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2006 (8) TMI 317 - SC - Companies LawWhether the decision dated 7-1-2006 of the Central Government imposing moratorium and to appoint two directors was mala fide, ultra vires the powers of the Central Government and the RBI, bad in law and void and unjustified on facts? Whether the notification dated 9-1-2006 containing the proposed scheme of amalgamation and the decision to sanction the amalgamation dated 24-1-2006 were mala fide, ultra vires the powers of the Central Government and the RBI and unjustified on facts? Held that:- Appeal dismissed. To characterize a decision of the administrator as "irrational" the Court has to hold, on material, that it is a decision "so outrageous" as to be in total defiance of logic or moral standards. Adoption of "proportionality" into administrative law was left for the future.In essence, the test is to see whether there is any infirmity in the decision-making process and not in the decision itself. Thus the judgment of the High Court does not suffer from any infirmity to warrant interference.
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