BHOPAL SUGAR INDUSTRIES LTD. vs STATE OF M.P. & OTHERS

The Supreme Court held that Section 21(1) of the Madhya Pradesh Sugar Cane (Regulation of Supply & Purchase) Act, 1958, imposes a commission obligation on sugarcane purchases, which is akin to a fee requiring quid pro quo for services rendered. The Court found that the Cane Development Council's demand for commission on purchases from 'non-reserved area' was justified due to the services provided for better cane production and distribution. The appeal was dismissed, affirming the legality of the commission imposed by the Council.