Special banking liquidation scheme prevails over general company law, and the Reserve Bank's nominee may be appointed liquidator.

The winding up of a banking company is governed primarily by the special scheme in the Banking Companies Act, 1949, which operates as a self-contained code and is not displaced by the general liquidation provisions of the Companies Act, 1956 except where consistent. In that statutory setting, the absence of a court liquidator under the Companies Act does not make the general regime controlling. The court may lawfully accept the Reserve Bank's nominated person as official liquidator, and due weight should be given to the Reserve Bank's selection. The appointment of the nominated liquidator was therefore upheld.

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Issues: Whether, on the winding up of a banking company under the Banking Companies Act, 1949, the official liquidator must necessarily be the court's official liquidator under the Companies Act, 1956, or whether the court could accept the Reserve Bank's nominated person as official liquidator.

Analysis: The Banking Companies Act, 1949 constituted a special code for the winding up of banking companies. Sections 38, 38A and 39, as amended, showed that the scheme of liquidation of banking companies was distinct from the general regime under the Companies Act, 1956. The fact that no court liquidator had been attached for the High Court under section 38A did not make the provisions of the Companies Act automatically controlling. Section 616 of the Companies Act itself made its application to banking companies subject to inconsistency with the Banking Companies Act, 1949. In that statutory setting, where the Reserve Bank had not sought to act as official liquidator and had selected a suitable person, the court was entitled to accept that selection and should give due weight to the Reserve Bank's wishes.

Conclusion: The appointment of Mr. Bhagirath Das as official liquidator was lawful and the preliminary objection was rejected.

Final Conclusion: The liquidation of a banking company was held to be governed primarily by the special provisions of the Banking Companies Act, and the court's appointment of an official liquidator at the Reserve Bank's selection was sustained.

Ratio Decidendi: Where a special statute contains a self-contained scheme for liquidation of banking companies, the general liquidation provisions of the Companies Act do not compulsorily displace that scheme, and the court may lawfully accept the Reserve Bank's nominated person as official liquidator.

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