Sections 36AI and 36AJ of the Banking Regulation Act, 1949: Tribunal Powers and Procedure
Sections 36AI and 36AJ form part of the statutory framework governing the Tribunal constituted in connection with acquisition of the undertakings of banking companies. Section 36AI specifies the Tribunal's limited civil-court powers and protects confidential Central Government and Reserve Bank records. Section 36AJ governs the Tribunal's procedure, including in-camera inquiries and correction of accidental errors.
What Sections 36AI and 36AJ provide
- Section 36AI: gives the Tribunal specified powers of a civil court under the Code of Civil Procedure, 1908 for summoning persons, discovery and production of documents, affidavit evidence and commissions.
- Confidentiality safeguard: the Tribunal cannot compel the Central Government or the Reserve Bank of India to disclose records claimed to be confidential, make them part of the record, or permit inspection.
- Section 36AJ: allows the Tribunal to regulate its own procedure and conduct all or part of an inquiry in camera.
- Correction of errors: the Tribunal may correct clerical or arithmetical errors, or errors arising from accidental slips or omissions, either on its own motion or on an application by a party.
Section 36AI - Tribunal to have powers of a civil court
Meaning: Section 36AI does not convert the Tribunal into an ordinary civil court for every purpose. Instead, it confers specified procedural powers ordinarily exercised by a civil court while trying a suit under the Code of Civil Procedure, 1908.
Section 36AI(1): Civil-court powers
The Tribunal has the powers of a civil court, while trying a suit, under the Code of Civil Procedure, 1908, in respect of the following matters:
- (a) summoning and enforcing the attendance of any person and examining that person on oath;
- (b) requiring the discovery and production of documents;
- (c) receiving evidence on affidavits; and
- (d) issuing commissions for the examination of witnesses or documents.
Section 36AI(2): Protection of confidential Government and RBI records
Despite sub-section (1) and any other law in force, the Tribunal cannot compel the Central Government or the Reserve Bank of India:
- (a) to produce books of account or other documents which the Central Government or the Reserve Bank claims to be confidential;
- (b) to make such books or documents part of the record of the Tribunal's proceedings; or
- (c) to permit inspection of such books or documents by a party or any other person.
Section 36AJ - Procedure of the Tribunal
Meaning: Section 36AJ gives the Tribunal procedural flexibility while preserving express statutory powers concerning private hearings and correction of accidental errors.
Section 36AJ(1): Power to regulate procedure
The Tribunal may regulate its own procedure. This enables it to manage the manner in which proceedings are conducted, subject to the Banking Regulation Act, 1949 and applicable principles of law.
Section 36AJ(2): Inquiry may be held in camera
The Tribunal may hold the whole or any part of its inquiry in camera. An in-camera proceeding is one conducted privately rather than in an open public hearing.
Section 36AJ(3): Correction of accidental errors
The Tribunal may correct a clerical or arithmetical error in its order, or an error arising from an accidental slip or omission. The correction may be made at any time, either by the Tribunal on its own motion or on the application of a party.
Related provisions of the Banking Regulation Act, 1949
For the statutory sequence surrounding the Tribunal, readers may also refer to Section 36AG - compensation to shareholders, Section 36AH - constitution of the Tribunal, and Section 36B - High Court defined.
Official statutory source
The current text of the Banking Regulation Act, 1949 can be checked on the Government of India's India Code portal. Readers should verify the latest statutory text, amendments and notifications when relying on the provision for a legal proceeding.