Remand for fresh consideration after challenge to registration cancellation under the Net Owned Fund requirement

Cancellation of the petitioner's certificate of registration and the appellate rejection were challenged on the basis of the Net Owned Fund requirement. The Delhi HC noted the Reserve Bank of India's stand that it would re-examine the matter on remand and the petitioner's agreement to such reconsideration. In view of the current legal position and the Court's earlier judgments, the impugned orders were not treated as final for sustaining the dispute at that stage, and fresh decision-making by the Reserve Bank of India was directed. The merits were left open, and the petitioner was permitted to file additional representations and documents.

---

---

Issues: Whether the cancellation of the petitioner's certificate of registration and the appellate order rejecting the challenge thereto required interference and remand for reconsideration by the Reserve Bank of India.

Analysis: The cancellation and appellate orders were challenged in the context of the Net Owned Fund requirement and the subsequent stand of the Reserve Bank of India that it would re-examine the matter if the petition were remanded. The Court also noted that the petitioner was agreeable to such re-examination. In these circumstances, and in view of the current position of law and the judgments of the Court, the impugned orders were not treated as final for sustaining the dispute at that stage and a fresh decision by the Reserve Bank of India was directed. The Court expressly left the merits open and permitted the petitioner to place additional representation and documents before the authority.

Conclusion: The impugned cancellation and appellate orders were set aside and the matter was remanded to the Reserve Bank of India for fresh consideration.

---