HINDUSTAN PAPER CORPORATION LTD. vs GOVERNMENT OF KERALA & OTHERS

The Supreme Court held that Section 6 of the Kerala Forest Produce (Fixation of Selling Price) Act, 1978, which allows the State Government to exempt certain government-owned companies from the provisions of Section 5, is constitutionally valid and not violative of Article 14 of the Constitution. The Court set aside the High Court's decision that had declared Section 6 unconstitutional, affirming that the power to grant exemptions is not unfettered and must be exercised in public interest. The appeals by the appellant-company were thus allowed, reinstating the validity of the exemption granted by the State Government.