U.P. State Sugar Corporation And ... vs M/S Mahalchand M. Kothari And Others

The Supreme Court upheld the decrees of the lower courts in favor of M/s Mahalchand M. Kothari, confirming that the U.P. State Sugar Corporation is liable for non-supply of sugar under a contract with the Receiver, despite the Corporation's claims of lack of privity of contract. The Court emphasized that the transfer of the Sugar Mill to the Corporation under Section 3 of the Uttar Pradesh Sugar Undertakings (Acquisition) Act, 1971, made it responsible for the obligations arising from contracts entered into prior to the acquisition. The appeals by the Corporation were dismissed, affirming the lower court's rulings and the validity of the plaintiff's claims.