Net Owned Fund compliance remained mandatory despite a pending amalgamation proposal, sustaining cancellation of NBFC registration.

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....Failure to maintain the prescribed Net Owned Fund justified cancellation of an NBFC's registration. A pending amalgamation proposal did not satisfy the requirement because approval, implementation and any resulting capital increase remained contingent. Judicial review was confined to procedural legality, natural justice and jurisdictional error; no defect was identified in the cancellation or appellate process. The amalgamation proposal was rejected and that rejection was not separately challenged. As the company also could not meet the subsisting Net Owned Fund requirement, setting aside cancellation would have been futile. The High Court upheld cancellation and dismissed the writ petition.....