STATE OF ASSAM & ORS. vs BANSHIDHAR SHEWBHAGWAN & CO.

The Supreme Court held that the Government's decision to auction the leasehold rights of land, previously leased to the respondent, was not mala fide or for a collateral purpose. The Court established that actions taken by authorities in bad faith or for collateral purposes can be struck down as an abuse of power. However, in this case, the evidence indicated that the Government's need for the land for defense purposes was genuine and arose due to unforeseen circumstances, thus overturning the High Court's ruling.