Section 40 of The Banking Regulation Act, 1949: Stay of proceedings.

Section 40 of The Banking Regulation Act, 1949: Stay of proceedings.

Stay of proceedings. – Notwithstanding anything to the contrary contained in [section 466 of the Companies Act, 1956 (1 of 1956)], the [High Court] shall not make any order staying the proceedings in relation to the winding up of a banking company, unless the [High Court] is satisfied that an arrangement has been made whereby the company can pay its depositors in full as their claims accrue.

 

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