SARASWATI INDUSTRIAL SYNDICATE LTD. ETC. vs UNION OF INDIA

The Supreme Court upheld the government's method of fixing ex-factory prices for sugar under Clause 7(2), stating that price fixation is legislative in nature and does not require adherence to natural justice principles. The Court emphasized that the criterion for price fixation must be reasonable, demonstrating a nexus between the factors considered and the purpose of the exercise. The Court found no evidence of arbitrary or unreasonable action by the government in the price fixation process, dismissing the appeals against the price notifications dated 1st February 1967 and 28th June 1967.