 the banking companies (amendment) bill, 19s6(as introduced in lo~ sabra)  me banking companies (amendment) bill, 1956 (as introduced in lok sabra) a billfurther to amend the banking companie act, 1949 be it enacted by parliament in the seventh year of the republic of india as follows:-1 (1) this act may be called the banking companies (amend- short dtle a 6  ~ ~ $ ment) ct, 195 '   menc:emcnt (2) it shall come into force on· such date as the central government may, by notification in the official gazette, appoint 10 of 1949 z for section 10 of the banldng companies act, 1949 (hereinafter substitutiojl referred to as the principal act), the following section shall be ~!cd:1for 10 substituted, namely:-lectiod 10 "10 (1) no banking company-prohibition of employ-(a) shall employ or be managed by a managing agent; ment of or managin agenu add (b) shall employ or continue the employment of any testricdonl  on certain is personforms of (i) who is,or at any time has been, adjudicated in- employmeut solvent, or has suspended payment or has compounded with his creditors, or who is, or has been, convicted by a criminal court of an offence involving moral turpitude; 20 or (ii) whose remuneration or part of whose remuneration takes the form of commission or of a share in the profits of the company: provided that nothing contained in this clause shall apply to the payment of any bonus by any banking company in pursuance of a settlement or award arrived at or made under any law relating to industrial disputes or in accordance with any scheme framed by such banking company or in accordance with the usual practice prevailing in banking business; or (iii) whose remuneration is, in the opinion of the , reeerve bank, excessive; or (c) shall be managed by any person-(i) who is a director of any other company not being a subsidiary company of the banking company; or (ii) who is engaged in any other business or voca- 10 tion; or (iii) who has a contract with the company for its management for a period exceeding five years at anyone time: provided that any contract with the company for its is management may be renewed or extended for a further period not exceeding five years at a time if and so often al the directors so decide: provided further that nothing in this clause shall apply to a director, other than the managing director, of a banking ~o company by reason only of his being such director explanatian-for the purpose of sub-clause (iii) of clause (b), the expression "remuneration", in relation to a person employed or continued in employment, shall include salary, fees and perquisites but shall not include any allow- 25 anees or other amounts paid to him for the purpose of reimbursing him in respect of the expenses actually incurred by him in the performance of his duties (2) in forming its opinion under sub-clause (iii) of clause (b) of sub-section (1), the reserve bank may have re- 30 gard among other matters to the following:-(i) ,the financial condition and history of the banking, company, its size and area of operation, its resources, the volume of its b,usiness and the trend of its earning capa-~~; ~ (ii) the number of its branches or offtces; (iii) the qualifications, age and experience of the person concemed; (w) the remuneration paid to other persons employed by the banking company or to any person occupying a similar 40 position in any other banking company similarly lituated; and (v) the interests of its depositol'l (3) h any question arises in any particular case whether the r 5 muneration is excessive within the meaning of sub-clause (iii) of clause (b) of sub-section (1), the decision of the reserve bank thereon shall be final for all purposes" 3 for section 12 of the principal act, the followina ectiod ihall subld~od be substituted, namely:-~~ forlectiod xl 10 20 4112 (1) no banking company shall carry on busine81 in re~tloa india, unless it satisfies the following conditions, namely:-:~~~-~b-(i) that the subscribed capital of the company is not less :r~ capithan one-half of the authorised capital, and the paid-up authorilod capital is not less than one-half of the subscribed capital and := =t that, if the capital is increased, it complies with the condi- of iharetions prescribed in this clause within such period not ex- hol~ ceeding two years as the reserve bank may allow; (ii) that the capital of the company consists of ordinary shares only or of ordinary shares or equity shares and such preferential shares as may have been issued prior to the iii day of july, 1944: provided that nothing contained in this sub-section aha1l apply to any banking company incorporated before the 15th cia, of january, 1937 30 (2) no person holding shares in a banking company shall, in respect of any shares held by him, exercise voting right in excess of five per cent of the total voting rights of all the shantholders of the banking company (3) notwithstanding anything contained in any law for the time being in force or in any contract or instrument no suit or other proceeding shall be maintained against any person registered as the holder of a share in a banking company on the ground that the title to the said share vests in a person other than the registered holder: i5 provided that nothing contained in this sub-lection shall bw - suit or other proceeding-, (a) by a transferee of the share on the ground that h has obtained from the registered holder - transfer of the