MAHABIR AUTO STORES & ORS. vs INDIAN OIL CORPORATION & ORS.

The Supreme Court held that the Indian Oil Corporation is an instrumentality of the State under Article 12 of the Constitution, and its actions regarding contract supply must be informed by reason, as per Article 14. The Court emphasized that actions taken without reason can be deemed arbitrary and can be challenged under Articles 32 and 226. The appeal was allowed, reversing the High Court's dismissal of the writ petition, thereby affirming the applicability of principles of natural justice in state actions.