Banking Regulation Act
Banking Regulation Act
III · Section 40

Stay of proceedings

Synced on 07 Jul 2026Text as per India Code

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.

Judgments on Section 40