Today, Us Supreme Court Justice Ruth Bader Ginsberg put a hold on Chrysler’s sale to Fiat.  Chrysler has been negotiating the sale of most of its assets to the Italian group as it emerges from Chapter 11 Bankruptcy.

There was no indication as to how long the sale will be on hold.  In a court order Justice Ginsberg stated that the sale is “stayed pending further order.”

The order comes as a result of an appeal hearing led by a trio of Indiana state pension and construction funds.  The group, represented by attorney Glenn Kurtz, claims the sale favors Chrysler’s unsecured stakeholders, and leaves secured stakeholders, like the Indiana funds, with only 29 cents on the dollar for their combined $6.9 billion debt.

Chrysler maintains the contract with Fiat is the best offer it has had and must close the deal by June 15, before Fiat has the option to walk away from the table.

The Indiana funds further claim that the Treasury Department’s disbursement of funds from the Troubled Asset Relief Program to finance Chrysler’s bankruptcy protection may not be constitutional because the government acted without congressional authority.

In addition to the appeal by the Indiana trio, consumers and individuals in litigation with Chrysler are challenging one of the sale’s contingencies that the “New Chrysler” and Fiat would not be liable for claims brought against Chrysler prior to its sale.

Those individuals would have to seek restitution from the remainder of Chrysler not being sold to Fiat.  Those parts of the company will most likely lack the assets to pay out such claims.

These appeals arise as Congress begins to question the Obama administration’s choice to allow the government to lead Chrysler’s and GM’s restructuring.

The Senate Banking Committee plans to call Ron Bloom and Edward Montgomery to a hearing on Wednesday.  Bloom is a senior advisor to the auto task force, and Montgomery is Obama’s director of recovery for auto communities and workers.

The committee’s chairman, Sen. Christopher Dodd, D-Conn., intends to probe further into the use of TARP funds and determine whether or not taxpayers will truly benefit from its disbursement to auto companies.

All of this comes on the heels of Congress reviewing the closure of hundreds of dealerships across the country.  Last week Chrysler and GM executives were questioned by Congress as both companies moved forward in their plans to reorganize.