MANOJ I NAIK & ASSOCIATES vs OFFICIAL LIQUIDATOR

The Supreme Court addressed the issue of property sales under the Companies Act, 1956, specifically examining the discretion exercised by the Company Judge in rejecting the Official Liquidator's report on the highest bid for company assets. The Court emphasized that the valuation by Bank of Baroda at Rs. 6.25 crores significantly exceeded the highest bid of Rs. 1.03 crores, thus establishing that judicial discretion must align with market realities. The Court ultimately held that the rejection of the higher valuation was improper, leading to a directive for the assets to be sold at a fair market price.