SHRI KRISHNA GYANODAY SUGAR LTD. vs STATE OF BIHAR .

The Supreme Court addressed the validity of the Bihar Sugar Undertakings (Acquisition) Act, 1976, particularly focusing on Section 3 which mandates the transfer of sugar undertakings to the Government. The Court held that the notification issued under Section 17 to include additional sugar mills was ultra vires, thereby quashing the takeovers. The judgment emphasized the need for legislative authority in such acquisitions, reinforcing the principle that statutory provisions must be adhered to for lawful acquisition of property.