Section 40 — Stay of proceedings.

The Banking Regulation Act, 1949
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

Official Hindi (PDF) ↗

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