WELCOME HOTEL AND OTHERS vs STATE OF ANDHRA PRADESH AND OTHERS

The Supreme Court held that the term 'foodstuffs' in Section 2(a)(v) of the Essential Commodities Act, 1955 includes cooked food, thereby affirming the State's authority to regulate prices of such items. The Court dismissed the petitioners' claims that the price control measures were arbitrary and violated Article 14, stating that the mechanics of price fixation are generally valid unless proven discriminatory. The ruling clarified that the fixation of maximum prices does not guarantee profitability for the petitioners, who operate diverse food establishments.