INTERNATIONAL COACH BUILDERS LTD. vs KARNATAKA STATE FINANCIAL CORPORATION

The Supreme Court addressed the issue of the sale of assets of a company under liquidation, specifically under Section 433 of the Companies Act, 1956 and Section 29 of the State Financial Corporation Act, 1951. The Court held that the Karnataka State Finance Corporation (KSFC) must sell the mortgaged properties in conjunction with the Official Liquidator and under the supervision of the Company Judge, ensuring that the sale proceeds are deposited in court for proper distribution. This ruling emphasizes the necessity of judicial oversight in asset sales during liquidation proceedings.