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Home › Indian Laws › Banking Regulation Act, 1949 › Section 45H
Banking Regulation Act, 1949 · Section guide

Section 45H: Assessing damages against delinquent directors, etc.

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 45H — Assessing damages against delinquent directors, etc.. Allows the High Court to assess damages/compensation against delinquent directors, officers or others for misapplication,. retention, breach of trust or misconduct in relation to bank property.

Official statute linkedProvision-specific anatomyPractical case + evidence file
Official text: DFS consolidated Act

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 assess damages/compensation against delinquent directors, officers or others for misapplication, retention, breach of trust or misconduct in relation to bank property.

Condition / limitation

How to read the provisionSection 45H: read the operative proposition with its defined terms and cross-references in the official Act.

Timing / amount / process

Boundary of the ruleDo not expand Section 45H by analogy; distinguish statutory text from stricter policy or later RBI requirements.

Professional application

Explain misconduct/damages jurisdiction, persons covered, limitation/defences and remedies.

Evidence / working-paper checklist

  • Section 45H evidence: High Court/Central Government/RBI order initiating the process.
  • Section 45H evidence: liquidator/scheme records and creditor/debtor lists.
  • Section 45H evidence: service/publication and statutory-timeline evidence.
  • Section 45H 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 45H, avoid applying ordinary Companies Act procedure without the banking-specific override.
  • For Section 45H, avoid missing the special limitation or accelerated filing period.
  • For Section 45H, avoid treating a private scheme as effective before the statutory sanction/order.

Related sections inside the Act

Section 45F — Documents of banking company to be evidenceSection 45G — Public examination of directors and auditorsSection 45I — Duty of directors and officers to assist in realisation of propertySection 45J — Special provisions for punishing offences in winding up

Use these links to read Section 45H 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 45H 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 45H on the event date.

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.