G.D. ZALANI vs UNION OF INDIA

The Supreme Court addressed the validity of a Memorandum of Understanding (MoU) between Hindustan Antibiotics Limited (H.A.L.) and Max-GE, which was challenged by Torrent Gujarat Biotec Limited, SPIC, and P.B.G. The Court held that the rejection of the appellants' offers for collaboration was not arbitrary, emphasizing the discretion of H.A.L. as a government company under the Companies Act, 1956. The Court found no bias on the part of H.A.L.'s Managing Director and upheld the MoU, affirming the need for transparency in public sector collaborations.