Section 40 of Banking Regulation Act - Stay of proceedings

Section 40 of Banking Regulation Act 1949: Stay of proceedings

Notwithstanding anything to the contrary contained in *[section 466 of the Companies Act, 1956 (1 of 1956)], the **[High Court] shall not make any order staying the proceedings in relation to the winding up of a banking company, unless the **[High Court] is satisfied that an arrangement has been made whereby the company can pay its depositors in full as their claims accrue.

 

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*Subs. by Act 95 of 1956, s. 14 and Schedule, for "section 173 of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 14-1-1957).

**Subs. by Act 52 of 1953, s. 4, for "Court" (w.e.f. 30-12-1953)