PRADESHIYA INDUSTRIAL DEVELOPMENT CORPORATION LTD. U.P. vs HINDUSTAN AERONAUTICS LTD. (LUCKNOW DIVISION)

The Supreme Court upheld the High Court's decision directing the State of Uttar Pradesh to honor its guarantee for the repayment of bonds issued by the U.P. Cooperative Spinning Mills Federation Ltd. under the Government Order dated 12.8.1998. The Court found that the State had failed to comply with its contractual obligations, despite the respondents having received partial payments. The Court rejected the appellants' arguments regarding the maintainability of the writ petition and emphasized that the respondents had suffered losses due to the premature termination of the bonds.