Section 37: Defects in appointment not to invalidate acts, etc .-(1) No act or proceeding of the Board or of any Committee of the Small Industries Bank shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Board or the committee, as the case may be

Q: What does Section 37 of The Small Industries Development Bank of India Act, 1989 (SIDBI Act) deal with?

Section 37 SIDBI Act pertains to "Defects in appointment not to invalidate acts, etc .-(1) No act or proceeding of the Board or of any Committee of the Small Industries Bank shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Board or the committee, as the case may be". It is part of the The Small Industries Development Bank of India Act, 1989, a legislation enacted by the Parliament of India. Section 37 of The Small Industries Development Bank of India Act, 1989 (SIDBI Act) governs defects in appointment not to invalidate acts, etc .-(1) No act or proceeding of the Board or of any Committee of the Small Industries Bank shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Board or the committee, as the case may be. As verified on 19 May 2026.

Q: Is Section 37 SIDBI Act still in force?

Yes, Section 37 of the The Small Industries Development Bank of India Act, 1989 is currently in force across the Republic of India.

Q: What is धारा 37 SIDBI Act?

धारा 37 SIDBI Act is the Devanagari Hindi reference for Section 37 of the The Small Industries Development Bank of India Act, 1989. Section 37 of The Small Industries Development Bank of India Act, 1989 (SIDBI Act) governs defects in appointment not to invalidate acts, etc .-(1) No act or proceeding of the Board or of any Committee of the Small Industries Bank shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Board or the committee, as the case may be. As verified on 19 May 2026.

Q: What is Dhara 37 SIDBI Act?

Dhara 37 SIDBI Act is the Roman Hindi reference for Section 37 of the The Small Industries Development Bank of India Act, 1989. "Dhara" means "Section" in Hindi. Section 37 of The Small Industries Development Bank of India Act, 1989 (SIDBI Act) governs defects in appointment not to invalidate acts, etc .-(1) No act or proceeding of the Board or of any Committee of the Small Industries Bank shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Board or the committee, as the case may be. As verified on 19 May 2026.

Q: How to cite Section 37 of The Small Industries Development Bank of India Act, 1989?

Cite as: "Section 37, 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, § 37 (India).

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(2)

No act done by any person acting in good faith as a cirector shall be deemed to be invalid merely on the ground that he was disqualified to be a director or that there was any other defect in this appointment.

[37-A. Amounts and securities to be held in trust

.-(1) Any sums received by a borrowing institution in repayment or realisation of loans and advances refinanced either wholly or partly by the Small Industries Bank shall, to the extent of the accommodation granted by the Small Industries Bank and remaining outstanding, be deemed to have been received by the borrowing institution in trust for the Small Industries Bank, and shall accordingly be paid by such institution to the Small Industries Bank, as per the repayment schedule fixed by the Small Industries Bank.

(2)

Where an accommodation has been granted to a borrowing institution, all securities held, or which may be held, by such borrowing institution, on account of any transaction in respect of which such accommodation has been granted by the Small Industries Bank, shall be held by such institution in trust for the Small Industries Bank.]