Indiana pension funds at the weekend asked the US Supreme Court to immediately delay the sale of bankrupt Chrysler to a group led by Fiat while they challenge the deal.

According to Reuters, the request, which shifts the legal battle to the highest court in the United States, was filed after a US appeals court in New York state approved Chrysler's sale to the Fiat-led group, a union-aligned trust and the US and Canadian governments.

The Chrysler ruling could set a precedent for the case of General Motors, which is using a similar quick sale strategy in its bankruptcy in New York, the report added.