In force · As amended up to 2026-08
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.
Source: India Code