Section 45H of Banking Regulation Act - Special provisions for assessing damages against delinquent directors, etc

Section 45H of Banking Regulation Act 1949: Special provisions for assessing damages against delinquent directors, etc

(1) Where an application is made to the High Court under *[section 543 of the Companies Act, 1956 (1 of 1956)] against any promoter, director, manager, liquidator or officer of a banking company for repayment or restoration of any money or property and the applicant makes out a prima facie case against such person, the High Court shall make an order against such person to repay and restore the money or property unless he proves that he is not liable to make the repayment or restoration either wholly or in part:
Provided that where such an order is made jointly against two or more such persons, they shall be jointly and severally liable to make the repayment or restoration of the money or property.

 

(2) Where an application is made to the High Court under *[section 543 of the Companies Act, 1956 (1 of 1956)] and the High Court has reason to believe that a property belongs to any promoter, director, manager, liquidator or officer of the banking company, whether the property stands in the name of such person or any other person as an ostensible owner, then the High Court may, at any time, whether before or after making an order under sub-section (1), direct the attachment of such property, or such portion thereof, as it thinks fit and the property so attached shall remain subject to attachment unless the ostensible owner can prove to the satisfaction of the High Court that he is the real owner and the provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating to attachment of property shall, as far as may be, apply to such attachment.

-----------

Subs. by Act 95 of 1956, s. 14 and the Schedule, for "section 235 of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 14-1-1957).