THE UNION TERRITORY OF PONCICHERRY vs P.V. SURESH ETC.ETC.

The Supreme Court addressed the legality of the changes in the supply rate of arrack licenses in Pondicherry, emphasizing that the Government had the authority to revise supply rates under condition 22(3) of the License. The Court held that the writ petitioners had no statutory right to a fixed quantity of arrack and that the contracts were not inherently impossible despite the petitioners' claims of incurring losses. The Court ultimately ruled that the High Court had exceeded its jurisdiction by altering the terms of the agreement, affirming the Government's right to modify supply rates.