The judgment established the absolute nature of meeting fixed criteria in financial legislations, the limited scope of judicial review in economic decisions, and the importance of adhering to statutory procedures.

JUDGMENT

Vipin Sanghi, J. (Oral). - CMAPPL.28832/2021

1. Exemption allowed, subject to all just exceptions.

2. The application stands disposed of.

LPA 299/2021 & CM APPL.28833/2021

3. The appellants have preferred the present appeal to assail the judgment dated 23.10.2020 passed by the learned Single Judge in W.P.(C) No. 3515/2020 titled "Jeewan Holdings Private Limited & Another Vs.Union of India & Another". The said writ petition had been preferred by the appellants being aggrieved by the cancellation of the Certificate of Registration issued in favour of appellant No.l, by the Reserve Bank of India (RBI) vide order dated 14.09.2018, as well as the order passed by the Union of India (UOI) dated 09.04.2020 affirming the order passed by the RBI, in appeal. The appellants/ petitioners, alternatively sought a direction to the UOI to consider their representation dated 10.05.2018 and condone the delay in meeting the threshold limit of Rs.200 Lakhs - a condition for grant and continuation of Certificate of Registration as a Non-Banking Financial Company with the RBI.

4. We shall refer to the appellants as petitioners hereinafter. The relevant facts have been taken note of in the impugned judgment, and since there is no dispute on facts, we extract the factual narration contained in the impugned judgment itself.

"2. Facts as set out in the petition and necessary for adjudication of the issues involved can be captured as under :-

a. Petitioner No. 1 (hereinafter after referred to as "Company") is a Company within the meaning of the Companies Act, 1956 and has been registered as a Non Banking Financial Company (NBFC) under the provisions of Section 4 5-IA of the Reserve Bank of India Act, 1934. Petitioner No. 2 is one of the Directors of Petitioner No. 1. Petitioner No. 1 is a closely held Company and its shareholdings are held with family and close Associates of Petitioner No. 2.

b. The Company being an NBFC was issued a Certificate of Registration (hereinafter referred to as "CoR") dated 15.09.2003 by the RBI under provisions of Section 45-IA of theRBI Act.

c. It is an admitted position that no NBFC could carry on its business as a Non Banking Financial Institution without having the Net Owned Fund (hereinafter referred to as "NOF") of Rs. 100 Lakhs at all material times, prior to 27.03.2015.

d. On 27.03.2015 in terms of Revised Regulatory Frame Work for NBFCs, RBI issued a Notification, specifying that a sum of Rs. 200 Lakhs as NOF shall be required by any NBFC to commence or carry on business as a NBF Institution. The Notification further provided that all NBFCs already holding the CoR issued by RBI and having NOF less than Rs. 200 Lakhs would be permitted to carry on business provided they achieve the NOF of Rs. 200 Lakhs before 01.04.2017.

e. Company achieved the NOF in excess of Rs. 70 Lakhs as on 27.03.2015 and continued to carry on its business till 01.04.2017 with an object of enhancing the NOF to the desired limit under the new Notification.

f. Petitioners aver that immediately after coming to know of the Revised Regulatory Frame Work on 27.03.2015 the Company took steps for selling its own agricultural land valued in excess ofRs. 300 Lakhs and also found a buyer and prepared a draft Agreement of Sale. Unfortunately the transaction did not materialise and the Company could not achieve the minimum threshold of NOF upto the cut-off date i.e 01.04.2017.

g. In view of the inability of the Company to raise the required NOF by 01.04.2017, RBI, vide a show-cause notice dated 02.05.2018 called upon the Company to submit its reply to show cause why the CoR should not be cancelled in terms of Sections 45-IA (6J/58B of RBI Act. The Company filed its reply on 10.05.2018 stating therein that it was desirous of raising its NOF far in excess of Rs. 200 Lakhs but was in a difficulty on account of the inability to sell its land. It was mentioned that subsequently it had been able to achieve the NOF in excess of Rs. 200 Lakhs by 28.03.2018 and all neces