share in accordance with any law relating to such transfer: or ' (b) on behalf of a minor or a lunatic on the ground that the registered holder holds the share on behalf o~' the minor or lunatic (4) every chairman, managing director or chief executive officer by whatever name called of a banking' company shall s furnish to the reserve bank through that banking company returns containing fulll particulars of the extent and value of his holding of shares, whether directly or indirectly, in the banking company and of any change in the extent of such holding or any variation in the rights attaching thereto and such other infor- 10 mation relating to those shares as the reserve bank may, by general or special order, require and in such form and at such time as may be specified in the order" c after section 12 of the principal act, the following section shall ldeeruod of dew ieciion 13 a be inserted, namely: -is bicc:don of new directors "12a (1) the reserve bank may, by general or special order, require banking companies generally or any banking company in particular to call a general meeting of the shareholders of the company within such time, not less than two months from the date of the order, as may be specified in the 20 order or within such further time as the reserve bank may allow ill this behalf, to elect in accordance with the voting rights permissible under this act fresh directors, and the banking company shall be bound to comply with the order (2) every director elected under sub-section (1) shall hold 25  office until the date up to which his predecessor would have held  office, if the election had not been held (3) any election held under this section shall not be called in question in any court" 5 for section 16 of the principal act, the following section shall 30 be substituted, namely:-"16 (1) no banking company incorporated in india shall have as a director any person who is a directorsubitinadod ofoew eecdon for eetiod 16 problbidon ofc:ommoa dkectorl (i) of any other banking company; or (ii) of companies which among themselves are entitled 3s to exercise voting rights in excess of twenty per cent of the total voting rights of all the shareholders of the bankin, eompany (2) if immediately before the commencement of the bank· ing companies (amendinent) act, 1956, any person holding 40 office as a director of a banking company is also a director  of companies which among themselves are entitled to exercise voting rights in excess of twenty per cent of the total voting rights of all the shareholders of the banking company he shall, within such period from such commencement as the reserve bank may 5 specify in this behalf-(4) either resign his office as a director of the banking company; or  10 (b) choose such number of companies as among themselves are not entit1~ to exercise voting rights in -excess of  twenty per cent of the total voting rights of all the shareholders of the banking company as companies in which he wishes to continue to hold the office of a director and resign his office' as a director in the other companies" 6 in section 27 of the principal act, for sub-section 15 following sub-section shall be substituted, namely:-(2), the ame~llt of le<:t1on 27 20 "(2) the reserve bank may at any time direct a banking company to furnish it within such time as mky be specified by the reserve bank, with such statements and information relating to the business or affairs of the banking company (including any business or affairs with which such banking company is concerned) as the reserve bank may consider necessary or expedient to obtain for the purposes of this act, and without prejudice to the generality of the foregoing power may call for information every half-year regarding the classification of 'advances and investments of banking companies in respect of industry, commhce and agriculture" 7 after section 35 of the principal act, the following sections lneertion of shall be inserted, namely: -new aectiona 35a and "35a (1) where the reserve bank is satisfied that-3s b (a) in the national interest; or ~=~:r the (b) to prevent the affairs of any banking company being bad' nltt~ngive - conducted in a manner detrimental to the interest> of the iree \0 i depositors or in a manner prejudicial to the interests of the banking company; or 35 (c) t~ secure the proper management of the, banking company generally; " it is necessary to issue directions to banking co'mpanies generally or to any banking company in particular, 'if may from time to time issue such directions as it deems fit, and the banking companietl/ or the banking company, as the cue may be bound to comply with such directions; (2) the reserve bank may, on representation made to it or on its own motion, modify or cancel any direction issued under rub-section (1), and in so modifying or cancelling any direction may impose such conditions as it thinks fit, subject t:> which the modification or cahcellation shall have effect 5   35 b (1) in the case of a banking company-(a) no amendment of any provision relating to the appointment or re-appointment of a managing or whole-time director or of a director not liable to retire by rotation or of amendmenta of proviliona relating to ijjpointmcdti ofmanaaing directon,etc to be aubjec:t to previoua ~of the r ~lci've bank a manager or a chief executive officer by whatever name jo" called, whether that provision be contained in the company's