Section 37 of BRA : Section 37: Suspension Of Business
BRA
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Explanation using Example
Imagine a scenario where XYZ Bank, a well-known banking institution, has faced a sudden financial crisis due to an unexpected event causing a liquidity shortage. Despite this, the bank's management believes that this is a temporary situation and that they can recover with some time and restructuring.
XYZ Bank approaches the High Court for relief and files an application under Section 37(1) of the Banking Regulation Act, 1949. They request a moratorium, essentially a pause, on all legal actions and proceedings against them for a period of three months to sort out their finances wi...
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