M/S. NGEF LTD. vs M/S. CHANDRA DEVELOPERS PVT. LTD.

The Supreme Court upheld the Karnataka High Court's decision affirming the Company Judge's order regarding the sale of land by NGEF Ltd. under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The Court ruled that the resolution dated 25.02.2002 did not constitute a concluded contract for the sale of land to Chandra Developers, as it was subject to BIFR's approval and the company's financial constraints. The Court emphasized the necessity of adhering to statutory provisions and the need for proper authorization in transactions involving sick companies.