M/S Prestige Garden Estates Pvt.Ltd vs State Of Karnataka & Ors

The Supreme Court addressed the legality of the Karnataka High Court's decision to cancel the auction sale of a company's assets under the Companies Act, specifically Section 391. The Court held that the High Court's summary termination of the sale proceedings was arbitrary, as no revival plan was presented, and the sale was not deemed irregular. However, the Court concluded that due to the passage of time, the acceptance of the highest bid by M/s Prestige Garden Estates Pvt. Ltd. was no longer valid, allowing for fresh bids to be called.