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Union of India - Section

Section 40 in Banking Companies Act, 1949

40. Stay of proceedings

Notwithstanding anything to the contrary contained in section 173 of the Indian Companies Act, 1913, the {Subs., ibid., s.4, for ” Court “.} [High Court] shall not make any order staying the proceedings in relation to the winding up of a banking company, unless the {Subs., ibid., s.4, for ” Court “.} [High Court] is satisfied that an arrangement has been made whereby the company can pay its depositors in full as their claims accrue.