of this passage (see paragraph 123 below); in the view of the Chamber it
may be translated as follows :
"There is no doubt that, even though, from the purely theoretical
standpoint, the conditions of grave public necessity and of unforeseen urgency warranting adoption of the measure may be considered
to exist in the case in point, the intended purpose of the requisition
could not in practice be achieved by the order itself, since in fact there
was no resumption of the company's activity following the requisition, nor could there have been such resumption. The order therefore
lacks, generically, the juridical cause which might justify it and make
it operative."
The Court of Appeal of Palermo, for reasons to be examined more fully
below (paragraph 127), considered that the Prefect's finding had been one
of
"un tipico caso di eccesso dipotere, che è, come è noto, un vizio di legittimità dell'atto amministrativo"
("a typical case of excess of power, which is of course a defect of
lawfulness of an administrative act").
The requisition was thus found not to have been justified in the applicable
local law; if therefore, as seems to be the case, it deprived Raytheon and
Machlett of what were at the moment their most crucial rights to control
and manage, it might appear prima facie a violation of Article III, paragraph 2.
76. There remains however a crucial question to be considered.
According to the Respondent, Raytheon and Machlett were, because of
ELSI's financial position, already naked of those very rights of control
and management of which they claim to have been deprived. It is necessary now, therefore, to consider what effect, if any, the financial position
of ELSI may have had in that respect, first as a practical matter, and then
also as a question of Italian law.
77. The essence of the Applicant's claim has been throughout that
Raytheon and Machlett, which controlled ELSI, were by the requisition
deprived of the right, and of the practical possibility, of conducting an
orderly liquidation of ELSI's assets. This plan for an orderly liquidation
was however very much bound up with the financial state of ELSI, and the
two need to be considered together.
78. ELSI's lack of success was attributed by its management at least in
part to the fact that it was over-manned in relation to its order book; it had
needed repeated injections of fresh capital, and was never able to produce
an operating profit sufficient to offset its debt expense and its accumulat-