The opposition was angry at Delhi's dissolution move

However the court also said that fresh elections in Bihar - due to begin later this month - should go ahead.

The Congress-led government in Delhi took direct control in May after elections resulted in a hung assembly.

The move angered the opposition BJP, which said it had not been given enough time to form a majority government.

'Buying support'

The Supreme Court order followed a petition filed by some opposition members of the dissolved assembly.

Congress rejected their complaints, saying the dissolution was aimed at preventing any efforts to buy legislators' support in the minority body.

Following the court ruling, the opposition Bharatiya Janata Party said the order proved that the Bihar governor did not act in a fair manner by denying them a chance to form the government.

A BJP ally, the Janata Dal United, demanded the prime minister's resignation, saying Manmohan Singh should step down to take moral responsibility for his government's decision.

Voting for 243 assembly seats in Bihar will be held in four phases in October and November, with the counting to be held on 22 November.

Bihar is one of India's poorest and most lawless states.

In polling held in February, no political alliance was able to win the 122 seats required to secure a majority.

Friday's verdict is being widely seen as a setback to Congress and its key ally, the regional Rashtriya Janata Dal (RJD).

The RJD, which had ruled the state without a break for 15 years, won only 75 of the 215 seats it contested.