memorandum or articles of association, or in an agreement entered into by it, or in any resolution passed by the company in general meeting or by its board of directors shall have effect unless approved by the reserve bank; is (b) no appointment or re-appointment df a managing or whole-time director, manager or chief executive officer by whatever name called, shall have effect unlesssuch appointment or re-appointment is made with the previous approval of the reserve bank 20 (2) nothing contained in section 268 or section 269 of the companies act, 1956, shall apply to a banking company after the i of 1956 commencement of the banking· companies (amendment) act, 1956 (3) no act done by a person as a managing or whole-time 25 director or a director not liable to retire by rotation or a manager or a chief executive officer by whatever name called, shall be deemed to be invalid on the ~ound that it is subsequ~ntly discovered that his appointme"nt had not taken effect by reason of any of the provisions of this act; but nothing in this section shall 30 be construed as rendering valid any act done by such person after  his appointment has been shown to the banking company not to have had effect" amendmellt 8 in section 36 of the principal act, in sub-section (1), for clause ofsecdon 36 (d), the following clause shall be substituted, namely:-35 , "(d) during the course, or after the completion, of any inspection of a banking compa!ly under section 35, by order in writing and on such terms and conditions as may be specified there~ (i) require the banking company to call a meeting of 40 its directors for the purpose of considering any matter relating to or arising out of the aftairs of the banking company, br require an ofbc:er of the banking company to cuseuls any such matter with an officer of the reserve bank; (ii) depute one or more of its officers to watch the proceedings at any meeting of the board of directors of the 5 banking company or of any committee or of any other body constituted by it; require the banking company to give an opportunity to the officers so deputed to be heard at such meetings and also require such officers to send a report of such proceedii"gs to the reserve bank; 10 (iii) require the board of di  :ectors of the banking company or any committee or any pther body constituted by it to give in writing to any officer specified by the  reserve bank in this behalf at his usual address all notices of, and other communications relating to, any meeting of the board, 15 colwllittee or other body constituted by it; (iv) appoint one or more of its officers to observe the manner in which the affairs of the banking company or of its offices or branches are being conducted and make a report thereon; 20 (v) require the banking company to make, within such time as may be specified in the order, such changes in the management as the reserve bank may consider necessary in consequence of the state of affairs disclosed during or by the inspection" 9 in section 46 of the principal act,-amcdd_1t of iccdn <ft (i) in sub-section (1), for the word "required", the words "or in any information required or furnished" shall be substituted; and (ii) in sub-section (4), after the words "any order", the words "or direction" shall be inserted 30 10 after section 46 of the principal act, the following section insertion of shall be inserted, namely: -~ section 35 4s of 18~o "46a every chairman, director, auditor, liquidator, manager chairman, and any other employee of a banking company shall be deemed dirbeec:tor'b~~~ to po  to be a public servant for the purposes of chapter ix of the sftftntl for indian penal code" ~~e&~1ics ixof~e i dian penal code 11 in section 49 of the principal act, for the words and figures ameddment "sections 17, 77, 8!b, a6h, 91b, 91d and sub-section (5) of section ofsec:tiad49 144 of the jndian companies act, 1913 (vii of 1013) ", the foilowing shall be substituted, namely:- "sections 90, 165 and 255, clauses (a) and (b) of 8ub-aeetion (1) of section 293 and sections 300and 416 of the companies act, 1956"   amendmeot 12 in section 50 of the principal act, the following words shall be of iection so inserted at the end, namely:-"or by reason of the compliance by a banking company with any direction given to it under this act" amendment 13 in s~tion 51 of the principal act, for the word and figures "34 10 of section to 36", die following shall be substituted, namely: - 51 "34,35,36 (excluding clause (d) of sub-section (1)" other mil· 1'- the principal act shall be further amended in the manner =nts specified in the schedule: ~ , provided that the amendments specified in the schedule relating is to section 2 and to the sections contained in part iii and part lila of the principal act shall not apply to a banking company the winding up of which commenced before th~ 1st day of april, 1956, and the provisions of the principal act shall apply 'to such banking company as if the amendments 'aforesaid had not been made 20 orner miscellaneous amendments in the banking coml'anies act, 1949 1 in sections ~ and 5, for "indian companies act, 1913 (vii of 1913)" and "indian companies act, 1913", substitute "companies act, 1956" 2 in section 7, for "section 26 of the indian companies act, 1913 i of 1956 (vii of 1913)", substitute "section 25 of the compaines act, 1956", 10 - 3 in section 11, for "section 103 of the indian companies act, 1913 i of 1956' (vii