ANDHRA SUGARS LTD. & ANR. ETC. vs STATE OF ANDHRA PRADESH & ORS.

The Supreme Court upheld the validity of Section 21 of the Andhra Pradesh Sugar-cane (Regulation of Supply and Purchase) Act, 1961, which allows the State Government to tax sugarcane purchases by factories. The Court ruled that the purchases made under the compulsion of law do not violate Article 14 or Article 301 of the Constitution, as the agreements formed between canegrowers and factory owners are enforceable contracts under the Indian Contract Act. The Court emphasized that the law ensures fairness in transactions between canegrowers and factory owners, thus supporting the public interest.