14

Act No Act No. XXII of 1948 Banking Companies (Control) Act. 1948. An Act to Provide for the control of banking companies by the State Bank of Pakistan, Whereas it is expedient to provide for the control of banking companies by the State Bank of Pakistan ; It is hereby enacted as follows : 14. Restriction on amalgamation:-Notwithstanding anything contained in any law for the time being in force (a) no court shall entertain an application for sanctioning a compromise or arrangement between a banking company and its creditors or any class of them, or between such company and its members or any class of them, unless the. application made in respect thereof is accompanied by a report of the State Bank certifying that the compromise or arrangement is not detrimental to the interests of the depositors of the company, and (b) no banking company shall enter into any agreement or arrange ment for, or be a party to, any scheme for the amalgamation of such company with any other banking company without the previous sanction in writing of the State Bank.