MADANLAL SETHI vs STATE OF M.P. .

The Supreme Court examined the validity of the Madhya Pradesh Kashtha Chiran (Viniyaman) Adhiniyam, 1984 and Rule 27 of the M.P. (Transit Forest Produce) Rules, 1961, which impose record-keeping requirements on saw mill owners. The appellants argued that these provisions violate their fundamental right to carry on business under Article 19(1)(g) of the Constitution by imposing unreasonable restrictions. The Court held that while regulation is necessary, the requirements must not be arbitrary or excessively burdensome, thus emphasizing the need for a balance between regulation and business freedom.