Court judgment had no relevance for considering the ban.
On petitions filed by the two companies against the ban, the High Court had held that the state government did not have power to impose such ban under the Food Adulteration Act.