Section 33B of The National Housing Bank Act, 1987 in hindi
1[33B. Power of National Housing Bank to file winding up petition.--(1) The National Housing Bank, on being satisfied that a housing finance institution which is a company,--
- (a)is unable to pay its debt; or
- (b)has by virtue of the provisions of section 29A become disqualified to carry on the business of a housing finance institution; or
- (c)has been prohibited by 2[the National Housing Bank or the Reserve Bank] from receiving deposit by an order and such order has been in force for a period of not less than three months; or
- (d)the continuance of the housing finance institution is detrimental to the public interest or to the interest of depositors of the company, may file an application for winding up of such housing finance institution under the 3[Companies Act, 2013 (18 of 2013)].
- (2)A housing finance institution which is a company shall be deemed to be unable to pay its debt if it has refused or has failed to meet within five working days any lawful demand made at any of its offices or branches and the National Housing Bank certifies in writing that such company is unable to pay its debt.
- (3)A copy of every application made by the National Housing Bank under sub-section (1) shall be sent to 3[the Registrar of Companies and the Reserve Bank].
- (4)All the provisions of the 3[Companies Act, 2013 (18 of 2013)] relating to winding up of a company shall apply to a winding up proceeding initiated on the application made by the National Housing Bank under this provision.]
Summary
- Section 33B of the housing finance rules allows the National Housing Bank to ask a court to shut down a failing company.
- This process, called winding up, can be started if a company is unable to pay its debts, loses its legal qualification to do business, or poses a threat to the public.
- A company is officially considered unable to pay its debts if it fails to meet a lawful demand for payment within five working days.
- The National Housing Bank must send copies of its shut down application to the Registrar of Companies and the Reserve Bank.
Practical examples
FAQ
1. When is a company considered unable to pay its debts under Section 33B of The National Housing Bank Act, 1987?
Under Section 33B of The National Housing Bank Act, 1987, a company cannot pay its debts if it fails to meet a lawful demand within five working days and the National Housing Bank certifies this failure.
2. How long must a deposit ban last before winding up starts under Section 33B of the housing finance law?
Under Section 33B of the housing finance law, a company can face winding up if an order prohibiting it from receiving deposits has been in force for a period of not less than three months.
3. Who gets a copy of the winding up application under Section 33B of the National Housing Bank rules?
Under Section 33B of the National Housing Bank rules, copies of the winding up application must be sent to the Registrar of Companies and the Reserve Bank.
Test yourself
Q1.Under Section 33B of The National Housing Bank Act, 1987, how many days must a company fail to meet a lawful payment demand to be deemed unable to pay its debt?
Q2.Under Section 33B of the housing finance law, which authority must certify in writing that a company is unable to pay its debt?
Q3.Under Section 33B of the housing bank regulations, what duration of a deposit ban allows the filing of a winding up petition?
Q4.If the Reserve Bank issues a deposit ban under Section 33A, can that lead to a winding up petition under Section 33B of The National Housing Bank Act, 1987?