Section 45J of the Banking Regulation Act, 1949
Special provisions for punishing offences in relation to banking companies being wound up. Section 45J gives the High Court special powers to take cognizance of, summarily try, and otherwise deal with specified offences connected with the winding up of a banking company.
What Section 45J means
Section 45J creates a special High Court procedure for offences connected with a banking company in liquidation. It covers persons involved in the promotion or formation of the bank and its directors, managers and officers. The provision also permits connected offences to be tried together and relaxes certain ordinary procedural requirements for a summary trial.
Text of Section 45J
(1) The High Court may, if it thinks fit, take cognizance of and try in a summary way any offence alleged to have been committed by any person who has taken part in the promotion or formation of the banking company which is being wound up or by any director, manager or officer thereof:
Provided that the offence is one punishable under this Act or under the Companies Act, 1956 (1 of 1956).
(2) When trying any such offence as aforesaid, the High Court may also try any other offence not referred to in sub-section (1) which is an offence with which the accused may, under the Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial.
(3) In any case tried summarily under sub-section (1), the High Court -
(a) need not summon any witness, if it is satisfied that the evidence of such witness will not be material;
(b) shall not be bound to adjourn a trial for any purpose unless such adjournment is, in the opinion of the High Court, necessary in the interests of justice;
(c) shall, before passing any sentence, record judgment embodying the substance of the evidence and also the particulars specified in section 263 of the Code of Criminal Procedure, 1973 (2 of 1974), so far as that section may be applicable, and nothing contained in sub-section (2) of section 262 of that Code shall apply to any such trial.
(4) All offences in relation to winding up alleged to have been committed by any person specified in sub-section (1) which are punishable under this Act or under the Companies Act, 1956 (1 of 1956) and which are not tried in a summary way under sub-section (1) shall, notwithstanding anything to the contrary contained in that Act or the Code of Criminal Procedure, 1973 (2 of 1974), or in any other law for the time being in force, be taken cognizance of and tried by a Judge of the High Court other than the Judge for the time being dealing with the proceedings for the winding up of the banking company.
(5) Notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1973 (2 of 1974), the High Court may take cognizance of any offence under this section without the accused being committed to it for trial.
Legislative notes: References to the Code of Criminal Procedure, 1973 were substituted by Act 1 of 1984 with effect from 15 February 1984. The former words concerning trial without the aid of a jury were omitted by the same amendment. The statutory text continues to contain historical references to the Companies Act, 1956 and the Code of Criminal Procedure, 1973.
Key features of Section 45J
1. High Court can take cognizance directly
The section gives the High Court direct power to take cognizance of offences falling within the provision. Sub-section (5) expressly removes the need for a committal to the High Court before trial.
2. Summary trial is permitted
Where the High Court considers it appropriate, an offence covered by sub-section (1) may be tried summarily. The special procedure is intended to enable effective disposal of offences arising in the winding up of a banking company.
3. Connected offences may be tried together
Under sub-section (2), the High Court may also try another offence at the same trial where the applicable criminal procedure law permits the accused to be charged with that offence together with the Section 45J offence.
4. Special rules for witnesses and adjournments
In a summary trial, the High Court need not summon a witness whose evidence would not be material, and an adjournment need not be granted unless the Court considers it necessary in the interests of justice.
5. Non-summary offences remain with a High Court Judge
Where an offence covered by sub-section (4) is not tried summarily, it is still to be tried by a Judge of the High Court, but not by the Judge who is then handling the winding-up proceedings.
Current-law note
The official text of Section 45J continues to reproduce references to the Companies Act, 1956 and the Code of Criminal Procedure, 1973. The Companies Act, 2013 is now the principal central company law, and the Bharatiya Nagarik Suraksha Sanhita, 2023 came into force on 1 July 2024 as the current general criminal procedure code. For an actual proceeding, the effect of repeal, savings, transitional provisions and statutory construction should be checked before applying the historical cross-references in Section 45J.
Section 45K
Section 45K - Power of High Court to enforce schemes of arrangements, etc. was omitted by the Banking Companies (Amendment) Act, 1959 (33 of 1959), section 31, with effect from 1 October 1959.