NATIONAL TEXTILE CORPN. (UP) LTD. vs RAJA RAM JAIPURIA .

The Supreme Court upheld the High Court's decision dismissing the petitions of the National Textile Corporation (U.P.) Ltd. regarding the takeover of the Swadeshi Cotton Mills under Section 18AA of the Industrial Development Regulation Act, 1951. The Court reiterated that the takeover was invalid due to lack of opportunity for a hearing, as established in Swadeshi Cotton Mills vs. Union of India (1981) 1 SCC 664. The Court confirmed that the physical possession of the property by Dr. Raja Ram Jaipuria was lawful under the working arrangement made by the High Court in 1978.