State Of Karnataka & Anr vs K.K. Mohandas & Etc

The Supreme Court upheld the decrees of the lower courts in favor of the plaintiffs, who were excise contractors awarded the right to vend arrack for the Excise Year 1990-91. The Court found that the State of Karnataka's failure to enforce the ban on toddy sales, as announced in the Minister of Finance's Budget Speech and subsequent orders, constituted a breach of the contractual obligations owed to the plaintiffs. The Court emphasized that the State must ensure compliance with its own regulations to protect the interests of the licensed vendors under the Excise Act.