Asset Covered Securities Act, 2001
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Authority may direct designated credit institution to suspend its business. |
20.—(1) If the Authority reasonably believes that there may be grounds for revoking the registration of a designated credit institution under section 19 , it may, subject to Part 7, give to the institution a direction in writing prohibiting it from engaging in any specified activity referred to in section 21 (5) except with the permission of the Authority. | |
(2) If a direction given under this section is still in effect— | ||
(a) winding up or bankruptcy proceedings may be initiated in respect of the institution concerned, | ||
(b) a receiver over the assets of that institution may be appointed, and | ||
(c) the assets of that institution may be attached, sequestered or otherwise distrained, | ||
only if the prior approval of the High Court has been obtained. | ||
(3) The High Court may order that all or any part of proceedings before it under this section may be held in closed court if the Court is satisfied that it would, because of the nature or circumstances of the case or because it would be in the interests of justice, be desirable to make such an order. | ||
(4) The High Court may make a further order revoking or amending an order made under subsection (3). |