BENGAL NAGPUR COTTON MILLS vs BOARD OF REVENUE, MADHYA PRADESH & ORS.

The Supreme Court held that the agreement of March 1, 1943, exempting Bengal Nagpur Cotton Mills Ltd. from octroi duty could not be considered law, as it was merely a contract between the ruler of the former State of Nandgaon and the company. The Court ruled that the Municipal Committee's resolution to levy octroi was valid and binding after the merger of the State with Madhya Pradesh, as the ruler's desire to exempt the company ceased upon his loss of sovereignty. The appeal against the High Court's dismissal of the petition under Articles 226 and 227 was therefore rejected.