Section 50: Certain claims for compensation barred

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 50 — Certain claims for compensation barred. Bars specified compensation claims arising from lawful application of the Act’s management/reconstruction/acquisition controls; the bar is limited to the statutory situations identified and is not blanket immunity for every bank loss.

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

Bars specified compensation claims arising from lawful application of the Act’s management/reconstruction/acquisition controls.

Condition / limitation

the bar is limited to the statutory situations identified and is not blanket immunity for every bank loss.

Source and effective-date control

Apply the wording of Section 50 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

Enumerate compensation claims barred and the statutory actions triggering the bar.

Evidence / working-paper checklist

Section 50 evidence: the statutory event document.
Section 50 evidence: the competent authority record.
Section 50 evidence: any rule/notification governing the event.
Section 50 evidence: dated conclusion and supporting official source.

Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.

Common mistakes to avoid

For Section 50, avoid relying only on the marginal heading.
For Section 50, avoid ignoring an express exception or cross-reference.
For Section 50, avoid recording a conclusion without the primary source and event date.

Related sections inside the Act

Use these links to read Section 50 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 50 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 50 on the event date.

Professional reading note

Professional reading note — Section 50 should be applied as a sequence, not as an isolated heading. Start with the factual trigger

for certain claims for compensation barred, then test the operative proposition: Bars specified compensation claims arising from lawful application of the Act’s

management/reconstruction/acquisition controls. Next confirm the limiting or interaction point: the bar is limited to the statutory situations identified and is not blanket

immunity for every bank loss. The working file should be capable of showing why the section applies to the relevant bank or

person, which statutory version governs the event date, and which documentary record proves the conclusion. Useful evidence on this page includes Section

50 evidence: the statutory event document and Section 50 evidence: the competent authority record. Read the provision in sequence with Section 49B

— Change of name by a banking company and Section 49C — Alteration of memorandum of a banking company. This method keeps

the legal answer tied to the provision itself while allowing RBI directions, rules and later instruments to be layered on only where

their own scope actually applies.

Primary official sources

Department of Financial Services — consolidated Banking Regulation Act, 1949

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.