Kerala High Court Dismisses Appeal Against Interim Order Staying GO Fixing Bottled Water Prices At ₹13

The Kerala High Court on Tuesday dismissed the appeal challenging a Single Judge decision that stayed the government order fixing the price of bottled water in the State at Rs. 13 citing the State's lack of jurisdiction.

During the previous hearing of the case, the Division Bench comprising Chief Justice S. Manikumar and Justice Shaji P. Chaly had refused to stay the single bench decision while issuing notice to the respondents. 

The State government had argued that bottled drinking water was declared as an essential article and its cost was fixed at Rs 13 per litre to ensure its availability, at a fair price, and its equitable distribution in the State.

The Court had then enquired if the State wanted to pursue its appeal against the interim order or go back to the Single Judge for final disposal of the pleas challenging the 2019 notification.

In 2019, Kerala Bottled Water Manufacturers Association preferred a representation before the Government to take measures to control the selling price of bottled drinking water. According to them, it was being sold at exorbitant prices and different maximum retail prices within the State.

The government after considering the representation, issued a notification declaring bottled drinking water as an essential article under Kerala Essential Articles Control Act 1986. Subsequently, based on this notification, the State passed an order fixing the price of packaged drinking water as Rs.13/-.

Aggrieved by this, three petitions reached a Single Bench against the impugned Government Order and urged for an early hearing of the petition or to stay the GO pending disposal of the writ petition. Their case was that the Government orders were unsustainable and liable to be interfered with by the Court invoking the powers under Article 226 of the Constitution.

The Single Judge had examined the Kerala Essential Articles Control Act 1986 and found that as per Section 3, the power to control production, supply, distribution of essential commodities are vested with the Centre.

However, the State submitted that it is not the drinking water that is being regulated but the composite product of 'bottled drinking water' and therefore the State Government is empowered to regulate the price rate of bottled drinking water as per Act 1986.

On 15th December 2021, the Single Judge upon perusing the orders noted that it was not necessary to dispose of the petition at this stage and thereby granted an interim order in favour of the petitioners. It was against this order that the State government had moved before a division bench.

Case Title: State of Kerala & Ors v. Kerala Packaged Drinking Water Manufacturers Association

Citation: 2022 LiveLaw (Ker) 16