law: Banking Regulation Act, 1949
  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-
  (a) if the banking
  
  company is unable to pay its debts; or
  (b) if an application
  
  for its winding up has been made by the Reserve Bank under section 37 or this
  
  section.
  (2) The Reserve Bank shall make an application
  
  under this section for the winding up of a banking company 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-
  (a) if the banking
  
  company-
  (i) has failed to
  
  comply with the requirements specified in section 11; or
  (ii) has by reason of
  
  the provisions of section 22become disentitled to carry on banking business in India ; or
  (iii) has been
  
  prohibited from receiving fresh deposits by an order under clause (a) of
  
  sub-section (4) of section 35 or under clause (b) of sub-section (3A) or
  
  section 42 of the Reserve Bank of India, Act, 1934 (2 of 1934); or
  (iv) having failed to
  
  comply with any requirement of this Act other than the requirements laid down
  
  in section 11, has continued such failure, or, having contravened any provision
  
  of this Act has continued such contravention beyond such period or periods as
  
  may be specified in that behalf by the Reserve Bank from time to time, after
  
  notice in writing of such failure or contravention has been conveyed to the
  
  banking company; or
  (b) if in the opinion
  
  of the Reserve Bank-
  (i) a compromise or
  
  arrangement. Sanctioned by a court in respect of the banking company cannot be
  
  worked satisfactorily with or without modifications; or
  (ii) the returns,
  
  statements or information furnished to it under or in pursuance of the provisions
  
  of this Act disclose that the banking company is unable to pay its debts; or
  (iii) the continuance
  
  of the banking company is prejudicial to the interest of its depositors.
  (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.]