M/S PENNAR INDUSTRIES LTD. vs STATE OF A.P. .

The Supreme Court held that the Andhra Pradesh High Court's order requiring the appellant to pay 50% of the disputed tax under the A.P. Tax on Entry of Goods into Local Areas Act, 2001 was not justified given the appellant's status as a sick company. The Court emphasized that stay applications must be considered judiciously, taking into account the potential public mischief and private injury. Consequently, the Court directed that no further deposit is required until the writ petition is disposed of, without expressing any opinion on the merits of the case.