Central Bank Act, 1971
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Directions by Bank to holders of licences. |
21.—(1) Where the Bank is of opinion that the holder of a licence has become, or is likely to become, unable to meet his obligations to his creditors, the Bank may give a direction in writing to the holder to suspend, for such period, not exceeding two months, as shall be specified in the direction, either or both of the following, that is to say, the taking of deposits or the making of payments which have not been authorised by the Bank. | |
(2) The Bank may revoke a direction given under this section unless an order under subsection (4) of this section has been made in respect of the direction. | ||
(3) The holder of a licence to whom a direction is given under subsection (1) of this section may apply to the Court for, and the Court may grant, an order setting aside the direction. | ||
(4) The Bank may apply to the Court for, and the Court may grant, an order confirming a direction under subsection (1) of this section or confirming the direction and extending the period of its operation for such time as the Court may, having regard to all the circumstances, consider appropriate. | ||
(5) The Court may, in addition to or in lieu of making an order under subsection (4) of this section, make such other order in relation to the matter as may appear to it to be necessary. | ||
(6) The whole or any part of proceedings under this section or of an appeal in relation thereto may be heard in chambers. | ||
(7) Where an order is made under subsection (4) of this section confirming and extending a direction under subsection (1) of this section— | ||
(a) if the person to whom the direction is given is a company, the company shall be deemed, for the purpose of the law relating to companies, to be unable to pay its debts, | ||
(b) if the person to whom the direction is given is an individual or a partnership, the individual or each partner, as the case may be, shall be deemed, for the purpose of the law relating to bankruptcy, to have committed an act of bankruptcy, and | ||
(c) the provisions of subsections (8) to (10) of section 29 of this Act shall apply and have effect as if the references therein to orders under subsection (3) of that section included references to orders under subsection (4) of this section, the references therein to proceedings under that section included references to proceedings under this section and “or in lieu of” in subsection (8) (a) of that section were deleted. | ||
(8) The Court may by order revoke or amend an order made by it under subsection (3), (4) or (5) of this section. |