of 1913)", substitute "section 149 of the companies ~ct, 1956" 4 in section 18, for "sections 105 and 105a of the indian companies act, 1913 (vii of 1913)", substitute "sections 76 and 79 of the companies act, 1956" 15 5 in section 17, for the existing explanation, substitute the following explanation, namely:-j of 1956 "explaltation:-the provisions of section 349 of the companies act, 1956, shall apply for the purpose of computing net profits under this section as they apply for the purpose of computing net profits under section 348 of the said act" 20 icf1956 6 in section 20, for "section 54a of the indian companies act, 1913 (vii of 1913)", substitute "section 77 of the companies act, 1956" 7 in section 29, for "marked f in the third schedule to the 25 indian companies act, 1913 (vii of 1913)", substitute ,"set out in part i of schedule vi to the companies act, 1956" 1 of 1956 1 of,1956 8 in section 30, for "section 145 of the indian companies act, 1913 (vii of 1913)", substitute "section 227 of the companies act, 1956" - 30 i of 1956 1 of 1956 35 9 in section 32, for "section 134 of the indian companies act, 1913 (vii of 1913) ", substitute "section 220 of the companies act, 1956" 10 in section 35, for "section 138 of the indian companies act, 1913 (vii of 1913)", substitute "section 235 of the companies act, 1956" 11 in section 38-(i) in sub-section (1), for "section 162 or section 271 of the indian companies act, 1913 (vii of 1913)", substitute "section 433 or section 583 of the companies act" 1956" and 1 of 19s6, (ii) in sub-section (3), for "section 163" substitute "section 434 of the companies act, 1956" ' 1 of 1956 40 12 in section 38a omit sub-section (2) and bub-section (8) i of 1956 j of 1956 1 of 19~6 1 of 19056 13 in section 39, for "section 175 of the indian companies act, 1913 (vii of 1913)", substitute "section 448 of the companies act, 1956"  14 in section 40, for "section 173 of the indian companies act, 5 1913 (vii of 1913) ", substitute "section 466 of the companies act, 1956" 15 in section 41, for "section 177b of the indian companies act, 1913 (vii of 1913) ", substitute "section 455 of the companies act, 1956" 10 16 in· section 42, for "sections 178a and 183 of the indian coil1-panies act, 1913 (vii of 1913)", substitute "sections 460, 464 and 465 of the companies act, 1956" 17 in section 43, for "section 191 of the indian companies act, 1913 (vii of 1913)", substitute "section 474 of the companies act, 15 j of j956 1956"' 1 of 195"· 18 in section 43a, for "section 230 of the indian companies act, 1913 (vii of 1913) ", substitute "section 530 of the companies act, 1956" 1 of 1q56 19  in section 44-20 (i) for "section 203 of the indian companies act, 1913 (vii of 1913) ", substitute "section 484 of' the companies act, 1956"; and (ii) for "sections 218 and 220", substitute "sections 521 and 441'"  25 20  in section 45, for "section 153 of the indian companies act, 1913 (vii of 1913) ", substitute "section 391 of the companies act, 1956" 1 ot 19~ j 21 in section 45a, far "indian companies act, 1913 (vii of 1953)", substitute "companies act, 1956" 30 1 of 1956  22 in section 45b, for "section 153 of the indian companies act, 1913 (vii of 1913) ", substitute "section 391 of the companies act, i of 11<156 - 1956" 23 in section 45e-(i) for "section 184 of the indian companies act, 1913 (vii 3s of 1913) ", substitute "section 467 of the companies act, 1956", i of 1956 and (ii) for "section 187 of the indian companies act, 1913 (vii of 1913)", substitute "section 470 of the companies act, 1956" i of 1956 24 in section 45h, in su~secttons (1) and (2), for "section 235 of 40 the indian companies act, 1913 (vii of 1913) ", substitute "section 543 of the companies act, 1956" 1 of 19,6 lof 1956 25 in section 45j, for "indian companies act, 1913 (vii of 1913)", substitute "companies act, 1956" 26 in section 45k-5 1 of 1956 (i) in sub-section (1) and in sub-section (3), for "section 153 of the indian companies act, 1913 (vii of 1913) ", substitute "section 391 of the companies act, 1956"; and  (ii) in sub-section (2)-(a) for "section 153 of the indian companies act, 1913 1 of 1956 10 (vii of 1913) ", substitute "section 391 of the companies act, 1956"; and (b) for "section 162 of the indian companies act, 1913 (vii ot' 1913) ", substitute "section 433 of the companies act, 1956" 1 of 1956  27 in section 451-15 1 of 1956 (i) in sub-section (1), for "section 153 of the indian companies act, 1913 (vii of 1913) ", substitute "section 391 of the companies act, 1956"; and ~  (ii) in sub-section (2)-20 1 of 1956 (a) for "section 153 of the indian companies act, 1913 (vii of 1913)", substitute "section 391 of the companies act, 1956"; and (b) for "section 235 of the said act", substitute "section 543 of the said act" 28 in section 45m, for "section 153 of the indian compa:1ies act, 251913 (vii of 1913) ", substitute "section 391 of the companies act, 1 of 1956 1956"  29 in sectiori 450 in sub-section (2), for "section 235 of the indhn companies act, 1913 (vii of 1913) ", substute "section 543 of the j oc1956 companies act, 1956"  statement of objects and n~asonsexperience has shown that the existing provisions in the banking companies act, 1949, are not adequate to prevent certain undesirable tendencies in the administration of banking companies which might affect the soundness of the companies or not be in the public interest or in the interests