Section 45 of The Small Industries Development Bank of India Act, 1989
No suit or other legal proceeding shall lie against the Small Industries Bank, 1[chairman and managing director, the whole-time director] or any Director or any officer or other employee of such Bank or any other person authorised by that Bank to discharge any functions under this Act for any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any other law or provision having the force of law.
Summary
- No lawsuit or legal proceeding can be filed against the Small Industries Bank or its personnel for loss or damage caused while doing their jobs.
- This legal protection covers the bank itself, the chairman, managing director, whole-time directors, regular directors, officers, employees, and any authorized persons.
- To qualify for this protection, the action causing the damage must have been done, or intended to be done, in good faith while following this Act or any other law.
Practical examples
FAQ
1. Can I sue the managing director if the bank legally denies my loan application?
No, a suit or legal proceeding shall not lie against the managing director for actions taken in good faith under the Act.
2. Does this protection apply to regular bank clerks as well as top executives?
Yes, it protects any officer, other employee, or any other person authorized by the bank.
3. What is the main requirement for bank staff to be protected from a lawsuit?
The action must have been done, or intended to be done, in good faith in pursuance of this Act or any other law.
Test yourself
Q1.Under Section 45 of The Small Industries Development Bank of India Act, 1989, what is the primary condition for a bank employee to be protected from legal proceedings?
Q2.Under Section 45 of The Small Industries Development Bank of India Act, 1989, which of the following groups is explicitly listed as being protected from lawsuits?
Q3.Under Section 45 of The Small Industries Development Bank of India Act, 1989, what types of claims does this legal protection defend against?
Q4.Under Section 45 of The Small Industries Development Bank of India Act, 1989, does the protection apply if a staff member makes an honest mistake while intending to follow the law?