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2001 (7) TMI 1220

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..... 1987 of Board of Industrial and Financial Reconstruction (BIFR). The main ground of challenge in the writ petition is that without indicating any basis or reason the directions of the BIFR have been substituted. The learned counsel for the respondents 3 (ICICI Ltd.) and 4 (Nirlon Limited), on the other hand, submitted that though the order passed by the AAIFR is not very explicit, yet the same was passed after taking into consideration all relevant aspects and while exercising jurisdiction under article 226 of the Constitution of India, 1950 (the Constitution) no interference is called for. It is also stated by their counsel that after waiting for a considerable length of time, the order passed by the AAIFR has been given effect to and prop .....

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..... t the parties are free to approach BIFR for fixation of the rent. The appeal is allowed accordingly". A bare book at the order would show that it is not reasoned. We are unable to accept the stand of the learned counsel for the respondents 3 and 4 that though reasons have not been indicated, yet they are inherent. 3. Duty to give reasons entails a duty to rationalize the decision. Reasons therefore help to structure the exercise of discretion, and the necessity of explaining why a decision is reached. It requires one to address one s mind to be relevant factors, which ought to be taken into account. Further, furnishing reasons affords the affected party to know why a decision was reached. In C.B. Gautam v. Union of India [1993] .....

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..... essity of explaining why a decision is reached requires one to address one s mind to the relevant factors which ought to be taken into account. Secondly, furnishing reasons satisfies an important desire on the part of the affected persons to know why a decision was reached. Basic fairness requires that those in authority over others should tell them why they are subject to some liability or have been refused some benefit. Giving of reasons enables the Courts and the Tribunals to effectively and meaningfully exercise their respective appellate or supervisory power. The most compelling consideration, for instance, for disclosure of reasons in support of an order or decision is that the same ensures proper application of mind, reduces the poss .....

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