VRAJLAL MANILAL & CO. & ORS. vs STATE OF MADHYA PRADESH. & ORS.

The Supreme Court upheld the validity of Section 5(2) and Rule 9 of the Madhya Pradesh Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1964, which regulate the transport of tendu leaves, affirming that these provisions do not violate Articles 19(1)(g) and 304 of the Constitution. The Court clarified that permits are required for transporting leaves from the unit to warehouses and branches, but not for distribution to mazdoors. The High Court's dismissal of the appellants' petition challenging these provisions was affirmed, establishing that state monopoly in trade can impose reasonable restrictions.