Home > Banking Regulation Act, 1949 > Section 45I

Section 45I of the Banking Regulation Act, 1949: Duty of Directors and Officers to Assist in Realisation of Property

Section 45I forms part of the special provisions dealing with the winding up of banking companies. It places a direct statutory duty on every director and other officer of a banking company that is being wound up to give the official liquidator such reasonable assistance as is required for realisation and distribution of the company's property.

Text of Section 45I

45I. Duty of directors and officers of banking company to assist in the realisation of property. Every director or other officer of a banking company which is being wound up shall give such assistance to the official liquidator as he may reasonably require in connection with the realisation and distribution of the property of the banking company.

What Section 45I Means

The provision applies when a banking company is in the course of winding up. Its purpose is to ensure that the official liquidator can obtain practical cooperation from persons who managed or served the banking company and who may possess information, records, knowledge, or access relevant to the company's assets and liabilities.

The duty is not framed as an optional courtesy. A director or other officer must provide the assistance that the official liquidator may reasonably require in connection with two linked functions: the realisation of the banking company's property and the distribution of that property in the winding-up process.

Key Elements of Section 45I

  • Who is covered: every director or other officer of the banking company.
  • When it applies: when the banking company is being wound up.
  • Who receives the assistance: the official liquidator.
  • Standard of assistance: such assistance as the official liquidator may reasonably require.
  • Purpose: realisation and distribution of the property of the banking company.

Meaning of "Realisation and Distribution of Property"

In the winding-up context, realisation of property generally refers to identifying, securing, recovering, collecting, or converting the banking company's assets into a form in which they can be administered by the liquidator. Distribution refers to applying or paying out the realised estate in accordance with the governing winding-up framework and lawful priorities.

Section 45I is therefore an operational cooperation provision. It supports the official liquidator in carrying out the winding-up process efficiently by requiring the company's directors and officers to assist with matters connected to the bank's property.

Relationship with Part IIIA of the Banking Regulation Act

Section 45I appears in Part IIIA of the Banking Regulation Act, 1949, which contains special provisions for the speedy disposal of winding-up proceedings involving banking companies. The surrounding provisions deal with matters such as claims, pending proceedings, debtors, calls on contributories, documentary evidence, public examination, recovery of property, offences, limitation, and assistance to the official liquidator.

Important Distinction: Banking Regulation Act Section 45I and RBI Act Section 45I

Section 45I of the Banking Regulation Act, 1949 concerns the duty of directors and officers of a banking company in winding up. It should not be confused with Section 45I of the Reserve Bank of India Act, 1934, which contains definitions for the chapter dealing with non-banking institutions and financial institutions.

Official Sources

For the current statutory text and official reference material, see the Department of Financial Services - Banking Regulation Act, 1949. Users may also consult the India Code portal for Central legislation.

Page reviewed for statutory accuracy: 13 September 2026.