Question

Under Section 1(4)(c) of the Companies Act, 2013, the provisions of the Act apply to banking companies-

Q: Answer-Under Section 1(4)(c) of the Companies Act, 2013, the provisions of the Act apply to banking compani...

Section 14c of the Companies Act, 2013, carves out banking companies from the full sweep of the Act with the express limitation except in so far as the said provisions are inconsistent with the provisions of the Banking Regulation Act, 1949 10 of 1949. This is a classic special-law-overrides-general-law provision - the BR Act prevails on points of inconsistency. Option A ignores the carve-out entirely C wrongly restricts applicability to a handful of corporate housekeeping provisions D incorrectly substitutes the RBI Act for the BR Act E misapplies the notification mechanism under clause f, which is reserved for special bodies corporate incorporated by separate Acts, not for ordinary banking companies. Private sector banks like HDFC Bank are fully subject to the Companies Act except where inconsistent with the BR Act, while statutory banks like SBI and PNB are not companies at all. The correct answer is B.

A In all respects and to the fullest extent, without any exception or modification whatsoever.

B Except in so far as the said provisions are inconsistent with the provisions of the Banking Regulation Act, 1949.

C Only with respect to matters relating to incorporation, registration of charges, and maintenance of books of account.

D Except in so far as the said provisions are inconsistent with the provisions of the Reserve Bank of India Act, 1934.

E Only if the banking company has been specifically notified by the Central Government under Section 1(4)(f) as a body corporate to which the Act applies.

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