KASTURI LAL LAKSHMI REDDY vs STATE OF JAMMU AND KASHMIR & ANOTHER

The Supreme Court examined the legality of government contracts concerning the extraction of resin from Chir trees in Jammu & Kashmir, emphasizing the need for reasonableness under Articles 14 and 19 of the Constitution. The Court held that the State's policy to restrict resin export outside its territory to promote local industries was valid and in public interest. The judgment clarified the types of contracts permissible for resin extraction, affirming the State's discretion in auctioning these contracts while ensuring compliance with constitutional mandates.