Banking moratorium powers under Section 45 are framed as depositor protection measures, with validity of related orders questioned.

Section 45 of the Banking Regulation Act, 1949 is described as a protective power aimed at safeguarding depositors and maintaining confidence in the banking system. The text identifies two issues: whether the moratorium order and appointment of two directors were mala fide, ultra vires or otherwise invalid, and whether the scheme of amalgamation and its sanction were mala fide, ultra vires or unjustified on facts. Only the first issue is partially developed in the supplied text, and no final judicial conclusion is provided. The document therefore records the statutory purpose and the challenged validity of the moratorium and amalgamation measures without stating an outcome.

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Issues: (i) Whether the order imposing moratorium and appointing two directors was mala fide, ultra vires, or otherwise invalid; (ii) Whether the scheme of amalgamation and its sanction were mala fide, ultra vires, or unjustified on facts.

Issue (i): Whether the order imposing moratorium and appointing two directors was mala fide, ultra vires, or otherwise invalid.

Analysis: The statutory power under Section 45 of the Banking Regulation Act, 1949 is directed to protecting depositors and maintaining confidence in the banking system. The expression

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