of the depositors the present bill, therefore, seeks to amend the act so as to tighten up control over banking companies in the following directions:-(i) to check the payment of excessive remuneration to bank employees on a consideration of all relevant factors; (ii) to make' the existing restrictions on exercise of voting rights in the hands of individual shareholders applicable to banks which are now exempt from such restrictions, namely, those established before the 15th january, 1937; and to empower the reserve bank to direct the election o~ fresh directors on the basis of the restricted'voting rights; (iii) to prohibit appointment as director of· one who is  director of other companies which together can exercise voting rights in excess of 20 per cent of voting rights in a banking company; (iv) to enable the reserve bank to obtain statements and information over a wider range than hitherto for the performance of the functions under the act; (v) to enable the reserve bank to give directions to banking companies in relation to matters of policy or administration affecting the public interest, and to make failure to observe such directions liable to specified penalties; (vi) to render appointments of managing directors, managers or the chief executive officers by whatever name called of banking companies and the terms of their appointments subject to the prior approval of the reserve bank; (vii) to enable the reserve bank to depute an observer or observers for purpose of observing and reporting on the conduct of affairs of a banlting company; (viii) to include the chairman, director, auditor, liquidator and other employees of banking companies within the definition of "public servants" for the purpose of chapter ix of tbe indian penal code and the prevention of corruption act, 1947, so that action can be ~aken in cases where illegal gratifications are taken by them 2 opportunity has also been taken in this bill to clarify-(a) that the payment of bonus to bank employees does not amount to employment on the basis of a commission or a share of profits which is prohibited under clause (b) of sub-section (1) of section 10 of the banking companies act; and (b) that restrictions imposed by clause (c) of sub-section (1) of section 10 of the banking companies act on persons appointed to manage banking companies are not applicable to directors other than managing directors 3 the bill also provides for references contained in the banking companies act to the indian companies act, 1913, being substituted by references to 'the relevant sections of the companies act, 1956 new delhi; t t krishnamachari the 30th november, 186g  annexure extracts from thb banlting compands act, 1948(10 of 1949) - - - - - - 10 (1) no banking company-(a) shall employ or be managed by a managing agent, or prohibition of emplor· meot manqinl ot ( b) shall employ any personapnta and rltrictionl (i) who is or at any time has been adjudicated idiol· &:dli ~ vent, or has suspended payment or has compounded with his cmplo)'mcot creditors, or who is or has been convicted by a criminal court of an offence involving moral turpitude; or (ii) whose remuneration or part of whose remuneration takes the form of commission or of a ahare in the proats of the company; or  (iii) whose remuneration is, according to the normal standards prevailing in banking busin~, on a cal disproportionate to the resources of the company; or (c) shall be managed by any person-(i) who is a director of any other company, not being a subsidiary company of the banking company; or (ii) who is engaged in any other business or vocatiod; or (iii) who has a contract with the company for ita management for a period exceeding five years at any ode time: provided that the said period of five years shall, in relation to contracts subsisting on the 1st day of july, 1944, be computed from that date: provided further that any contract with the company for its management may be renewed or extended for a further period not exceeding five years at a time if and 80 often as the directgrs 80 decide (2) if any question arises in any particular case whether the remuneration is, according to the nonnal standards prevailing til banking business, on a scale disproportionate to the resources of the company for the purpose of sub-clause (iii) of clause (b) of sub-section (1), the decision of the reserve bank thereon shall be final for all purposes - - - - - - ~~n 12 no banking company shall carry on business in india, l\llless cap'i~ i\i~ it sati~fies the following conditions, namely:-::~d c:a:: (i) that the subscribed capital of the company is not less th~:r d than one-half of the authorised capital, and the paid-up capital :'jtng' r~ti is not less than one-half of the subscribed capital and that, if the ~id abarecapital is increased, it complies with the conditions prescribed in era this clause within such period not exceeding two years as the reserve bank may allow; (ii) that the capital of the company consists of ordinary shares only or of ordinary shares and such preference shares as may have been issued prior to the 1st day of july, 1944; (iii) that, subject to the provisions contained in clause (iv) hereof, the voting rights of anyone shareholder, whether a preference shareholder or an ordinary shareholder, are strictly proportionate to the contribution made by him to the paid-up capital of the company; (iv) that the voting rights of