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2019 (4) TMI 1627 - HC - Indian LawsPrinciples of natural justice - cancellation of certificate of registration - section 45-IA (7) of the Act of 1934 - HELD THAT:- In the facts of the present case, the petitioner was issued a show cause notice, to which the petitioner replied in writing. In its reply, the petitioner acknowledged that there was default on the part of the petitioner in meeting the requirement of having a net owned fund of ₹ 200 lakhs as at March 31, 2017. Principles of natural justice do not require that, a delinquent has to be given an oral hearing at every time or at every stage. It is sufficient compliance of the principles of natural justice when, a delinquent issued a show cause notice delineating the charges which is required to be met and is afforded a reasonable opportunity of making a representation with regard thereto. In the present case, in its reply the petitioner did not ask for an oral hearing to be granted. The second proviso to Section 45-IA(6) does not mandate an oral hearing to be given. Requirement of a statute to hear the parties does automatically translate into a right of oral hearing at every stage or any stage for that matter. It would be sufficient compliance with the requirements of the second proviso to Section 45-IA(6) allows the notice an opportunity to make a representation and considers such representation in an impartial manner, with an open mind, fairly and in accordance with law. Section 45-IA(7) explanation provides the formula by which the net owned fund that, a company carrying on a business as a non-banking financial companies, is required to be calculated. Nothing is placed on record to suggest that, the calculation of net owned fund by applying the formula prescribed in the statute is in excess of ₹ 200 lakhs as on March 31, 2017. The impugned order contains reasons. It is not vitiated by breach of principles of natural justice. Petition dismissed - decided against petitioner.
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