Banking Regulation Act, 1949 · Chapter III: Suspension of Business and Winding Up of Banking Companies
Section 40: 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
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 40
No Supreme Court judgment in our database cites this section yet.