Banking Regulation Act, 1949 — back to Table of Contents
Section 45H. Special provisions for assessing damages against delinquent directors, etc.
(1) Where an application is made to the High Court under section 543 of the Companies Act, 1956 against any promoter, director, manager, liquidator, or officer of a banking company for repayment or restoration of money or property, and the applicant makes out a prima facie case, the High Court makes an order for repayment or restoration unless that person proves they are not liable, wholly or in part. Where such an order is made jointly against two or more persons, they are jointly and severally liable.
(2) Where such an application is made and the High Court has reason to believe that property belongs to a promoter, director, manager, liquidator, or officer of the banking company — whether the property stands in that person’s name or in the name of another as an ostensible owner — the Court may, before or after making an order under sub-section (1), direct the attachment of that property or any part of it. The property remains subject to attachment unless the ostensible owner proves to the Court’s satisfaction that they are the real owner. The Code of Civil Procedure, 1908 provisions on attachment of property apply, so far as they can, to such attachment.
Note: Part IIIA was inserted by the Banking Companies (Amendment) Act, 1953.
