Section 96: Decision of Liquidation

1) The Liquidator of the bank or financial institution subject to mandatory liquidation or having its license revoked by the Rastra Bank shall have to submit an application before the court for liquidation after completion of the function of liquidation along with details of the activities performed.

2) In case the Liquidator submits an application to the court pursuant to sub-section (1), the court shall inquire on it as may be necessary and may decide that such bank or financial institution has been subjected to mandatory liquidation.

3) The Liquidator shall have to publish the decision given by the court pursuant to sub-section (2) in each national-level newspaper in Nepali or English language at least once, and while publishing in such manner, the main points in the order of the court and in the liquidation report shall have to be mentioned.

4) Upon publication of the notice pursuant to sub-section (3), the Liquidator shall request the Office of the Company Registrar to remove the name of the bank or financial institution from the list of registration of companies, and the Office of the Company Registrar shall publish the notice of removal of the name of the bank or financial institution from the Companies Registration Book in the Nepal Gazette accordingly.

5) The process of mandatory liquidation of the bank or financial institution shall be completed after removal of the name of the bank or financial institution subjected to mandatory liquidation after publishing notice thereof in the Nepal Gazette pursuant to sub-section (4) and such bank or financial institution shall be deemed to have been duly dissolved.

6) If there is any liability of a Director, Chief Executive, official, employee or shareholder of the bank or financial institution or other person under this Act or other prevailing Nepal laws, the mandatory liquidation of the bank or financial institution shall not absolve them from their respective liability.