Section 81: Appointment of Liquidator

1) The court may issue an order to the Rastra Bank to make a recommendation for the appointment of a liquidator for initiating the process of mandatory liquidation of any bank or financial institution.

2) In case the court issues an order pursuant to sub-section (1), the Rastra Bank shall recommend names of at least three persons for appointment to the Liquidator within fifteen days.

3) While making recommendations to the court by the Rastra Bank pursuant to sub-section (2), the persons having experience in the banking and financial sector from amongst the licensed insolvency practitioners according to the prevailing laws have to be recommended.

4) The court may appoint one of the three persons recommended pursuant to sub-section (2) as the Liquidator.

5) After the appointment of the Liquidator pursuant to sub-section (4), the Board of Directors of such bank or financial institution shall be deemed to have been ipso facto dissolved, and unless otherwise ordered by the Liquidator, services of entire officials and employees appointed by the bank or financial institution shall ipso facto be terminated.

6) In case the Liquidator appointed pursuant to sub-section (4) resigns, he/she dies, or the Rastra Bank deems that he/she is incompetent to perform the prescribed works, the Rastra Bank shall file an application to the court, according to this Section to appoint another Liquidator by removing such Liquidator.

7) Remuneration and terms and conditions of services of the Liquidator shall be as prescribed by the court on the recommendation of the Rastra Bank.