U.P.STATE SUGAR CORPN. vs M/S.MAHALCHAND M. KOTHARI

The Supreme Court upheld the decrees of the lower courts, affirming that the U.P. State Sugar Corporation is liable for the non-supply of sugar under contracts made with the Receiver managing the Sugar Mill, as per Section 3 of the Uttar Pradesh Sugar Undertakings (Acquisition) Act, 1971. The Court clarified that the transfer of the Sugar Mill to the Corporation did not absolve it of liabilities incurred during the management by the Receiver. The appeals by the Corporation were dismissed, confirming the plaintiffs' right to recover damages for breach of contract.