Capag Vs. Union of
India & ANR
 INSC 338 (3 March 2008)
S.H. KAPADIA & B. SUDERSHAN REDDY O R D E R CIVIL APPEAL NO. 1761 OF 2008 (Arising out of SLP(C)No.
19376/2007) Leave granted.
After pendency of the writ petition for twenty years the High Court has held
that since the writ petition was filed against show cause notice the parties
ought to have gone through the process of adjudication and since that was not
done the petition stood dismissed.
In the present case we are concerned with project import. Appellant contends
the case is covered by the judgment of this Court in the case of Union of India
v. Tovo Engineering Ltd. 2006 (7) SCC 592. Learned counsel for the Department
contends before us that some of the equipments in the project were not prime
-2- Suffice it to state that the High Court should not have dismissed the
writ petition after twenty years without examining the allegations in the show
cause notice and without considering the judgment of this Court in the case of
Tovo Engineering Ltd. (supra).
Accordingly we set aside the impugned order and restore the writ petition to
the file of the High Court. We do not wish to express any view on the merits of
the case. All contentions on both sides are expressly kept open.
We grant liberty to Union of India to file additional affidavit, if so
Needless to add that the appellant may file its further rejoinder, if so
The bank guarantee and the bonds furnished during the pendency of the writ
petition shall be kept alive.
This appeal is allowed.