Section 110A of MCS ACT 1960 : Order for winding up, reconstruction, suspension or supersession of committee, etc., of insured co-operative bank, not to be made without sanction or requisition of Reserve Bank of India

Section 110A : Order for winding up, reconstruction, suspension or supersession of committee, etc., of insured co-operative bank, not to be made without sanction or requisition of Reserve Bank of India

(1)Notwithstanding anything contained in this Act, in the case of an insured Co-operative Bank—

    (i)an order for the winding up, or an order sanctioning a scheme of compromise or arrangment, or of amalgamation, or reconstruction (including division or re-organisation), of the Bank may be made only with the previous sanction in writing of the Reserve Bank of India ;

    (ii)an order for the winding up of the Bank shall be made 3[by the Registrar] if so required by the Reserve Bank of India in the circumstances referred to in section 13-D of the Deposit Insurance Corporation Act, 1961 ;

    (iii)if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the bank being conducted in a manner deterimental to the interests of the depositors or for securing the proper management of the bank an order shall be made 4[by the Registrar]  1[for suspension or supersession of the committee, as the case may be, and the appointment of an Administrator in its place for such period, not exceeding one year. In case of supersession, an Administrator so appointed shall, before the expiry of his term of office, arrange for holding election to constitute the new managing committee and handover the management to the newly constituted committee. In case of suspension of the committee, the Registrar with prior permission of the Reserve Bank of India, shall revoke the order of suspension and direct the Administrator to handover the management to the committee] ;

    (iv)an order for the winding up of the bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or re-organisation) or an order for the 2[suspension or supersession] of the committee and the appointment of an Administrator therefor made with the previous sanction in writing or on the requisition of the Reserve Bank of India shall not be liable to be called in question in any manner; and

    (v)the Liquidator or the insured co-operative bank or the transferee bank, as the case may be, shall be under an obligation to repay the Deposit Insurance Corporation established under the Deposit Insurance Corporation Act, 1961, in the circumstances, to the extent and in the manner referred to in section 21 of that Act.

         3[Explanation.—In this section,—

           (a) the expression “ an insured co-operative bank ” means a society which is an insured bank under the provisions of the Deposit Insurance Corporation Act, 1961 ;

           (b)the expression “ the transferee bank ” has the same meaning as assigned to it in that Act.]

(2) Notwithstanding anything contained in this Act, in the case of the District Central Co-operative Bank and the State Co-operative Bank, the supersession of the Board and appointment of Liquidator shall be made by the Registrar, within one month of being so advised by the Reserve Bank of India.]]