HC asks Panchayat to renew Coke license within one week

kochi: The Kerala High Court on Wednesday directed the Perumatty Grama Panchayat to renew the license of soft drink giant Coca-Cola's controversial plant at Plachimada in Palakkad district, within one week.

A Division Bench of the High Court issued the direction to the licensing authority of the panchayat to renew the license for the Hindustan Coca-Cola Beverages Ltd on a petition by the latter.

The bench comprising Justice M. Ramachandran and Justice K.P. Balachandran further said if a formal license was not issued by the panchayat within one week, it should be deemed that the company possesses such license and it will be within their right to carry on the functioning of the factory with effect from June 10 for a period of two years.

The Court noted that even after the Cola plant fulfilled all mandatory conditions, the panchayat denied license to it. ``This was highly improper and per se shows a closed mind. The orders of the Court had been trifled with and we restrain ourselves from using strong words,'' the order said.

The court added the ''panchayat has been ill-advised in the course followed, and if further directions are not followed, it may tantamount to shirking of responsibility and we have to ensure lawful orders are obeyed.

"A panchayat is entitled to hold an opinion but when courts have pronounced upon rights and abilities, they have to gracefully accept the verdict. This is the rule of the law, as we understand it,'' the order further stated.

In its petition, the Cola company submitted that notwithstanding the direction in the earlier judgement, a negative approach had been shown by the panchayat which refused to renew the licence.

The stance of the panchayat was that it had discussed all the aspects in the case and was convinced that the company had not submitted application for renewal, fulfilling conditions stipulated by the High Court.

But the Court found that along with the applications, Coca-Cola submitted clearance certificates and licences issued under pollution control law and Factories Act. The enclosures included licences issued by director of Factories and Boilers, consent letter under Air (Prevention and Control of Pollution act) and the consent letter of the Water (Prevention and Control of Pollution Act).

The High Court, in April, had allowed the Plachimada plant to draw groundwater not exceeding five lakh litres per day for the year 2005-2006 taking note of the average rainfall. However, the Panchayat declined to renew the licence forcing the company to approach the High Court again.

A three-year-old agitation, led by tribals and later enforced by political parties and activist organistions, is going on before the plant, demanding its permanent closure.