DIVYA MFG.CO.(P)LTD. vs UNION BANK OF INDIA

The Supreme Court upheld the High Court's decision to set aside the sale of Tirupati Woolen Mills' assets to Divya Manufacturing Co. due to procedural irregularities in the liquidation process. The Court emphasized the need for transparency and fairness in the sale of assets under the Companies Act, particularly in relation to the rights of creditors and employees. The judgment reinforced the principle that all stakeholders must be adequately informed and given an opportunity to participate in the sale process, ensuring compliance with Section 529A of the Companies Act.