The Supreme Court on Friday 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 500,000 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 HC judgements of April 7 and June 1 this year.

Soft drinks, hard truths

The court also issued notice to the state government.

The Panchayat's case is that it had a right to refuse withdrawal 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 500,000 litres a day saying the panchayat was not justified in refusing the renewal of licence to the plant before a scientific assessment had been made.