Janatha Finance and Investments Ltd. vs Liyanage and Others – sllr 1983 volume 2 page 111

In the case between Janatha Finance and Investments Ltd. and Liyanage and Others, the court addressed the validity of orders issued by the Competent Authority under Emergency Regulations, specifically examining whether such orders were ultra vires, unlawful, or infringed fundamental rights under Articles 12(1) and 12(2) of the Constitution. The court upheld the legality of the Competent Authority’s actions, determining that the impugned orders had been made in accordance with the prescribed legal process, based on credible information, and in good faith. The principle reaffirmed was that discretionary action under emergency power regulations is permissible where undertaken reasonably and supported by substantial evidence, with judicial review limited where discretion is lawfully exercised.