# 40 Stay of proceedings
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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1. Subs. by Act 95 of 1956, s. 14 and Schedule, for "section 173 of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 14-1-1957).
2. Subs. by Act 52 of 1953, s. 4, for "Court" (w.e.f. 30-12-1953).
SUSPENSION OF BUSINESS AND WINDING UP OF BANKING COMPANIES
38
Winding up by High Court38A
Court liquidator39
Reserve Bank to be official liquidator39A
Application of Companies Act to liquidators41
Preliminary report by official liquidator41A
Notice to preferential claimants and secured and unsecured creditors42
Power to dispense with meetings of creditors, etc
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