Section 45C of the Banking Regulation Act, 1949 - Transfer of Pending Proceedings

Section 45C forms part of the special winding-up framework for banking companies. It regulates how certain civil or criminal proceedings already pending in other courts are dealt with after a winding-up order is made and gives the High Court power to transfer specified proceedings to itself.

In simple terms: where a banking company is being wound up, covered proceedings pending in another court cannot simply continue as before. The official liquidator must report them to the High Court, and the High Court may transfer all or selected proceedings to itself. Appeals already pending before the Supreme Court or a High Court are excluded from Section 45C.

Statutory text of Section 45C

45C. Transfer of pending proceedings.

(1) Where a winding up order is made or has been made in respect of a banking company, no suit or other legal proceeding, whether civil or criminal, in respect of which the High Court has jurisdiction under this Act and which is pending in any other court immediately before the commencement of the Banking Companies (Amendment) Act, 1953 (52 of 1953), or the date of the order for the winding up of the banking company, whichever is later, shall be proceeded with except in the manner hereinafter provided.

(2) The official liquidator shall, within three months from the date of the winding up order or the commencement of the Banking Companies (Amendment) Act, 1953 (52 of 1953), whichever is later, or such further time as the High Court may allow, submit to the High Court a report containing a list of all such pending proceedings together with particulars thereof.

(3) On receipt of a report under sub-section (2), the High Court may, if it so thinks fit, give the parties concerned an opportunity to show cause why the proceedings should not be transferred to itself and after making an inquiry in such manner as may be provided by rules made under section 45U, it shall make such order as it deems fit transferring to itself all or such of the pending proceedings as may be specified in the order and such proceedings shall thereafter be disposed of by the High Court.

(4) If any proceeding pending in a court is not so transferred to the High Court under sub-section (3), such proceeding shall be continued in the court in which the proceeding was pending.

(5) Nothing in this section shall apply to any proceeding pending in appeal before the Supreme Court or a High Court.

How Section 45C works

Trigger: a winding-up order has been made in respect of a banking company.
Proceedings covered: a suit or other legal proceeding, civil or criminal, falling within the High Court's jurisdiction under the Banking Regulation Act and pending in another court.
Official liquidator's duty: submit a report listing the pending proceedings, ordinarily within three months, subject to further time allowed by the High Court.
High Court's role: after considering the report and, where appropriate, hearing affected parties, the High Court may transfer all or selected proceedings to itself.
Proceedings not transferred: they continue in the court where they were already pending.
Express exception: Section 45C does not apply to an appeal already pending before the Supreme Court or a High Court.

Related provisions

Section 45A - Part IIIA to override other laws

Section 45A gives overriding effect to Part IIIA where its provisions are inconsistent with certain other laws or instruments. It is relevant because Section 45C operates within this special statutory scheme for banking companies in winding up.

Section 45B - High Court jurisdiction

Section 45B gives the High Court exclusive jurisdiction over specified claims and questions relating to a banking company that is being wound up, subject to the express operation of Section 45C.

Section 45U - Rule-making power for procedure

Section 45C(3) refers to an inquiry in the manner provided by rules made under Section 45U. This connects the transfer process with procedural rules governing the High Court's exercise of functions under the special winding-up provisions.

Practical legal effect

The section is designed to coordinate litigation connected with a banking company in winding up. It prevents covered proceedings in subordinate or other courts from moving ahead without the statutory process and enables the High Court supervising the winding up to decide whether centralised adjudication is appropriate.

For the current official text of the Banking Regulation Act, 1949, readers should verify the provision on India Code and consult applicable rules, notifications and judicial decisions where a live dispute is involved.

Last reviewed: 13 September 2026.