KRISHI UTPADAN MANDI SAMITI vs M/S. BAIDYANATH AYURVED BHAWAN(P)LTD&ANR

The Supreme Court held that under Section 9 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964, a company manufacturing Ayurvedic medicines is required to obtain a license if it purchases agricultural produce for commercial use, even if the produce is used internally in manufacturing. The Court found that the High Court erred in interpreting 'domestic consumption' too broadly, as the respondent's activities constituted commercial trading. The appeal was allowed, reversing the High Court's decision and affirming the requirement for a license under the Act.