Home Secretary Theresa May is seeking a judicial review of the coroner's decision not to hear top secret intelligence material in closed sessions during the July 7 inquests.
Lady Justice Hallett rejected arguments by lawyers for MI5 that she had powers to exclude the bereaved families from hearings so she could examine highly sensitive documents which would damage national security if made public.
But the Home Office is appealing against her decision, saying while it welcomed the inquests, that does not mean "that we will put lives at risk and undermine our national security by not protecting sensitive material".
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