Jawahar Lal Gupta, J.

1. Is the action of the Central Government in ordering the amalgamation of the petitioner-bank with the Oriental Bank of Commerce and in rejecting its request for conversion into a non-banking company illegal ? This is the primary question that arises for consideration in this case. A few facts may be noticed.

2. The petitioner-bank was established in the year 1915. While it was continuing its business, the Reserve Bank of India filed an application under Section 45(1) of the Banking Regulation Act, 1949 , for an order of moratorium. On September 30, 1996, the Government of India imposed a moratorium on the petitioner up to December 31, 1996. It was, inter alia, ordered that during the period of moratorium, the bank would not, without the permission of the Reserve Bank of India in writing, grant any loan or advance, incur any liability or make any investment, etc. The petitioner challenged this order through a petition in the Delhi High Court. The Central Government as well as the Reserve Bank of India contested the petition. It was pleaded that various inspections had been conducted and that the impugned order had been passed in public interest. The w