(2) The undertaking of each existing bank shall be deemed to include all assets, rights, powers, authorities and privileges and all property, movable and immovable, cash balances, reserve fund, investments and all other rights and interests arising out of such property as were immediately before the commencement of this Ordinance in the ownership, possession, power or control of the existing bank in relation to the undertaking, whether within or without India, and all books of accounts, registers, records and all other documents of whatever nature relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the existing bank in relation to the undertaking.
(2) If, according to the laws of any country outside India, the provisions of this Ordinance by themselves are not effective to transfer or vest any asset or liability situated in that country which forms part of the undertaking of an existing bank to, or in, the corresponding new bank, the affairs of the existing bank in relation to such asset or liability shall, on and from the commencement of this Ordinance, stand entrusted to the chief executive officer for the time being of the corresponding new bank, and the chief executive officer may exercise all powers and do all such acts and things as may be exercised or done by the existing bank for the purpose of effectively winding up the affairs of that bank.
(5) The chief executive officer of the corresponding new bank shall, in exercise of the powers conferred on him by sub-section (2), take all such steps as may be required by the laws of any such country outside India for the purpose of effecting such transfer or vesting, and in connection therewith may either himself or through nnv person authorised by him in this behalf realise any asset and discharge any liability of the existing bank.
(4) Notwithstanding anything contained in sub-section (2), on thp commencement of this Ordinance, no person shall make any claim or demand or take any proceeding in India against any existing bank or any person acting in its name or on its behalf except in F.O far as may be necessary for enforcing the provisions of this section or except in so far as it relates to any offence committed by such person,
(5) Unless otherwise expressly provided by this Ordinance, all contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature subsisting or having effect immediately before the commencement of this Ordinance and to which the existing bank is a party or which are in favour of the existing bank shall be of as full force and effect against or in favour of the corresponding new bank, and may be enforced or acted upon as fully and effectively as if in the place of the existing bank the corresponding new bank had been a party thereto or as if they had been issued in favour of the corresponding now bank.
Undertaking of existing banks to vest in corresponding new banks.
General effect of vesting.
218 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(6) If, on the date of commencement of this Ordinance, pny suit, appeal or other proceeding of whatever nature is pending by or against the existing bank, the same .shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the undertaking of the existing bank or of anything r:on1ained in this Ordinance, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the corresponding new bank.
C (1) The Central Government shall pay compensation to .ea^h existing bank for the acquisition of its undertaking and such compensation shall be determined in accordance with the principles specified in the Second Schedule and in the manner hereinafter set out, that is to say,—
(a) where the amount of compensation can be fixed by agreement, it, shall be determined in accordance with such agreement;
(b) where no such agreement can be reached, the Central Government shall refer the matter to the Tribunal within a period of three months from the date on which the Central Government and the existing bank fail to reach an agreement regarding the amount of compensation.
(2) Notwithsianding that separate valuations are calculated under the principles specified in the Second Schedule in respect of the several matters referred to therein, the amount of compensation to be given shall be deemed to be a sinole compensation to be given for the undertaking as a whole.
(?) The amount of compensation determined in accordance with t&c foregoing provisions shall be paid to each existing bank in marketable Central Government securities and the form of such securities and the value thereof, computed wilh inference to their market value shall be such as the Central Government may, by notification in the Official Gazette, specify in this bohali:
Provided that where the amount of such compensation ie not an exact multiple of the value of the Government security as so notified, the amount in excess of the nearest lower multiple of such value shall be paid by cheque drawn on tine Reserve Bank.
7. (/) The Central Government may, for the purposes of this Ordinance, constitute a Tribunal which shall consist of a Chairman and two other members.
(2) Tho Chairman shall be a person who is, or has been, a Judge of a High Court or of the Supreme Court, and, of tho two other members, one shall be a person who, in the opinion of the Central Government, has had experience of banking and the other shall be a persoji wfto ;s a Chartered Accountant within the meaning of the Chartered Accountants' Act, 1949,
(3) If, for any reason, a vacancy occurs in the office of i,he Chairman, or any other member of tho Tribunal, the Central .Government may fill the vacancy by appointing another person thereto in accordance with the provisions of sub-section (2) and any proceeding may be continued before the Tribunal so constituted from the stage at which the vacancy had occurred, Payment of compensation, Constitution of the Tribunal.
38 of 1949.
Sw. 1] THE GAZETTE OF INDIA EXTRAORDINARY 219
(4) The Tribunal may ior the purpose of determining any compensation payable under this Ordinance, choose one or more persons having special knowledge or experience of any relevant matter to assist in the determination of such compensation.
8. The Tribunal shall have the powers oE a Civil Court, while trying a suit under the Code of Civil Procedure, 190B, in respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production oL documents;
(c) receiving evidence and affidavits;
(d) issuing commissions ior the examination of witnesses or documents.
9. (/) The Tribunal shall have power 1o regulate its own procedure.
(2) The Tribunal may hold the whole or any part of its inquiry in camera.
(5) Any clerical -or arithmetical erroi in any order of the Tribunal or any error arising therein from an accidental slip or omission may, at any time, be corrected by the Tribunal either by its own motion or on the application of any of the parties.
CHAPTER III MANACEMFNT or coupKSPiiNinNr, Nr,w BANKS
10. (/) The head office oi each coiresponding new bank shall be at such place as the Cenin] Government may, by notification in the Official Gazette, specify in this behalf, and, until any such place is so specified, shall be at the place at which tho head office of the existing bank in relation to which it is a coiresponding new bank, is on the date of the commencement of this Ordinance, located
(2) The general superintendence and direction of the affairs and business of a corresponding new bank shall, until any provision to the contrary is made under any scheme made under section J3, be vested in a Custodian, who shall be the chief executive officer of that bank.
(?) The Chairman of the existing bank holding office as such immediately before the commencement of this Oidinance, shall be the Custodian of the corresponding new bank and shall receive the same emoluments, as ho was receiving immediately before such commencement:
Provided that the Central Government may, if it ig of opinion that it is necessary so to do, appoint any other person as the Custodian of a corresponding new bank and the Custodian so appointed shall receive such emoluments nq the Central Government may specifv in this behalf.
(/) The Custodian shall hold office during the pleasure of the Central Government.
11 (/) Kvery corresponding HPW bank shall, in the discharge of its functions, be guided by MU'h direction's in regard to matters of policy involving public interest as the Centul Government may. after consultation with the Governor of the Reserve Bank, give, 5 of 1908.
Tribunal to have powers of a Civil Court.
Procedure of the Tribunal.
Head office and branches.
Corresponding new bank to be guided by the directions of the Central Gov- Prnmenf 220 THE GAZETTE OF INDIA EXTBAORDINARY [PABT II—
(2) If any question arises whether a direction relates to a matter of_ policy involving public interest, it shall be referred to the Central Government and the decision of the Central Government thereon shall be final.