The Kerala high court on Thursday permitted soft drinks major Coca-Cola's bottling plant at Plachimada to draw groundwater not exceeding 500,000 litres a day.

A Division Bench, comprising Justice M Ramachandran and Justice K P Balachandran also held that the Perumatty panchayat in Palakaad district was not justified in refusing the renewal of licence to the plant before a scientific assessment had been made.

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It granted the permission to Coca-Cola Beverages Ltd while allowing its writ appeal seeking permission to resumeproduction at its Plachimada plant.

The Bench, however, said the company had no right to accumulate water in case of non-utilisation of the said quantity per day.

The bench directed the panchayat to grant licence to the company if they possessed licence under the Factories Act.

In the 46-page judgment, the court held that it may not be within the Panchayat's jurisdiction to enquire about the details of machines installed, including borewells.