Banking Regulation Act, 1949

Section 38A - Court Liquidator

Section 38A of the Banking Regulation Act, 1949 deals with the Court Liquidator for winding-up proceedings of banking companies before a High Court.

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Text of Section 38A of the Banking Regulation Act, 1949

38A. Court Liquidator.

(1) There shall be attached to every High Court a Court liquidator to be appointed by the Central Government for the purpose of conducting all proceedings for the winding up of banking companies and performing such other duties in reference thereto as the High Court may impose.

(2) and (3) Omitted.

(4) Where, having regard to the number of banking companies wound up and other circumstances of the case, the Central Government is of opinion that it is not necessary or expedient to attach for the time being a Court liquidator to a High Court, it may, from time to time, by notification in the Official Gazette, direct that this section shall not have effect in relation to that High Court.

Meaning and scope of Section 38A

Section 38A creates a special statutory arrangement for the liquidation of banking companies. The Court Liquidator is appointed by the Central Government and is intended to conduct winding-up proceedings of banking companies and discharge other connected duties assigned by the High Court.

Sub-section (4) gives the Central Government flexibility to suspend the operation of Section 38A in relation to a particular High Court when, considering the number of banking companies under winding up and other relevant circumstances, maintaining a Court Liquidator is considered unnecessary or inexpedient. Such a direction must be issued by notification in the Official Gazette.

Important: Section 38A should be read with the other winding-up provisions of the Banking Regulation Act, particularly Sections 38, 39 and 39A.

Legislative history

Section 38A was inserted by the Banking Companies (Amendment) Act, 1953 (Act 52 of 1953), Section 6, with effect from 30 December 1953.

Sub-sections (2) and (3) were later omitted by Act 95 of 1956, Section 14 and the Schedule, with effect from 14 January 1957. The presently relevant operative portions are therefore sub-sections (1) and (4).

Updated: 13 September 2026. This page is for general legal information and should be read with the latest official statutory text and applicable notifications.