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
Amendment notes (2)
- Subs w.e.f. 14-1-1957 . Subs. by Act 95 of 1956, s. 14 and Schedule, for "section 173 of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 14-1-1957).
- Subs w.e.f. 30-12-1953 . Subs. by Act 52 of 1953, s. 4, for "Court" (w.e.f. 30-12-1953).