¹[²[44B.] Restriction on compromise or arrangement between banking company and creditors.— ³[(1)] Notwithstanding anything contained in any law for the time being in force, no ⁴[High ⁴[High Court] shall sanction a compromise or arrangement between a banking company and its creditors or any class of them or between such company and its members or any class of them ⁵[or sanction any modification in any such compromise or arrangement unless the compromise or arrangement or modification, as the case may be,] is certified by the Reserve Bank ⁶[in writing as not being incapable of being worked and as not being detrimental to the interests of the depositors of such banking company].]

⁷[(2) Where an application under ⁸[section 391 of the Companies Act, 1956 (1 of 1956)] is made in respect of a banking company, the High Court may direct the Reserve Bank to make an inquiry in relation to the affairs of the banking company and the conduct of its directors and when such a direction is given, the Reserve Bank shall make such inquiry and submit its report to the High Court.]

1. Subs. by Act 20 of 1950, s. 9, for section 45 (w.e.f. 18-3-1950).
2. Section 45 renumbered as section 44B by Act 37 of 1960, s. 6 (w.e.f.19-9-1960).
3. Section 44B re-numbered as sub-section (1) thereof by Act 52 of 1953, s. 9 (w.e.f. 30-12-1953).
4. Subs. by s. 4, ibid., for "Court " (w.e.f. 30-12-1953).
5. Subs. by Act 55 of 1963, s. 20, for "unless the compromise or arrangement " (w.e.f. 1-2-1964).
6. Subs. by Act 52 of 1953, s. 9, for "as not being detrimental to the interests of the depositors of such company " (w.e.f. 30-11-1953).
7. Ins. by s. 9, ibid. (w.e.f. 30-12-1953).
8. Subs. by Act 95 of 1956, s. 14 and the Schedule, for "section 153 of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 14-1-1957)