New Delhi Feb 11: The Supreme Court today upheld the Kerala High Court verdict quashing an order of a panchayat that cancelled the licence of soft-drinks major Pepsi's plant at Kanjikode in Palakkad district.

A Bench headed by Justice Arijit Pasayat dismissed the appeal filed by the state government against the HC judgement, which held that the Puthussery panchayat had no jurisdiction under the Kerala Panchayat Raj Act in the matter of issuing, renewal or cancellation of licence since the area had been excluded from the Act's purview.

"We are not inclined to interfere with the judgement of the High Court," the SC Bench, also comprising P Sathasivam, said.

The High Court had said the industry was located in an industrial area notified as Integrated Industrial Townships.

In 2003, the panchayat cancelled the plant's licence, alleging that it was using groundwater excessively.

However, while allowing the petition filed by PepsiCo India Holdings, the High Court had said the courts cannot be blamed for this predicament.

Legislature and executive in their wisdom excluded the industrial area from the Act's purview, the High Court had said.