KARNATAKA STATE INDS.INVT.&DEV.CORPN.LTD vs M/S CAVALET INDIA LTD. .

The Supreme Court examined the actions of Karnataka State Industrial Investment and Development Corporation (KSIIDC) under Section 29 of the State Financial Corporation Act, 1951, determining whether KSIIDC acted bona fide in selling the borrower's properties. The Court upheld the decision of the Karnataka High Court that mandated KSIIDC to allow the borrower an opportunity to present a better offer, emphasizing compliance with procedural guidelines established in Mahesh Chandra v. Regional Manager, U.P. Financial Corporation. Ultimately, the Court ruled that KSIIDC could proceed with the sale to Vinpack if the borrower failed to meet the stipulated conditions, affirming the High Court's order.