P. SRINIVASA NAICKER vs SMT. ENGAMMAMMAL AND ANOTHER

The Supreme Court ruled that under Section 68 of the Provincial Insolvency Act, 1920, the court's power to set aside a sale by the official receiver is judicial and must be exercised based on established principles. The court emphasized that interference is only justified in cases of fraud, collusion, or significant irregularities affecting the sale price. The High Court's revision was deemed improper as it failed to assess whether the District Judge's order was lawful, leading to the conclusion that the High Court cannot interfere unless the District Judge's order is found to be contrary to law.