Application of other laws not barred
Section 2 of the Banking Regulation Act, 1949 deals with application of other laws not barred. The provisions of this Act shall be in addition to, and not, save as hereinafter expressly provided, in derogation of the [Companies Act, 1956 (1 of 1956)], any other law for the time being in force. The Act came into force on 16 Mar 1949.
The provisions of this Act shall be in addition to, and not, save as hereinafter expressly provided, in derogation of the 1[Companies Act, 1956 (1 of 1956)], any other law for the time being in force.
Section 2, The Banking Regulation Act, 1949 (Act 10 of 1949).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Rajesh Sanghani and Brothers vs The Yavatmal Urban Cooperative Bank Limited
Court's Decision & Legal Precedent
Cooperative banks registered under State legislation and multiState cooperative societies registered under the MSCS Act, 2002 are engaged in banking business which falls within Entry 45 of List I of the Seventh Schedule of the Constitution of India. Therefore: (1) Cooperative banks are 'banking companies' within the definition of Section 5(c) of the Banking Regulation Act, 1949 as incorporated by Section 56(a) thereof; (2) Cooperative banks are 'banks' under Section 2(1)(c) of the SARFAESI Act, 2002; (3) The notification dated 28.1.2003 and Section 2(1)(c)(iva) of SARFAESI Act added in 2013 are constitutionally valid exercises of Parliament's legislative competence under Entry 45; (4) The Parliament has competence to provide recovery procedures under Section 13 of SARFAESI Act for cooperative banks, and such procedures are an integral part of regulating banking activity; (5) Cooperative banks' organizational aspects (incorporation, management, winding up) remain subject to State regulation under Entry 32 of List II, while their banking activities are subject to Union regulation under Entry 45 of List I, representing permissible dual regulation under the aspects doctrine.
On this section: The court examined whether cooperative banks are within the definition of 'banking company' and how the provisions apply to cooperative banks through Section 56(a)
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Wellbert Pharmaceutical (bombay) Pvt. LTD vs Union of India
Court's Decision & Legal Precedent
Banking activity of cooperative banks, whether at state or multiState level, falls within Entry 45 of List I of the Seventh Schedule of the Constitution, making such cooperative banks subject to central banking legislation including SARFAESI Act. The expression 'banking company' in Section 5(c) of the Banking Regulation Act 1949, read with Section 56(a), includes cooperative banks performing banking functions. Parliament has constitutional competence to legislate on recovery procedures for cooperative banks as recovery is essential and integral to banking activity. Section 2(1)(c)(iva) of SARFAESI Act and the notification of 28.1.2003 are constitutionally valid. Cooperative banks remain subject to state law regarding incorporation, regulation and winding up (Entry 32 List II) while their banking activity is regulated by central law (Entry 45 List I).
On this section: Definition of banking, banking company, cooperative bank; application of provisions to cooperative banks through Section 56 modifications; extent of Parliamentary competence to regulate banking business
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Kamal Hospitality Pvt. Ltd. Director vs Union of India Ministry of Finance Secretary
Court's Decision & Legal Precedent
Cooperative banks, whether registered under State Cooperative Laws or the MultiState Cooperative Societies Act, when engaged in banking activity, are governed by legislation relatable to Entry 45 of List I of the Seventh Schedule of the Constitution of India. The activity of banking performed by cooperative banks falls within Entry 45 scope regardless of their status as cooperative societies. Accordingly, cooperative banks are covered within the definition of banking company under Section 5(c) Banking Regulation Act read with Section 56(a), and are subject to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Recovery procedures under Section 13 SARFAESI Act are applicable to cooperative banks. Parliament has legislative competence under Entry 45 to extend SARFAESI Act recovery provisions to cooperative banks. The notification of 28.1.2003 and Section 2(1)(c)(iva) inserted in 2013 are constitutionally valid and not ultra vires.
On this section: Definition of banking and banking company; application to cooperative banks through Section 56 modifications
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Lakshmi Business Center vs Union of India
Court's Decision & Legal Precedent
Cooperative banks engaged in banking business fall within the regulatory ambit of Entry 45 (Banking) of List I of the Seventh Schedule of the Constitution of India. Banking is an activity that cooperative banks perform through accepting deposits and lending money. While cooperative banks remain cooperative societies governed by Entry 32 List II for matters of incorporation, regulation, and winding up, the banking activity they undertake is subject to central legislation under Entry 45. Parliament has legislative competence to extend provisions of the Banking Regulation Act, 1949 and the SARFAESI Act to cooperative banks. Recovery of debts is an essential function of banking and falls within Entry 45 competence. The notification dated 28.1.2003 and Section 2(1)(c)(iva) of SARFAESI Act are constitutionally valid and do not encroach on State jurisdiction. Section 56(a) of BR Act, 1949 effectively incorporates cooperative banks within the definition of 'banking company' for purposes of all central banking legislation.
On this section: Incorporation of cooperative banks into regulatory framework; definition of banking and banking company; modification of provisions for cooperative banks
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Icici Bank Limited vs Officl. Liquir. of Aps Star Indus. Ld
Court's Decision & Legal Precedent
Inter se transfer of Non-Performing Assets by banks is a legitimate and legally permissible business activity under the Banking Regulation Act, 1949. Such transfers fall within the scope of banking business as defined by Section 6(1) read with Section 6(1)(n) of the BR Act 1949, are authorized by RBI Guidelines dated July 13, 2005 which have statutory force under Sections 21 and 35A of BR Act, and do not constitute prohibited 'trading in debts' under Section 8 of the Act. Assignment of account receivables with underlying security by one bank to another bank, without assignment of the assignor bank's obligations to the borrower, is legally valid and permissible, and the assignee bank is entitled to be substituted as secured creditor in proceedings relating to companies in liquidation.
On this section: Applied to establish that BR Act provisions are in addition to, and not in derogation of, Companies Act 1956 or any other law for the time being in force. Used to determine interaction between BR Act and Transfer of Property Act.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 2
What have the courts held on Section 2 of the Banking Regulation Act?
Rajesh Sanghani and Brothers vs The Yavatmal Urban Cooperative Bank Limited (05 May 2020) is the leading judgment on this section among those set out below: The court examined whether cooperative banks are within the definition of 'banking company' and how the provisions apply to cooperative banks through Section 56(a). Another 4 judgments on this section are set out below, all of them from the Supreme Court. They run from 2010 to 2020.
How do I find court cases under Section 2 of the Banking Regulation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Banking Regulation Act 1949 2, section 2 Banking Regulation Act 1949, section 2 of the Banking Regulation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 5 reported judgments on this section are set out on this page, beginning with Rajesh Sanghani and Brothers vs The Yavatmal Urban Cooperative Bank Limited (05 May 2020).
What should I read with Section 2 of the Banking Regulation Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 2 of the Banking Regulation Act come into force?
Section 2 of the Banking Regulation Act, cited as Banking Regulation Act 1949 2, came into force on 16 Mar 1949, having been enacted on 10 Mar 1949. It is in force as at the date shown on this page.
Other sections of this Act
- 56. Act to apply to co-operative societies subject to modifications5544 words
- 45. Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation2310 words
- 10B. Banking company to be managed by whole time chairman1171 words
- 5. Interpretation1164 words
- 43A. Preferential payments to depositors1031 words
- 11. Requirement as to minimum paid-up capital and reserves988 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.