anyone shareholder do not exceed five per cent of the total voting rights of all the shareholders: - ~ ~"\~i1i~~ prohibition provided that nothing contained in this section shall apply to any banking company incorporated before the 15th of january, igs7 - - - - - - a 16 no banking company incorporated in india shall have as ~rre:,~on director any person who is a director of another banking company            -                  -                        -                               -                                     -                                           - '27 m01thly re-turn         and power to):en for other re-tune and in-formatio 1 -       -             -                   -                          -                                -      (02) the reserve bank may, at any time, by notice in writing, require a banking  company to furnish it within the time specified therein or such further time as the reserve bank may allow, with statements and information relating to the business of such banking                                      16 company, and without prejudice to the generality of the foregoing power may call for information every half-year regarding the classifi-cation of advances and investments of banking companies in respect of industry, commerce and agriculture                  -                          -                                  -                                          -                                                  -                                                          -    36 (1) the reserve bank may-                                                                            purger ,                                                                             wed,                                                                                     ,and                  -                          -                                  -                                          -                                                  ••                                                                             tunctienl of          (d) durine the course, or after the completion, of any =ve     in&pectign of ii banking company under section 35, by order in     writing, require the company-             (i) to call a meeting of its directors for the purpose, of         considering any matter arising in the course of or out of         such inspection or of meeting an officer of the reserve bank         to discuss any such matter;              (ii) to make, within such time as may be specified in         the order, such changes in its management as the reserve         bank may consider necessary in consequence of the state of          affairs disclosed during or by the inspection                  -                          -                                  -                                          -                                                  -                                     part iv                                  miscellaneous                                                          -     48 (1) whoever in any return, balance-sheet or other document pcdiltiee required by or under or for the purposes of any provision of this act, wilfully makes a statement which is false in any material parti-cular, knowing it to be false, or wilfully omits to make a material statement" shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine                      -                                -                                          -                                                    -                                                            ,~                                                                       -     (4) if any other proviaion of thia act is contravened or if any default is made in complying with any requirement of this act, or' of any order made thereunder, every director and other officer of the banking company who is knowingly a party to the contravention or default shall be punishable with a fine not exceeding five hundred rupees, and where the contravention or default is a continuing one, with a further fine not exceeding fifty rupees for every day during which it continues                      -                                -                                          -                                                    -                                                              -                                                                        -     49 the exemptiolll, whether express or implied, in favour of a special 1""0-private company in sections 17, 77, 83b, 86h, 91b, and 91d, and sub- viaioa                                                                                                          for section (5) of section 144 of the indian companies act, 1913 (vii of rn~vate~: 1913), shall not operate in favoqr of a private company which1s a panie •• banldng company                              ' ~ain (or 50 no person shall have any right, whether in contract or other-='~n  - wise, to any compensation for any loss incurred by reason of the opetion barred ration of any of the provisions contained in sections 10 and 16 or by reason of the compliance by a banking company with any order given to it under sub-clause (ii) of clause (d) of sub-section (1) of sc!ction 36 - - - - - - a bill further to amend the banking companies act, 1949 , (shri t t krishnamachari, minz'ster of finance) 