MAHARASHTRA STATE TEXTILE CORPORATION LTD. vs THE OFFICIAL LIQUIDATOR AND ORS.

The Supreme Court held that the Bombay High Court misinterpreted the interim order dated 28-9-1973, which did not authorize the sale of assets by the official liquidator. The Court clarified that the interim order maintained the status quo and did not permit the sale of assets pending the Writ Petition's resolution. Consequently, the Court allowed the appeal, emphasizing that the sale conducted was invalid due to the improper construction of the interim order under the Sick Textile Undertakings (Taking over of Management) Act, 1972, specifically Section 8.