Central Act

40

Section 40. Stay of proceedings.

The Banking Regulation Act, 1949

In forceAll India (Central Act)

40. Stay of proceedings. 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