Sections 45V and 45W of the Banking Regulation Act, 1949

Section 45V clarifies that references in the relevant Part of the Act to specified functionaries of a banking company include both past and present holders of those offices. Section 45W provides that Part II does not apply to a banking company that is being wound up.

Section 45V: References to directors, etc., include past directors, etc.

Section 45V is a clarificatory provision. Its purpose is to remove doubt about whether statutory references to persons connected with the management, liquidation, administration or audit of a banking company are confined to current office-holders.

Statutory text For the removal of doubts it is hereby declared that any reference in this Part to a director, manager, liquidator, officer or auditor of a banking company shall be construed as including a reference to any past or present director, manager, liquidator, officer or auditor of the banking company.

Meaning and legal effect

The provision expressly covers a director, manager, liquidator, officer and auditor of a banking company.
A reference to any of those persons in the relevant Part is not restricted to a person currently holding office.
The expression is to be read as including both past and present holders of the specified office.
The section is declaratory in form and is intended to remove doubt about the scope of references used elsewhere in the Part.

Practical point: When another provision in this Part refers to a director, manager, liquidator, officer or auditor, Section 45V requires that reference to be read broadly enough to include a former holder of that position as well as a present holder.

Section 45W: Part II not to apply to banking companies being wound up

Section 45W states the consequence for a banking company that is already in the process of winding up.

Statutory text Nothing contained in Part II shall apply to a banking company which is being wound up.

Meaning and legal effect

The provision creates an express exclusion: once a banking company is being wound up, Part II of the Banking Regulation Act, 1949 does not apply to that banking company. The wording is categorical and is directed specifically to the operation of Part II.

Related provisions

Sections 45V and 45W appear among the special provisions of the Banking Regulation Act dealing with banking companies and winding-up related matters. For continuity, readers may also refer to the immediately preceding and succeeding provisions: