SHIVASHAKTI SUGARS LTD vs SHREE RENUKA SUGAR LTD .

The Supreme Court examined the regulatory framework under the Industries (Development and Regulation) Act, 1951, particularly regarding the sugar industry as specified in Entry 25 of the First Schedule. It held that Sections 11 and 12 of the Act mandate compulsory licensing for sugar factories, and that the Essential Commodities Act, 1955 empowers the government to regulate pricing and distribution of sugarcane. The Court upheld the validity of the guidelines issued by the government for licensing new sugar factories, emphasizing the importance of cane availability and economic capacity in the licensing process.