SPIE CAPAG vs UNION OF INDIA

The Supreme Court held that the High Court erred in dismissing a writ petition after twenty years without adjudicating the allegations in the show cause notice and without considering the precedent set in Union of India v. Tovo Engineering Ltd. (2006) 7 SCC 592. The Court restored the writ petition to the High Court's file, allowing both parties to present further arguments and keeping all contentions open. The appeal was allowed, and the bank guarantee and bonds were ordered to remain in effect during the proceedings.