M/S. HINDUSTAN ANTIBIOTICS LTD. vs M/S.PARENTERAL DRUGS(INDIA) P.LTD..

The Supreme Court held that the Madhya Pradesh High Court exceeded its jurisdiction by directing the State Government to prosecute officers of Hindustan Antibiotics Ltd. for supplying sub-standard I.V. Fluids without issuing a show cause notice, violating principles of natural justice. The Court emphasized that the core issue was whether the Government has absolute discretion in awarding contracts, which was not adequately addressed by the High Court. The appeal was allowed, and the direction for prosecution was set aside.