Section 35(10) in The State Bank Of India Act, 1955
(10)Simultaneously with the appointment of a suitable person to take over the management of any banking institution under sub-section (9) or immediately thereafter, the Central Government shall issue directions to be followed by that person in the management of that banking institution for the purposes aforesaid and thereupon-(a)the provisions of the Companies Act, 1956 (1 of 1956), or the Banking Regulation Act, 1949 (10 of 1949), or any other law for the time being in force or any instrument having effect by virtue of any such Act or law, insofar as they are inconsistent with such directions, shall cease to apply to or in relation to that banking institution;(b)all persons in charge of the management, including any person holding office as manager or director of the banking institution immediately before the issue of such directions, shall be deemed to have vacated their offices as such; and(c)the person appointed to take over the management of the banking institution shall in accordance with those directions take all such steps as may be necessary to facilitate the winding-up of its affairs and distribution of its assets.
