- (1.) Heard Sri Shishir Chandra, learned counsel for the petitioner and Sri Surya Bhan Pandey, learned Assistant Solicitor General of India, assisted by Sri Varun Pandey, learned counsel for the respondent no.1.
(2.) The petitioner, which is a non-banking financial company, is aggrieved by the order dated 30.10.2018 passed by the respondent no.3-Deputy General Manager, Reserve Bank of India, Department of Non-Banking Supervision, Kanpur under Section 45-IA(6) of the Reserve Bank of India Act, 1934 (hereinafter referred to as "1934 Act"), whereby permission granted to the petitioner's company for carrying the business of Non-Banking Financial Institution (NBFI) has been ceased. The petitioner has also challenged the appellate order dated 26.08.2019 passed by the respondent no.1-Ministry of Finance, Department of Financial Services, Union of India, under Section 45-IA (7) of 1934 Act, whereby the appeal filed by the petitioner, bearing No.F No. 25/247/2019/BOA-II : in re: M/s Ajmani Leasing and Finance Ltd. Vs. Reserve Bank of India, against the order dated 30.10.2018, has been dismissed.
(3.) Brief facts of the case are that the petitioner's company was incorporated on 12.8.1988 under the Companies Act, 1956 and was granted a Certificate of Registration, bearing No. A-12.00284 dated 10.1.2001 by the Reserve Bank of India (hereinafter referred to as "Bank") and on reclassification of the Company as an Asset Finance Company, CoR No.A-1200284, dated 21.9.2007 was issued to it, under the provisions of Section 45-IA of 1934 Act to carry on the business of a non-banking financial institution (NBFI) subject to fulfilling the requirements under Chapter III-B of the 1934 Act and complying the directions, regulations including prudential norms issued by the Bank from time to time as also the terms and conditions under which the said Certificate of Registration was issued to it. The said Certificate of Registration was cancelled by the Reserve Bank of India vide order dated 30.10.2018 in terms of Section 45-IA (6) of 1934 Act on account of its failure to comply with the directions of the Reserve Bank of India as regard achievement of the specified Net Owned Fund (NOF).;