PANIPAT WOOLLEN & GENERAL MILLS CO. LTD.& ANOTHER vs UNION OF INDIA & OTHERS

The Supreme Court upheld the constitutional validity of the Sick Textile Undertakings (Taking over of Management) Act, 1972, and the Sick Textile Undertakings (Nationalisation) Act, 1974, stating that the legislature's inclusion of certain undertakings in the First Schedule as 'sick textile undertakings' does not require prior opportunity for the owners to be heard. The Court clarified that the legislature's decision is not arbitrary and provides criteria for inclusion, allowing for judicial challenge if the criteria are not met. The petition challenging the management takeover was dismissed.