Banking Regulation Act, 1949 - Part III
Section 36B of the Banking Regulation Act, 1949: High Court defined
Section 36B identifies the High Court that has jurisdiction for the purposes of Part III and Part IIIA of the Banking Regulation Act, 1949. The definition links jurisdiction to the location of the banking company's registered office, or, for a banking company incorporated outside India, to its principal place of business in India.
Text and meaning of Section 36B
Section 36B - High Court defined.
In Part III and Part IIIA, the expression "High Court", in relation to a banking company, refers to the High Court exercising jurisdiction at the place where the registered office of the banking company is situated. For a banking company incorporated outside India, it refers to the High Court exercising jurisdiction at the place where the company's principal place of business in India is situated.
This provision is a statutory jurisdictional definition. It does not create a general definition of "High Court" for every provision of the Act; its express operation is confined to Part III and Part IIIA.
Scope of Section 36B
Part III deals with suspension of business and winding up of banking companies. Part IIIA contains special provisions for the speedy disposal of winding-up proceedings. Section 36B therefore helps identify the competent High Court for proceedings and powers arising under those parts of the Act.
The relevant location is determined by the legal status of the banking company:
- Banking company incorporated in India: the place where its registered office is situated.
- Banking company incorporated outside India: the place where its principal place of business in India is situated.
How the jurisdiction rule works
Section 36B acts as a connecting provision between the banking company and the competent High Court. When Part III or Part IIIA refers to the "High Court", the court is identified by applying the location test stated in Section 36B.
For example, if an Indian banking company's registered office is situated within the territorial jurisdiction of a particular High Court, that High Court is the court referred to by Section 36B for the purposes of Part III and Part IIIA. For a foreign-incorporated banking company, the corresponding test is its principal place of business in India.
Important: This page explains the statutory definition in Section 36B. Questions concerning the maintainability, forum, transfer, insolvency, winding up, or interaction with other statutes can depend on the facts of the case and other applicable provisions.
Legislative history
The provision was inserted by Act 52 of 1953. What was originally numbered Section 36A was later renumbered as Section 36B by Act 33 of 1959 with effect from 1 October 1959.
Official source and related law
Related provisions
Section 36B should be read in the context of the provisions that follow it in Part III, including Section 37 on suspension of business and Section 38 on winding up by the High Court.