1[(1)] Notwithstanding anything contained in any law for the time being in force, no 2[High Court] shall sanction a compromise or arrangement between a banking company and its creditors or any class of them or between such company and its members or any class of them 3[or sanction any modification in any such compromise or arrangement unless the compromise or arrangement or modification, as the case may be,] is certified by the Reserve Bank 4[in writing as not being incapable of being worked and as not being detrimental to the interests of the depositors of such banking company].
5[(2) Where an application under 6[section 391 of the Companies Act, 1956 (1 of 1956)] is made in respect of a banking company, the High Court may direct the Reserve Bank to make an inquiry in relation to the affairs of the banking company and the conduct of its directors and when such a direction is given, the Reserve Bank shall make such inquiry and submit its report to the High Court.]
---------------
1. Section 44B re-numbered as sub-section (1) thereof by Act 52 of 1953, s. 9 (w.e.f. 30-12-1953)
2. Subs. by s. 4, ibid., for "Court" (w.e.f. 30-12-1953)
3. Subs. by Act 55 of 1963, s. 20, for "unless the compromise or arrangement" (w.e.f. 1-2-1964)
4. Subs. by Act 52 of 1953, s. 9, for "as not being detrimental to the interests of the depositors of such company" (w.e.f. 30-11-1953)
5. Ins. by s. 9, ibid. (w.e.f. 30-12-1953)
6. Subs. by Act 95 of 1956, s. 14 and the Schedule, for "section 153 of
the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 14-1-1957).
Section 41 Preliminary report by official liquidator
Section 41A Notice to preferential claimants and secured and unsecured creditors
Section 42 Power to dispense with meetings of creditors
Section 43 Booked depositors credits to be deemed proved
Section 43A Preferential payments to depositors
Section 44 Powers of High Court in voluntary winding up
Section 44A Procedure for amalgamation of banking companies
Section 44B Restriction on compromise or arrangement between banking company and creditors
Section 45A Part IIIA to override other laws
Section 45B Power of High Court to decide all claims in respect of banking companies
Section 45C Transfer of pending proceedings
Section 45D Settlement of list of debtors
Section 45E Special provisions to make calls on contributories
Section 45F Documents of banking company to be evidence
Section 45G Public examination of directors and auditors
Section 45H Special provisions for assessing damages against delinquent directors, etc