ANIL KUMAR NEOTIA AND ORS. vs UNION OF INDIA & ORS.

The Supreme Court dismissed the writ petition challenging the constitutional validity of Sections 3 and 4 of the Swadeshi Cotton Mills Ltd. (Acquisition and Transfer of Undertakings) Act, 1986, asserting that the acquisition served a public purpose and provided for compensation. The Court held that the petitioners' claims were untenable as they had been previously addressed in an earlier judgment, which concluded that the negative net wealth of the company justified the acquisition. The Court reiterated that the Act aligned with the principles of Articles 39(b) and 39(c) of the Constitution, ensuring that mismanagement did not benefit the company at the expense of public funds.