Section 78: Application may be filed before the Court for Mandatory Liquidation of Bank or Financial Institution

1) The Rastra Bank may file an application to the court for mandatory liquidation of any bank or financial institution under this Chapter, and notice of the application of such action shall be published in a daily newspaper of the national level.

2) The Rastra Bank shall include the following documents along with the application filed before the court for initiation of the process of liquidation of any bank or financial institution pursuant to sub-section (1):-

(a) Details along with reasons for mandatory liquidation of the bank or financial institution that the situation referred to in Section 78 is prevailing,

(b) Financial statement of the bank or financial institution.

3) Notwithstanding anything contained in sub-section (1), any of the following persons may, with prior approval of the Rastra Bank, file an application to the court by mentioning the grounds to show the situation that a bank or financial institution may be subjected to mandatory liquidation pursuant to Section 79:-

(a) Joint application of the depositors having representation of more than 25 percent of the total deposit, who do not get the payment of the payable deposits or of more than one percent of the depositors,

(b) The person competent to file an application for mandatory liquidation according to the prevailing law relating to insolvency.

4) In case the court orders for initiation of the process of liquidation of a bank or financial institution based on the application referred to in sub-section (1) or (3), the process of mandatory liquidation of the bank or financial institution shall be commenced from the date of passing of such an order.