STATE OF BIHAR vs BIHAR DISTILLERY ETC.

The Supreme Court addressed the regulatory framework of the Bihar Excise Act, 1915, concerning the distribution and sale of country liquor. It held that the State's obligation to supply liquor directly to retailers, as mandated by interim orders from the Patna High Court, was valid until the contracts were settled. The Court emphasized that the cost price of country liquor should reflect increases due to external factors such as sales tax and price control orders, thereby establishing the principle that regulatory frameworks must adapt to economic changes. The judgment affirmed the legality of the State's actions during the interim period.