Justice J B Pardiwala, two days ago, rejected the soft drink major's application seeking quashing of the 17 years old case.
The High Court did not accept its contention that delay in filing of the case caused it prejudice.
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Surat Municipal Corporation's food inspector, A S Licensewala, collected six bottles of the soft drink Lehar Pepsi from Kamal Enterprise, a wholesaler, in November 1997, and sent them for testing.
The report of tests, received in January 1998, said the beverage was adulterated, with excessive impurity in the form of "floated feculent gelatin".
SMC filed a complaint against Pepsico and 11 of its employees in September 2000 before a magistrate's court.
Both the magistrate as well as the sessions judge refused to quash the complaint, so the company moved the High Court.
The company contended that there was a delay of more than two years in the filing of the case, and the tested sample might have changed with the lapse of time. But the High Court did not accept this argument.