Aap Tax Law

Banking Regulation Act, 1949

Section 45T - Enforcement of Orders and Decisions of High Court

Section 45T of the Banking Regulation Act, 1949 provides special mechanisms for enforcing orders, decisions and decrees connected with the winding up of a banking company. It enables enforcement through ordinary High Court execution, execution before another court on the liquidator's certificate, and recovery of amounts as arrears of land revenue with the leave of the High Court.

Contents

Text of Section 45T

(1) All orders made in any civil proceeding by a High Court may be enforced in the same manner in which decrees of such court made in any suit pending therein may be enforced.

(2) Notwithstanding anything to the contrary contained in the Code of Civil Procedure, 1908 (5 of 1908), a liquidator may apply for the execution of a decree by a court other than the one which made it on production of a certificate granted under sub-section (6) of section 45D and on his certifying to such other court in writing the amount remaining due or relief remaining unenforced under the decree.

(3) Without prejudice to the provisions of sub-section (1) or sub-section (2), any amount found due to the banking company by an order or decision of the High Court may, with the leave of the High Court, be recovered by the liquidator in the same manner as an arrear of land revenue and for the purpose of such recovery the liquidator may forward to the Collector within whose jurisdiction the property of the person against whom any order or decision of the High Court has been made is situate, a certificate under his signature specifying the amount so due and the person by whom it is payable.

(4) On receipt of a certificate under sub-section (3), the Collector shall proceed to recover from such person the amount specified therein as if it were an arrear of land revenue:

Provided that without prejudice to any other powers of the Collector, he shall, for the purposes of recovering the said amount, have all the powers which, under the Code of Civil Procedure, 1908 (5 of 1908), a civil court has for the purpose of the recovery of an amount due under a decree.

Amendment note: The words concerning recovery through the liquidator and the Collector in sub-section (3), and sub-section (4), reflect the amendment introduced with effect from 1 February 1964.

Meaning and Effect of Section 45T

1. High Court orders are executable like decrees

Sub-section (1) places civil orders made by the High Court on an execution footing similar to decrees passed by that court in a suit. The provision therefore avoids a separate enforcement mechanism where the High Court has already made an executable civil order in the course of banking-company winding-up proceedings.

2. Liquidator can seek execution before another court

Sub-section (2) begins with a non-obstante clause overriding contrary provisions of the Code of Civil Procedure, 1908. A liquidator may seek execution from a court other than the court which passed the decree by producing the certificate contemplated by section 45D(6) and certifying the amount or relief that still remains unenforced.

3. Recovery as arrears of land revenue

Under sub-section (3), an amount found due to the banking company under an order or decision of the High Court may, with the High Court's leave, be recovered by the liquidator as an arrear of land revenue. The liquidator may send a signed certificate to the Collector having jurisdiction over the property of the person liable to pay.

4. Collector's recovery powers

Sub-section (4) requires the Collector, on receiving the certificate, to recover the specified amount as an arrear of land revenue. The proviso further gives the Collector, for this purpose, the powers that a civil court has under the Code of Civil Procedure, 1908 for recovery of an amount due under a decree.

Section 45T operates within the special provisions dealing with winding up and related proceedings concerning banking companies. Section 45D is particularly relevant because sub-section (2) of Section 45T refers to the certificate granted under section 45D(6).

Readers may also refer to the surrounding provisions: Section 45O - Special period of limitation, Section 45P - Reserve Bank to tender advice in winding-up proceedings, Section 45S - Assistance to official liquidator, and Section 45U - Power of High Court to make rules.

Official Legal Resources

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