National Textile Corpn. (Up) Ltd vs Raja Ram Jaipuria & Ors

The Supreme Court upheld the validity of the Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, specifically Section 3, which transferred the rights and interests of the SCMCL to the Central Government and subsequently to the National Textile Corporation. The Court ruled that the takeover was lawful and that the prior judgment in Swadeshi Cotton Mills vs. Union of India (1981) 1 SCC 664, which deemed the earlier takeover invalid, was superseded by the enactment of the Swadeshi Act. Consequently, the appeals by the National Textile Corporation were dismissed, affirming the High Court's decision.