S.K.G. SUGAR LTD. vs STATE OF BIHAR & ORS.

The Supreme Court ruled that under Section 31 of the Bihar Sugarcane (Regulation of Supply and Purchase) Act, 1981, the State Government lacks the authority to fix a sugarcane price higher than the minimum price set by the Central Government under Clause 3 of the Sugarcane (Control) Order, 1966. The Court held that since the appellant had paid the minimum price, there were no dues owed to the cane growers, and the Collector's certificate for recovery was invalid. The judgment of the Patna High Court was thus set aside, affirming the legal principle that state regulations cannot override central pricing determinations in this context.