Suppression of material facts defeats writ relief where full and candid disclosure is required before equity will intervene.

Suppression of material facts in a writ petition bars discretionary relief under Articles 226 and 227. The petitioners challenged resolution and share allotments as inconsistent with a sanctioned rehabilitation scheme and BIFR directions, but they failed to disclose material facts, including their resignations as directors, the prior appointment of the respondents as directors, and earlier shareholder arrangements. The Court held that a litigant seeking extraordinary equitable jurisdiction must make full and candid disclosure; because the suppression went to the determination of the lis, the petition was not maintainable in equity and was liable to be dismissed, with interim relief vacated.

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Issues: Whether the writ petition was liable to be dismissed for suppression of material facts and whether the petitioners were entitled to relief under Articles 226 and 227 of the Constitution of India.

Analysis: The petitioners sought to challenge the resolution and share allotments on the footing that they were contrary to the sanctioned rehabilitation scheme and the BIFR directions. The Court found that the petitioners had not disclosed material facts, including their resignations as directors, the earlier appointment of the respondents as directors, and the shareholders' arrangements executed long before the petition. The Court also noted that the BIFR had already sanctioned the rehabilitation scheme and was functional when the interim order was passed. In writ jurisdiction, suppression of facts material to the determination of the lis disentitles a litigant to discretionary relief.

Conclusion: The petition was not maintainable in equity and was liable to be dismissed for suppression of material facts; the interim relief was also liable to be vacated.

Final Conclusion: Discretionary writ relief was refused because the petitioners failed to approach the Court with full and candid disclosure.

Ratio Decidendi: A writ petitioner invoking the Court's extraordinary and equitable jurisdiction must disclose all material facts fully and fairly, and suppression of facts material to the grant or denial of relief justifies dismissal without going into the merits.

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