(1) Notwithstanding anything contained in section 391 section 392, section 433 and section 583 of the Companies Act, 1956 (1 of 1956), but without prejudice to its powers under sub-section (1) of section 37 of this Act, the High Court shall order the winding up of a banking company-
(a) if the banking company is unable to pay its debts; or
(b) if an application for its winding up has been made by the Reserve bank under section 37 or this section.
(2) The Reserve Bank shall make an application under this section for the winding up of a banking company if it is directed so to do by an order under clause (b) of sub-section (4) of section 35.
(3) The Reserve Bank may make an application under this section for the winding up of a banking company-
(a) if the banking company-
(i) has failed to comply with the requirements specified in section 11; or
(ii) has by reason of the provisions of section 22 become disentitled to carry on banking business in India; or
(iii) has been prohibited from receiving fresh deposits by an order under clause (a) of sub-section (4) of section 35 or under clause (b) of sub-section (3A) of section 42 of the Reserve Bank of India Act, 1934 (2 of 1934.); or
(iv) having failed to comply with any requirement of this Act other than the requirements laid down in section 11, has continued such failure, or, having contravened any provision of this Act has continued such contravention beyond such period or periods as may be specified in that behalf by the Reserve Bank from time to time, after notice in writing of such failure or contravention has been conveyed to the banking company; or
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*Subs. by s. 26, ibid., for section 38 (w.e.f. 1- 10-1959)
(b) if in the opinion of the Reserve Bank-
(i) a compromise or arrangement sanctioned by a Court in respect of the banking company cannot be worked satisfactorily with or without modifications; or
(ii) the returns, statements or information furnished to it under or in pursuance of the provisions of this Act disclose that the banking company is unable to pay its debts; or
(iii) the continuance of the banking company is prejudicial to the interests of its depositors.
(4) Without prejudice to the provisions contained in section 434 of the Companies Act, 1956 (1 of 1956), a banking company shall be deemed to be unable to pay its debts if it has refused to meet any lawful demand made at any of its offices or branches within two working days, if such demand is made at a place where there is an office, branch or agency of the Reserve Bank, or within five working days, if such demand is made elsewhere, and if the Reserve Bank certifies in writing that the banking company is unable to pay its debts.
(5) A copy of
every application made by the Reserve Bank under sub-section (1) shall be
sent by the Reserve Bank to the registrar.
Section 31 Submission of returns
Section 32 Copies of balance-sheets and accounts to be sent to registrar
Section 33 Display of audited balance-sheet by companies incorporated outside India
Section 34 Accounting provisions of this Act not retrospective
Section 34A Protection of documents of confidential nature
Section 36 Further powers and functions of Reserve Bank
Section 36A Certain provisions of the Act not to apply to certain banking companies
Section 36AA Power of Reserve Bank to remove managerial and other persons from office
Section 3CA Supersession of Board of Directors in certain cases
Section 36AD Punishments for certain activities in relation to banking companies
Section 36AF Power of the Central Government to make scheme
Section 36AG Compensation to be given to shareholders of the acquired bank
Section 36AH Constitution of the Tribunal
Section 36AI Tribunal to have powers of a civil court Section 36AJ Procedure of the Tribunal
Section 36B High Court defined
Section 37 Suspension of business
Section 38 Winding up by High Court
Section 39 Reserve Bank to be official Liquidator