(i) This Ordinance may be called the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969.
(2) It shall come into force at once.
Short title and commencement.
(215) it6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
2. In this Ordinance, unless the context otherwise requires,—
(a) "banking company" does not include a foreign company within the meaning of section 591 of the Companies Act, 1956;
(b) "existing bank" means a banking company specified in column 1 of the First Schedule, being a company the deposits oi which, as shown in the return as on the last Friday of June, 1969, furnished to the Reserve Bank under section 27 of the Banking Regulation Act, 1949, were not less than rupees fifty crores;
(c) "corresponding new bank", in relation to an existing bank, means the body corporate specified agamst such bank in column 2 of the First Schedule;
(d) "Custodian" means the Custodian referred to, Or appointed, under section 10;
(e) "prescribed" means prescribed by rules made under this Ordinance;
(/) "Tribunal" means the Tribunal constituted under section 7;
(g) words and expressions u<-ed herein and not defined but dellned in the Banking Regulation Act, 1949, have the meanings respectively assigned to them in that Act.
CHAPTER 11 TRANSFER OF THE UNDERTAKINGS OF EXISTING BANKS
3. (/) On the commencement of this Ordinance, there shall be constituted such corresponding new banks at, are specified in the First Schedule.
(2) The paid-up capital of every corresponding new bank constituted under sub-section (1) shall, until any provision is made in this behalf in any scheme made under section 13, be equal to the paid-up capital of the existing bank in relation to which it is the corresponding new bank.
(3) The entire capital of each corresponding new bank shall stand vested and allotted to the Central Government, (•/) Every corresponding new bank shall establish a reserve fund to which shall be transferred the balance, if any, standing to the credit of the appropriate existing bank and such further sums, if any, as may be transferred in accordance with the provisions of section 17 of the Banking Regulation Act, 1949.
(5) Every corresponding new bank shall be a body corporate with perpetual succession and a common seal and shall sue and be sued in its name.
(6) Every corresponding new bank shall carry on and transact the business of banking as defined in clause (b) of section 5 of the Banking Regulation Act, 1949, and may engage in one or more forms of business specified in sub-section (2) of section 6 of that Act.
Establishment of corresponding new banks.
Definitions.
1 of 10B6.
10 of 1949.
10 of 1649.
10 of 194B.
10 of 1949 Stc. 1] THE GAZETTE Oi; INDIA EXTRAORDINARY 217
4. On the commencement of this Ordinance, the undertaking of every existing bank shall be transferred to, and shall vctt in, the corresponding new bank.