( 1 ) THE petitioner Reserve Bank of India (hereinafter referred to as `the RBI) is a body Corporate, established by the Reserve Bank of India Act, 1934 (hereinafter referred to as `the Act ). The petitioner has filed this petition under Section 45mc of the Act (Power of Bank to file winding up petition) for winding up of M/s. Piramal Financial Services Limited. (hereinafter referred to as `the respondent Company) and is also non-Banking Financial Institution (N. B. F. C.) and also for appointment of an Official Liquidator of the said Company and also for appointment of a Provisional Liquidator of the said Company pending winding up petition. FACTS:

( 2 ) IN the present petition the petitioner has averred in this petition that the petitioner is a regulatory authority for non-banking financial companies (NBFCs) and as such it has power under Chapter III-A i. e. collection and furnishing credit information as amended by Reserve Bank of India (Amendment) Act, 1997 which include issuing of certificate of registration to NBFCs, prescribing prudential norms, issuing directions, prohibiting NBFCs from accepting deposits, filing of winding up petitions etc. It is further stated that in exercise of powers conferred by Sections 45j, 45k and 45l of Chapter IIIB of the Act, Reserve Bank of India had issued Non-Banking Financial Companies (Reserve Bank) Directions, 1977. Non-Banking Financial Companies Acceptance of Public Deposits (RB) Directions, 1998 and NBFC Prudential Norms (RB) Directions 1998 to regulate acceptance of deposits by companies carrying on the business of non-banking financial institutions. 2. 1 it was further stated that Piramal Financial Services Limited, the Company, was incorporated on 8. 10. 1992. The Reserve Bank of India had issued a certificate under Section 45i (f) of the Act that it was a non-banking financial Company and the respondent was bound by the directions by Reserve Bank of India as amended from time to time. It was also averred that Reserve Bank of India had also issued certificate of registration dated 31. 3. 1998 pursuant to its application for the same. 2. 2 it was further stated that Reserve Bank of India has conducted scrutiny of the books of account of the Company between August 23 and 27, 1999 and the scrutiny revealed a number of unhealthy features in the working of the Company and its financial position. It was further revealed that the bank could not honour its commitment on the ground of exceeds arrangement and during the above period 110 cheques issued by the Company for an aggregate amount of Rs. 816. 01 lakhs were dishonoured. It was further stated that the Company was facing serious liquidity crisis and failed to honour its commitments. It was further stated that it was revealed in the scrutiny that the financial position of the Company is very precarious. It was further stated that the Company suffered net loss of Rs. 197. 89 lakhs for the year ended 31. 3. 1999. It was further stated that loss for the year ended on 31. 3. 1999 was Rs. 717. 72 lakhs as per the report of the auditors and ultimately the financial position as per the year ended on 31. 3. 1999 and 31. 12. 1999 is as under:-PARTICULARS Rs. in lakhs (provisional) 31. 03. 1999 31. 12. 1999 - Capital 983. 40 983. 40 Reserves and Surplus 95. 00 95. 00 Total (Owned fund) 1078. 60 1078. 40 Accumulated loss 184. 75 287. 57 Owned funds (net) 893. 65 790. 83 Total assets 3666. 25 3424. 17 Total outside liabilities 2581. 50 2442. 12 Pre-tax Profit/ (loss) 187. 89 102. 82 -2. 3 it was further stated that the Reserve Bank of India had issued show cause notice dated 6. 9. 1999 to the Company as to why the certificate of registration issued to the Company under Section 45ia should not be cancelled. The respondent Company replied to the said show cause notice. By its order dated 29. 12. 1999 the Reserve Bank of India cancelled certificate of registration issued to the Company. The said ord