R. Sai Bharathi vs J. Jayalalitha & Ors

The Supreme Court addressed the governance and operational framework of the Tamil Nadu Small Industries Corporation Limited (TANSI) under the Companies Act, 1956, emphasizing the government's authority to appoint and remove directors and manage corporate decisions as per Articles of Association. The Court held that the government must approve any disposal of land transferred to TANSI, reinforcing the principle that public sector undertakings must operate within the confines of governmental oversight. The judgment clarified the legal obligations of TANSI in relation to its financial decisions and property management, ultimately upholding the government's directive to close loss-incurring units and seek disposal of assets.