Section 2 of the Banking Regulation Act, 1949 states that the provisions of this Act shall be in addition to, and not in derogation of, the Companies Act, 1956 or any other law for the time being in force, subject to an express qualification. What is the effect of this section on the relationship between the Act and other existing laws?

Section 2 establishes the additive, non-derogatory character of the Banking Regulation Act. It provides that the Act’s provisions shall be in addition to, and not — save as hereinafter expressly provided — in derogation of the Companies Act, 1956 or any other law in force. The qualifying phrase “save as hereinafter expressly provided” is critical: it means the Act does not automatically override other laws, but it can do so where a specific provision expressly states that outcome. For example, Section 5A expressly overrides the memorandum and articles of a banking company, and Section 38 overrides certain Companies Act provisions on winding up. The general rule remains one of co-existence, and banking companies must comply with both the Act and the Companies Act unless there is a specific override.