Section 47 SIDBI Act (The Small Industries Development Bank of India Act, 1989): Arrangement with Small Industries Bank on appointment of directors to prevail .-(1) Where any arrangement entered into by the Small Industries Bank with an industrial concern in the small-scale sector provides for the appointment by the Small Industries Bank of one or more directors of such industrial concern, such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to that industrial concern, and any provision regarding share qualification, age-limit, number of Directorship, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Small Industries Bank in pursuance of the arrangement as aforesaid | Law on Tips

Q: Is Section 47 SIDBI Act still in force?

Yes, Section 47 of the The Small Industries Development Bank of India Act, 1989 is currently in force across the Republic of India.

Q: What is धारा 47 SIDBI Act?

धारा 47 SIDBI Act is the Devanagari Hindi reference for Section 47 of the The Small Industries Development Bank of India Act, 1989. Section 47 of The Small Industries Development Bank of India Act, 1989 (SIDBI Act) prohibits arrangement with Small Industries Bank on appointment of directors to prevail .-(1) Where any arrangement entered into by the Small Industries Bank with an industrial concern in the small-scale sector provides for the appointment by the Small Industries Bank of one or more directors of such industrial concern, such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to that industrial concern, and any provision regarding share qualification, age-limit, number of Directorship, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Small Industries Bank in pursuance of the arrangement as aforesaid. As verified on 19 May 2026.

Q: What is Dhara 47 SIDBI Act?

Dhara 47 SIDBI Act is the Roman Hindi reference for Section 47 of the The Small Industries Development Bank of India Act, 1989. "Dhara" means "Section" in Hindi. Section 47 of The Small Industries Development Bank of India Act, 1989 (SIDBI Act) prohibits arrangement with Small Industries Bank on appointment of directors to prevail .-(1) Where any arrangement entered into by the Small Industries Bank with an industrial concern in the small-scale sector provides for the appointment by the Small Industries Bank of one or more directors of such industrial concern, such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to that industrial concern, and any provision regarding share qualification, age-limit, number of Directorship, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Small Industries Bank in pursuance of the arrangement as aforesaid. As verified on 19 May 2026.

Q: How to cite Section 47 of The Small Industries Development Bank of India Act, 1989?

Cite as: "Section 47, The Small Industries Development Bank of India Act, 1989 (SIDBI Act)" in legal briefs. For academic writing, use the BlueBook format: The Small Industries Development Bank of India Act, 1989, § 47 (India).

§44

Indemnity of directors .-(1) Every Director shall be indemnified by the Small Industries Bank against all losses and expenses incurred by him in, or in relation to, the discharge of his duties, except such as are caused by his own wilful act or default

SIDBI Act

§52

Power to make regulations .-(1) The Board may, [* * *] by notification, make regulations not inconsistent with the provisions of this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act

SIDBI Act

§46

Nomination by depositors or holders of bonds or other securities .-(1) Notwithstanding anything contained in any other law, where a nomination in respect of any deposits, bonds or other securities kept with or issued by the Small Industries Bank is made in the prescribed manner, the amount due on such deposits, bonds or other securities shall, on the death of the depositor or holder thereof, vest in, and be payable to, the nominee subject to any right, title, interest or claim of any other person, in relation to such deposits, bonds or other securities

SIDBI Act

§36

Obligations as to fidelity and secrecy .-(1) The Small Industries Bank shall not, except as otherwise required by this Act or any other law, divulge any information relating to, or to the affairs of, its constituents except in circumstances in which it is, in accordance with the law or practice and usage customary among bankers necessary or appropriate for the Small Industries Bank to divulge such information

SIDBI Act

§38

Rights of Small Industries Bank in case of default .-(1) Where any industrial concern in the small-scale sector, which is under a liability to the Small Industries Bank under an agreement, makes any default in repayment of any loan or advance or any instalment thereof or in meeting its obligations in relation to any guarantee given by the Small Industries Bank or otherwise fails to comply with the terms of its agreement, with the Small Industries Bank, the Small Industries Bank shall have the right to take over the management, or possession, or both of such industrial concern in the small-scale sector, as well as the right to transfer by way of lease or sale and realise the property pledged, mortgaged, hypothecated or assigned to the Small Industries Bank

SIDBI Act

§39

Power to seek assistance of Chief Metropolitan Magistrate or District Magistrate .-(1) Where any property, effects or actionable claims are sold or leased in pursuance of any power conferred by section 38, the Small Industries Bank or any other person authorised by it may, for the purpose of taking into custody or under control any such property, effects or actionable claims, request, in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction any such property, effects, actionable claims, books of account or other documents relating thereto may be situated or found, to take possession thereof, and the Chief Metropolitan Magistrate or the District Magistrate shall, on such request being made to him,

SIDBI Act