Pepsi, Coke move HC on sweetner limit

Pepsi, Coke move HC on sweetner limit
PRESS TRUST OF INDIA

NEW DELHI, DECEMBER 15: Soft drink giants Pepsico and Coca Cola Holdings today moved the Delhi High Court seeking quashing of a government circular to the states and the Union territories informing them about a proposal for fixing minimum limit of artificial sweeteners in soft drink at five per cent.

Pepsi and coke in separate petitions before a division bench comprising Justice Devinder Gupta and Justice S K Agarwal said the circular by Director General of Health Services (DGHS) to the states and UTs on June 17 informing about its press statement regarding the five per cent limit, was "ultra vires, arbitrary and discriminatory."

Additional Solicitor General (ASG) S B Jaisinghani and standing counsel Upamanyu Hazarika strongly opposed the plea and said that "no cause of action lies as the circular was not binding on any party."

Jaisinghani said that no "statutory notification" had been issued by the government to enforce the proposal and, therefore, it was not binding. "Does it give them (Pepsi and CocaCola) reason to invoke judicial process. This is merely a press statement aimed at informing the public," he said.

Cause of action would have been there if the government had made it binding on them to abide by the proposal, the ASG said adding that the five per cent limit referred in the press statement could even be rejected by the government.

The hearing was adjourned to January 24 after ASG said he would like to place authorities on the maintainability of the petitions.

As the court asked about the government stand on the apprehension of the soft drink companies that their rights were "threatened" with the government proposal, Jaisinghani said at the most they could file a suit for injunction.

"But I know they will find difficulty in filing a suit and that is why they have moved a civil writ," he claimed.

He said a cause of action under civil writ would lie only if the threatened injury was irreparable. "Heaven is not going to fall even if the government has issued notification," hesaid.

Earlier, senior advocate Fali S Nariman appearing for Pepsi said that the rights and interests of his client were threatened with the government's proposal.