THE ISHWARI KHETAN SUGAR MILLS (P) LTD. & ANOTHER ETC. vs THE STATE OF UTTAR PRADESH & ORS. ETC.

The Supreme Court upheld the constitutional validity of the U.P. Sugar Undertakings (Acquisition) Act, 1971, ruling that the State Legislature has exclusive power to legislate on sugar as it falls under Entry 24 of List II, subject to the provisions of Entries 7 and 52 of List I. The Court clarified that a mere declaration by Parliament regarding an industry does not remove it from the purview of state legislation. The acquisition of sugar undertakings by the State does not conflict with the Industries (Development and Regulation) Act, 1951, as the latter primarily concerns development and regulation, not ownership.