Banking Regulation Act, 1949 — back to Table of Contents
Section 45D. Settlement of list of debtors
(1) Notwithstanding anything to the contrary in any other law, the High Court may settle, in the manner provided in this section, a list of debtors of a banking company being wound up.
(2) Subject to rules made under section 52, the official liquidator must, within six months of the winding-up order or the commencement of the Banking Companies (Amendment) Act, 1953, whichever is later, file with the High Court lists of debtors containing the particulars specified in the Fourth Schedule (such lists may, with leave of the Court, be filed after this period).
(3) On receiving a list, the High Court causes notices to be issued to affected persons and, after inquiry as prescribed by rules under section 45U, makes an order settling the list of debtors. The Court may settle the list in part as against those whose debts have been settled without settling every debtor’s claim at once.
(4) When settling the list, the High Court orders payment of the amount due by each debtor and passes any further orders needed regarding the relief claimed, including relief against guarantors or realisation of security.
(5) Every such order, subject to appeal, is final and binding between the banking company and the person against whom it is passed (and those claiming through or under them), and is deemed to be a decree in a suit.
(6) For every such order, the High Court issues a certificate specifying the reliefs granted, the parties against whom granted, and the costs awarded; the certificate is deemed a certified copy of the decree for all purposes including execution.
(7) At the time of settling the list, or before or after, the High Court may pass any order — on the official liquidator’s application — for the realisation, management, protection, preservation, or sale of property given as security to the banking company, and may give the liquidator powers to carry out such directions.
(8) The High Court may sanction a compromise regarding any debt and order payment by instalments.
(9) Where a list is settled ex parte against a person, that person may, within thirty days of the settlement order (or later, if the Court allows), apply to vary the list as it concerns them; if satisfied the person was prevented by sufficient cause from appearing and has a good defence on the merits, the High Court may vary the list accordingly.
(10) This section does not apply to a debt secured by mortgage of immovable property in which a third party has an interest, and does not prejudice the official liquidator’s rights to recover any debt under any other law.
Note: Part IIIA was inserted by the Banking Companies (Amendment) Act, 1953.
