( 1 ) THE Reserve Bank of India (in short the `rbi ) under the powers conferred under Section 45mc (1) (d) of the Reserve Bank of India Act, 1934 (hereinafter referred to as the `rbi Act ) filed the winding up petition, cp. No. 191/97 in this Court.

( 2 ) THE relevant portion of Section 45mc (1) (d) of the RBI Act reads as follows:-"45mc. Power of Bank to file winding up petition. (1) The Bank, on being satisfied that a non-banking financial company. . . . . . . . . . . . . . . . . . . . . . . . . . (d) the continuance of the non-banking financial company is detrimental to the public interest or to the interest of depositors of the company, may file an application for winding up of such non-banking financial company under the Companies Act, 1956 (1 of 1956 ). "

( 3 ) EVEN though the original petition does not specify whether it was filed under Section 45mc (1) (d) of the RBI Act, during the hearing of the CA. 1416/90 which was filed by the company convening the meeting of the creditors, the learned counsel for the applicant/rbi had submitted that this petition was filed under Section 45mc (1) (d) of the RBI Act.

( 4 ) THE objects of the respondent Company were averred to be as follows:-" (a) To carry on the business of technical, financial and management consultant and advisers and to enter into collaboration agreement for the manufacture of items which the Company is entitled to produce, in India and abroad with the Companies, firms and individuals, Central and/or State government and their concerns and to render and provide all type of services including managerial, personnel secretarial, designing engineering, preparation of feasibility and project reports, drawings, plant layouts, tenders for all the plants and machinery, equipments, Buildings and other structures and helping finalisation of contracts and erection and commissioning of plants. (b) To carry on all or any of the business of Investment Company and to invest in and acquire and hold and otherwise deal in shares stocks, debentures, debenture stocks, bonds, Government Securities and any other securities, financiers of industrial, commercial and other enterprise and general financiers, provided that the Company shall not carry on the business of Banking as defined under the Banking Regulations Act, 1949. (c) To acquire by purchase, lease, exchange, hire or otherwise develop or operate land, buildings and hereditaments of any tenure or description including agricultural land, mines, quarries, tea or coffee gardens, farms, gardens, or chards, groves plantations and any estate or interest therein, and any right over or connected with land and buildings so situated and develop or to turn the same to account as may seem expedient and in particular by preparing building sites and by constructing, reconstructing, altering, improving, decorating, furnishing and maintaining hotels rooms flats, houses, restaurants, markets, shops workshops, mills, factories, warehouses, cold storage, warehouses godowns, offices, hostels, gardens, swimming pool, play grounds, buildings works and conveniences of all kinds and by leasing, hiring or disposing of the same. "

( 5 ) THE allegations in the winding up petition are as follows:-" (a) that the company was originally incorporated on 16th May, 1985 and became a public limited company on 4th March, 1991 and was re-christianed as crb Capital Markets Limited on 18th November, 1991. (b) that the company was initially provisionally classified as a limited company on 4th May, 1993 and the status was changed to Equipment Leasing Finance company. (c) that the company has applied for registration as a non-banking financial company (NBFC) on 24th October, 1996 and consequently the RBI carried out inspection of the company. Large scale complaints were received against the petitioner of in fact carrying loan and investment business and holding excess deposits to the tune of Rs. 34. 72 crores in violation of the NBFC (RBI directions 199