NEW BIHAR BIRI LEAVES CO. & ORS. vs STATE OF BIHAR & ORS.

The Supreme Court examined the constitutionality of the Bihar Kendu Leaves (Control of Trade) Act, 1973, and its associated rules, particularly focusing on Articles 14 and 19 of the Constitution. The Court held that the provisions in Clause 4(bb) and Clause 13 of the Tender Notice, which imposed unreasonable conditions on purchasers, violated the fundamental rights of citizens to enter into contracts and were thus unconstitutional. The judgment emphasized that while the State has the power to regulate trade, such regulations must satisfy the test of reasonableness as mandated by Article 19(6).