STATE OF M.P. & ORS. vs M/S. CHHOTABHAI JETHABHAI PATEL & CO. &

The Supreme Court held that Section 5 of the Madhya Pradesh Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1964 does not prohibit the import of tendu leaves from outside the State, nor does it restrict manufacturers from using such leaves for bidi production. The Court found that the transport of tendu leaves, once imported, is not an integral part of the State's monopoly over tendu leaves, and thus the restrictions imposed by the State were not justified under Articles 301 and 304 of the Constitution. The appeal by the State was dismissed, affirming the High Court's decision.