A division bench comprising Justice Sujata V Manohar and Justice R P Sethi, hearing the PIL filed by former Congress MP Murli Deora, which has raised several issues from passive smoking to compensation of Rs 500 crore to be collected from the companies, issued the notice limited to the question on statutory warnings.

The notices were issued to four cigarette companies and also to the Attorney General to seek his views on the issues raised by the petitioner. Arguing for the petitioner, senior advocate Indira Jaisingh contended that "statutory warning regime is shamelessly flouted by tobacco companies which resort to every possible measure to make the warning inconspicuous including resorting tosurrogate advertising and brand stretching."

Giving an example, she said the players in a tournament sponsored by a cigarette company wear the logo of the company but without the statutory warning.

The Cigarettes (Regulation of Production, Supply and Distribution) Act of 1975 makes it mandatory for the manufacturers to display boldly the statutory warning. Terming the law in India in this regard as "hopelessly unsatisfactory", Jaisingh said this has encouraged foreign periodicals such as TIME to publish tobacco advertisements in India without any warning at all.

The petitioner has highlighted that an estimated 6.3 lakh Indians die every year due to tobacco smoking-related diseases and sought a damage of Rs. 500 crore from the tobacco companies towards health care of citizens.

Deora has cited the American example where the tobacco giants were forced by the legal authorities to pay over $ 400 billion towards health care of the citizens.

The petitioner, contrasting the tighter regimen indifferent developed countries on sale of tobacco products with that in India, said the legislature has realised the grave harmful effects of smoking yet done precious little to regulate it.

"Instead of controlling and regulating the use of tobacco products, the government has encouraged their sale and consumption," Deora said and added "In 1979, tax on raw tobacco was abolished to prevent 'harassment' of farmers."

He has requested the apex court to direct the Union ministry of health and family welfare to frame National Tobacco Policy (NTP) which should address the manufacture, marketing, sale, advertisement, distribution and consumption of tobacco products.