State Appeals Against Single Judge Order Staying GO Fixing Bottled Water Prices; Kerala High Court Issues Notice

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

However, the Division Bench comprising Chief Justice S. Manikumar and Justice Shaji P. Chaly refused to stay the single bench decision. 

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. 

The Bench will take up the matter for further consideration on January 11th. 

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