Section 51: State Bank to be official liquidator

1[51. State Bank to be official liquidator.__ "(1) Notwithstanding anything contained in section 50, or in the Companies Act, 2017 (XIX of 2017), where the High Court has ordered the winding up of a banking company under section 49, the State Bank may apply for an order appointing the State Bank or any individual as the official liquidator of the banking company in that proceeding, and the High Court shall grant the application for appointing the State Bank or such person as specified by the State Bank as liquidator. Where a person specified by the State Bank is appointed as liquidator, the remuneration of such liquidator shall be determined by the State Bank. (2) Further, the High Court, on an application made by the State Bank for appointment of official liquidator, shall appoint such person as liquidator as specified by the State Bank in its application either to fill a vacancy, or to dismiss and replace a liquidator appointed under sub-section (1). (3) Subject to an order of the High Court, a liquidator appointed under sub-section (1) or sub- section (2) shall carry out its functions under the direction and supervision of the State Bank. (4) Further, any liquidator appointed under sub-section (1) and sub- section (2), shall have the power to transfer the assets and liabilities of the banking company to protect the interest of depositors or maximize the value for all creditors as a whole.]

Effective date: 1962-06-07

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