STATE OF U P vs LAXMAN RICE MILLS

The Supreme Court held that the U.P. Rice and Paddy (Levy and Regulation of Trade) Order, 1985, under Section 3 of the Essential Commodities Act, does not apply to rice stock existing with millers as of the intervening night of September 30 and October 1, 1995. The Court found that the High Court erred in directing the levy to be effective only from October 1, 1995, and clarified that the exemption for stock on hand as of September 30, 1995, remains valid. Consequently, the appeals were dismissed with no costs.