UNION OF INDIA & ANR. vs SWADESHI COTTON MILLS & ANR.

The Supreme Court addressed an appeal against an interlocutory order of the Delhi High Court that stayed the operation of a Company Law Board order under Section 408(1) of the Companies Act, 1956, which appointed additional directors to a company. The Court emphasized that it may intervene in interlocutory matters when public interest is at stake and the basis for the lower court's order is unclear. The Court ultimately upheld the need for oversight in company affairs that are prejudicial to public interest, allowing the appeal in part and modifying the stay order.