Banking Regulation Act : Stay of proceedings. Indian Bare Acts :

Banking Regulation Act,1949

Act No : 10

Section : Stay of proceedings.

40. Stay of proceedings.- Notwithstanding anything to the contrary contained in 2*[section 466 of the Companies Act, 1956 (1 of 1956)] the 3*[High Court] shall not make any order staying the proceedings in relation to the winding up of a banking company, unless the 3*[High Court] is satisfied that an arrangement has been made whereby the company can pay its depositors in full as their claims accrue.