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Issues: Whether the High Court was justified in interfering with the Corporation's decision to take over the industrial unit and refuse further rehabilitation, and whether the Corporation's commercial decision could be substituted by judicial directions.
Analysis: The Corporation was an autonomous statutory body required to act on its own assessment of the facts, advice received, and its commercial judgment. Its decision could not be challenged merely because a different and more prudent course was possible; interference would be warranted only if the action was shown to be mala fide. The Company had persistently defaulted in repayment, recovery proceedings had been initiated, the unit had deteriorated over time, and the rehabilitation proposal itself required substantial further investment to make the unit only marginally viable. In such circumstances, the Court held that the matter lay in the realm of commercial decision-making and the High Court ought not to have substituted its own view for that of the Corporation.
Conclusion: The High Court's interference was unjustified and the Corporation's decision not to pursue further rehabilitation was sustained.
Final Conclusion: Judicial interference is inappropriate in the absence of mala fides where an autonomous financial corporation takes a commercial decision on revival or recovery of its dues.
Ratio Decidendi: Courts should not substitute their own commercial assessment for that of an autonomous statutory financial corporation unless the corporation's action is shown to be mala fide or otherwise legally impermissible.
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