# The Banking Regulation Act, 1949, Section 40: Stay of proceedings

- Act: The Banking Regulation Act, 1949 (Act 10 of 1949)
- In force from: 1949-03-16
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/banking-regulation-act-1949/section/40/

## Text

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

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