Central Bank Act, 1942

Payment of debts out of deposit.

45.—(1) Whenever a person (in this sub-section referred to as the creditor) obtains in any Court a judgment, order, or decree against a person (in this section referred to as the depositor) who has made and maintains a deposit in the High Court under this Part of this Act for the payment of a sum of money in discharge of a liability (whether liquidated or unliquidated) incurred by the depositor in the course of or in relation to the business carried on by him, the High Court may, if it so thinks proper on the application in a summary manner of the creditor, order that the said sum of money and the costs (if any) payable by the depositor to the creditor under the said judgment, order, or decree and also (if the High Court so thinks proper) the creditor's costs of such application be paid to the creditor out of the said deposit so maintained by the depositor.

(2) Whenever any money is paid, in pursuance of an order of the High Court made under the foregoing sub-section of this section, out of a deposit in the High Court under this Part of this Act, the following provisions shall have effect, that is to say:—

(a) the Accountant of the Courts of Justice shall forthwith inform the Minister of such payment;

(b) the said Accountant shall ascertain the amount of the balance of the said deposit remaining after such payment thereout and, if that balance is less than the proper amount of the said deposit under this Part of this Act, the said Accountant shall send by post to the depositor a notice in writing stating that the said balance falls short of the said proper amount and also stating the amount (in this sub-section referred to as the said deficiency) by which the said balance so falls short;

(c) for the purpose of the said ascertainment of the amount of the said balance, all (if any) securities comprised in the said deposit shall be valued at their respective current market values;

(d) when the said Accountant has sent to the depositor such notice as aforesaid, the depositor may deposit in the High Court (by way of addition to the said deposit) in money or in securities authorised by rules of court for the investment of moneys under the control of the High Court or partly in money and partly in such securities an amount equal to the said deficiency, and, if the depositor so deposits the said amount not more than fourteen days after the posting of the said notice, he shall be deemed to have maintained the said deposit at the amount required by this Part of this Act.