Banking Regulation Act, 1949 · Section guide
Section 42: Power to dispense with meetings of creditors, etc.
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 42 — Power to dispense with meetings of creditors, etc.. Allows the High Court to dispense with meetings of creditors/contributories where the special. Winding-up procedure makes a meeting unnecessary; court direction replaces ordinary company-law meeting mechanics.
Official statute linkedProvision-specific anatomyPractical case + evidence file
Statutory structure and provision map
This map is a provision-specific explanation, not a substitute for the exact statutory text.
Core statutory rule
Allows the High Court to dispense with meetings of creditors/contributories where the special winding-up procedure makes a meeting unnecessary.
Condition / limitation
court direction replaces ordinary company-law meeting mechanics.
Source and effective-date control
Apply the wording of Section 42 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.
Professional application
Identify who may apply and the precise circumstances for dispensing with meetings.
Evidence / working-paper checklist
- Section 42 evidence: High Court/Central Government/RBI order initiating the process.
- Section 42 evidence: liquidator/scheme records and creditor/debtor lists.
- Section 42 evidence: service/publication and statutory-timeline evidence.
- Section 42 evidence: orders settling claims, calls, transfers, moratorium or amalgamation.
Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.
Common mistakes to avoid
- For Section 42, avoid applying ordinary Companies Act procedure without the banking-specific override.
- For Section 42, avoid missing the special limitation or accelerated filing period.
- For Section 42, avoid treating a private scheme as effective before the statutory sanction/order.
Related sections inside the Act
Use these links to read Section 42 in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.
Current-law source control
Source control: Section 42 is anchored to the official DFS consolidated text; later changes require separate Gazette verification.
Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 42 on the event date.
Primary official sources
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Disclaimer
This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.