Section 40
Stay of proceedings.
The Banking Regulation Act, 1949
About this Act
An Act to consolidate and amend the law relating to banking.
Notwithstanding anything to the contrary contained in 1[section 466 of
the Companies Act, 1956 (1 of 1956)], the 2[High Court] shall not make any order staying the
proceedings in relation to the winding up of a banking company, unless the 2[High Court] is satisfied
that an arrangement has been made whereby the company can pay its depositors in full as their claims
accrue
Notes
1. Subs. by Act 95 of 1956, s. 14 and Schedule, for "section 173 of the Indian Companies Act, 1913 (7 of 1913)"
(w.e.f. 14-1-1957).
2. Subs. by Act 52 of 1953, s. 4, for "Court" (w.e.f. 30-12-1953).
2. Subs. by Act 52 of 1953, s. 4, for "Court" (w.e.f. 30-12-1953).