Section 38: Winding up by High Court.

Q: What does Section 38 of The Banking Regulation Act, 1949 (BR Act) deal with?

Section 38 BR Act pertains to "Winding up by High Court.". It is part of the The Banking Regulation Act, 1949, a legislation enacted by the Parliament of India. Section 38 of The Banking Regulation Act, 1949 (BR Act) governs winding up by High Court. As verified on 22 May 2026.

Q: Is Section 38 BR Act still in force?

Yes, Section 38 of the The Banking Regulation Act, 1949 is currently in force across the Republic of India.

Q: What is धारा 38 BR Act?

धारा 38 BR Act is the Devanagari Hindi reference for Section 38 of the The Banking Regulation Act, 1949. Section 38 of The Banking Regulation Act, 1949 (BR Act) governs winding up by High Court. As verified on 22 May 2026.

Q: What is Dhara 38 BR Act?

Dhara 38 BR Act is the Roman Hindi reference for Section 38 of the The Banking Regulation Act, 1949. "Dhara" means "Section" in Hindi. Section 38 of The Banking Regulation Act, 1949 (BR Act) governs winding up by High Court. As verified on 22 May 2026.

Q: How to cite Section 38 of The Banking Regulation Act, 1949?

Cite as: "Section 38, The Banking Regulation Act, 1949 (BR Act)" in legal briefs. For academic writing, use the BlueBook format: The Banking Regulation Act, 1949, 1949, § 38 (India).

Law on Tips Editorial Board

1[38. Winding up by High Court.—(1) Notwithstanding anything contained in section 391 section 392, section 433 and section 583 of the Companies Act, 1956 (1 of 1956), but without prejudice to its powers under sub-section (1) of section 37 of this Act, the High Court shall order the winding up of a banking company—

(2) The Reserve Bank shall make an application under this section for the winding up of a banking company if it is directed so to do by an order under clause (b) of sub-section (4) of section 35.

(3) The Reserve Bank may make an application under this section for the winding up of a banking company—

(4) Without prejudice to the provisions contained in section 434 of the Companies Act, 1956 (1 of 1956), a banking company shall be deemed to be unable to pay its debts if it has refused to meet any lawful demand made at any of its offices or branches within two working days, if such demand is made at a place where there is an office, branch or agency of the Reserve Bank, or within five working days, if such demand is made elsewhere, and if the Reserve Bank certifies in writing that the banking company is unable to pay its debts.

(5) A copy of every application made by the Reserve Bank under sub-section (1) shall be sent by the Reserve Bank to the registrar.]1. Subs. by s. 26, ibid., for section 38 (w.e.f. 1- 10-1959).