Section 36AH of the Banking Regulation Act, 1949: Constitution of the Tribunal
Section 36AH forms part of Part IIC of the Banking Regulation Act, 1949, which deals with acquisition of the undertakings of banking companies in certain cases. The section provides for constitution and composition of the Tribunal that may determine compensation matters arising under that Part.
Statutory text of Section 36AH
(1) The Central Government may, for the purpose of this Part, constitute a Tribunal which shall consist of a Chairman and two other members.
(2) The Chairman shall be a person who is, or has been, a Judge of a High Court or of the Supreme Court, and, of the two other members, one shall be a person who, in the opinion of the Central Government, has had experience of commercial banking and the other shall be a person who is a chartered accountant within the meaning of the Chartered Accountants' Act, 1949 (38 of 1949).
(3) If, for any reason, a vacancy occurs in the office of the Chairman or any other member of the Tribunal, the Central Government may fill the vacancy by appointing another person thereto in accordance with the provisions of sub-section (2), and any proceeding may be continued before the Tribunal, so constituted, from the stage at which the vacancy occurred.
(4) The Tribunal may, for the purpose of determining any compensation payable under this Part, choose one or more persons having special knowledge or experience of any relevant matter to assist it in the determination of such compensation.
Meaning and scope of Section 36AH
Section 36AH creates the adjudicatory body contemplated by Part IIC. Its role is linked to compensation arising when an undertaking of a banking company is acquired under that Part. Section 36AG permits qualifying persons to seek a reference on compensation to the Tribunal constituted under Section 36AH.
1. Constitution by the Central Government
The power to constitute the Tribunal rests with the Central Government. The provision fixes a three-member composition: one Chairman and two other members.
2. Qualification of the Chairman
The Chairman must be a person who is, or has been, a Judge of a High Court or of the Supreme Court. This requirement gives the Tribunal a judicially qualified presiding member.
3. Qualifications of the other members
One member must have experience of commercial banking in the opinion of the Central Government. The other must be a chartered accountant within the meaning of the Chartered Accountants' Act, 1949. The composition therefore combines judicial, banking and accountancy expertise.
4. Vacancy does not require proceedings to restart
If a vacancy occurs, the Central Government may appoint a replacement in accordance with sub-section (2). Proceedings may then continue from the stage at which the vacancy occurred, helping avoid repetition of already completed proceedings.
5. Assistance by persons with special knowledge
For determination of compensation under Part IIC, the Tribunal may obtain assistance from one or more persons having special knowledge or experience relevant to the matter.
Relationship with Sections 36AG, 36AI and 36AJ
- Section 36AG: deals with compensation to shareholders of an acquired bank and provides for specified compensation disputes to be referred to the Tribunal.
- Section 36AI: gives the Tribunal specified powers of a civil court for matters such as attendance of persons, production of documents, affidavits and commissions.
- Section 36AJ: allows the Tribunal to regulate its own procedure and contains related procedural provisions.
Why Section 36AH matters
The provision establishes the institutional mechanism for resolving compensation questions under Part IIC. By requiring members with judicial, commercial banking and chartered accountancy backgrounds, it is designed for disputes that may involve legal, banking and valuation issues.
Reviewed against the current India Code text of the Banking Regulation Act, 1949 on 13 September 2026.