The case R. K. Garg v Union of India AIR 1981, SC 138 is known as the Bearer Bonds case. In this decision, the Supreme Court of India addressed issues related to the legality and constitutional validity of the Bearer Bonds (Immunities and Exemptions) Act, 1981.
The Act was challenged on the grounds of arbitrariness and potential conflict with the principles of equality before the law. The court ultimately upheld the Act, affirming the legislative decision to issue bearer bonds as a legitimate economic policy and dismissing the contention that it violated the constitutional principle of equality.
This case is significant in understanding the court's approach to economic policy legislation and judicial restraint in policy matters.