Section 45U of the Banking Regulation Act, 1949: Power of High Court to Make Rules

Section 45U authorises the High Court to frame procedural rules, consistent with the Banking Regulation Act, 1949 and the rules made under Section 52, for specified matters arising under Part III and Part IIIA of the Act.

In brief: Section 45U is a rule-making provision. It enables the High Court to regulate how certain banking-company proceedings are conducted, which offences may be tried summarily, how appeals are filed and heard, and other procedural matters needed for the High Court to discharge its statutory functions.

Text and scope of Section 45U

Section 45U - Power of High Court to make rules.

The High Court may make rules consistent with the Act and the rules made under Section 52 prescribing:

(a) the manner in which inquiries and proceedings under Part III or Part IIIA may be held;

(b) the offences which may be tried summarily;

(c) the authority to which appeals may be preferred, the conditions governing such appeals, and the manner in which appeals may be filed and heard; and

(d) any other matter for which provision is required to enable the High Court to effectively exercise its functions under the Act.

What Section 45U means

The provision gives the High Court procedural rule-making authority within the framework of the Banking Regulation Act, 1949. The rules cannot be inconsistent with the Act itself or with rules validly made under Section 52 of the Act.

1. Rules for inquiries and proceedings

Clause (a) permits rules governing the manner in which inquiries and proceedings under Part III and Part IIIA are conducted. Part III deals with suspension of business and winding up of banking companies, while Part IIIA contains special provisions intended to facilitate speedy disposal of winding-up proceedings.

2. Summary trial of specified offences

Clause (b) allows the High Court rules to identify offences that may be tried summarily, subject to the Act and applicable procedural law.

3. Appeals

Clause (c) authorises procedural rules concerning the appellate authority, conditions for preferring an appeal, and the filing and hearing of appeals. This rule-making power operates alongside substantive appeal provisions in the Act, including Section 45N on appeals, where applicable.

4. Other procedural matters

Clause (d) is a residual procedural power. It enables rules on other matters needed for the High Court to effectively perform functions assigned to it by the Act, while remaining subject to the statutory limits in Section 45U.

Related provisions

Official source

For the current text of the Banking Regulation Act, 1949 and connected subordinate legislation, refer to the India Code page for the Banking Regulation Act, 1949. The Act is Act No. 10 of 1949 and was enacted on 10 March 1949.

Legal note: This page is intended as a concise statutory explanation. For court proceedings, always check the latest text of the Act, applicable High Court rules, amendments, notifications and binding judicial decisions relevant to the jurisdiction and facts of the case.