Banking Regulation Act, 1949
Section 45N of the Banking Regulation Act, 1949 - Appeals
Section 45N forms part of Part IIIA of the Banking Regulation Act, 1949. It deals with appeals from certain orders or decisions of the High Court in proceedings under the Act and also provides for finality of High Court decisions where no appeal is available under the section.
In brief: Section 45N creates a statutory appellate route in specified cases. It must be read together with the surrounding provisions of Part IIIA, particularly Section 45J where relevant.
Text of Section 45N - Appeals
(1) An appeal shall lie from any order or decision of the High Court in a civil proceeding under this Act when the amount or value of the subject-matter of the claim exceeds five thousand rupees.
(2) The High Court may by rules provide for an appeal against any order made under section 45J and the conditions subject to which any such appeal would lie.
(3) Subject to the provisions of sub-section (1) and sub-section (2) and notwithstanding anything contained in any other law for the time being in force, every order or decision of the High Court shall be final and binding for all purposes as between the banking company on the one hand, and all persons who are parties thereto and all persons claiming through or under them or any of them, on the other hand.
Note: The monetary figure appearing in sub-section (1) is reproduced from the current text of Section 45N available in the official India Code version of the Banking Regulation Act, 1949.
Meaning and scope of Section 45N
Section 45N is an appeal and finality provision. It identifies circumstances in which an appeal can be maintained from a High Court order or decision in proceedings governed by the Banking Regulation Act, 1949. At the same time, it restricts further challenge by declaring other High Court orders or decisions final and binding between the banking company and the parties covered by the provision.
Because Section 45N appears in Part IIIA, titled "Special Provisions for Speedy Disposal of Winding Up Proceedings", its operation should be understood in the context of the special statutory framework dealing with banking companies, winding up proceedings and related High Court powers.
Sub-section (1): appeal in civil proceedings
Sub-section (1) states that an appeal lies from an order or decision of the High Court in a civil proceeding under the Act when the amount or value of the subject-matter of the claim exceeds the statutory threshold of five thousand rupees.
The provision therefore links the right of appeal to both the nature of the proceeding and the value of its subject-matter. The right is statutory and should be examined with the applicable procedural law and any relevant High Court rules.
Sub-section (2): appeal from an order under Section 45J
Sub-section (2) authorises the High Court to make rules providing for an appeal against an order made under Section 45J. The High Court may also prescribe the conditions subject to which such an appeal may be filed.
Section 45J contains special provisions concerning punishment of offences in relation to banking companies being wound up. Accordingly, a person relying on Section 45N(2) should also check the rules of the concerned High Court governing appeals from Section 45J orders.
Sub-section (3): finality of High Court orders and decisions
Sub-section (3) begins with the words "Subject to" sub-sections (1) and (2). Therefore, where an appeal is available under those provisions, the finality clause operates subject to that appellate right.
In other cases, and notwithstanding any other law for the time being in force, the High Court's order or decision is declared final and binding between the banking company and the persons who are parties to the proceeding, including persons claiming through or under them.
Practical point: Whether a particular High Court order is appealable cannot be determined from Section 45N in isolation. The character of the proceeding, the nature and value of the claim, Section 45J where applicable, and relevant procedural rules must all be examined.
Related provisions
Section 45N should be read with the neighbouring provisions of Part IIIA, including:
- Section 45J - Special provisions for punishing offences in relation to banking companies being wound up
- Section 45L - Public examination of directors and auditors in respect of a banking company under schemes of arrangement
- Section 45M - Special provisions for banking companies working under schemes of arrangement
- Section 45O - Special period of limitation
Official text of the Banking Regulation Act, 1949
For the latest consolidated statutory text, amendments and footnotes, refer to the official Banking Regulation Act, 1949 on India Code.
This page is intended as a general legal information resource. For litigation, limitation, maintainability of an appeal or procedural strategy, the current statutory text, applicable rules and binding judicial precedents should be checked.