REGISTERED No. D-(D)-72 The Gazette of India EXTRAORDINARY
PART II—Section 1 PUBLISHED BY AUTHORITY No. 26] NEW DELHI, TUESDAY, APRIL 15, 1980/CHAITRA 26, 1902 Separate paging is given to this Part in order that it may be filed as a separate compilation MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) New Delhi, the 15th April, 1980/Chaitra 26, 1902 (Saka) THE BANKING COMPANIES (ACQUISITION AND TRANS- FER OF UNDERTAKINGS) ORDINANCE, 1980 No. 3 OF I980 Promulgated by the President in the Thirty-first Year of the Republic of India.
An Ordinance to provide for the acquisition and transfer of the undertakings of certain banking companies, having regard to their size, resources, coverage and organisation, in order further to control the heights of the economy, to meet progressively, and serve better, the needs of the development of the economy and to promote the welfare of the people, in conformity with the policy of the State towards securing the principles laid down in clauses (6) and (c) of article 39 of the Constitution and for matters connected therewith or incidental thereto.
WHEREAS Parliament is not in, session and the President in satisfied that circumstances exist which render it necessary for him to take immediate action;
Now, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:—
(193) 194 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
CHAPTER I PRELIMINARY Short 1. (1) This Ordinance may be called the Banking Companies (Acquisition title and and Transfer of Undertakings) Ordinance, 1980.
commencement. (2) It shall come into force at once.
Defini- 2. In this Ordinance, unless the context otherwise requires,— tions.
(a) "banking company" docs not include a foreign company within the meaning of section 591 of the Companies Act, 1956; 1 of 1956.
(b) "corresponding new bank", in relation to an existing bank, means the body corporate specified against such bank in column 2 of the First Schedule;
(c) "Custodian1"' means the person who becomes, or is appointed, a Custodian under section 7;
(d) "existing bank" means a banking company specified in column 1 of the First Schedule, being a company the total of the demand and time liabilities in India of which, as shown in the return as on the 14th day of March, 1980, furnished to the Reserve Bank under section 42 of the Reserve Bank of India Act, 1934 amounts to not less than rupees two hundred crores; 2 of 1934.
(e) words and expressions used herein and not defined but defined in the Banking Regulation Act, 1949, have the meanings respectively assigned 10 of 1949 to them in that Act.
CHAPTER II TRANSFER OF THE UNDERTAKINGS OF EXISTING BANKS Establish- 3. (1) On the commencement of this Ordinance, there shall be constituted ment of such corresponding new banks as arc specified in column 2 of the First Schedule.
corresponding (2) The paid-up capital of every corresponding new bank constituted under new banks sub-section (1) shall, until any provision is made in this behalf in any scheme and busi- made under section 9, be equal to the paid-up capital of the existing bank in ness relation to which it is the corresponding new bank.
(3) The entire capital of each corresponding new bank shall stand vested in, and allotted to, the Central Government.
(4) Every corresponding new bank shall be a body corporate with perpetual succession and a common seal with power, subject to the provisions of this Ordinance, to acquire, hold and dispose of property, and to contract, and may sue and be sued in its name.
(5) 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 10 of 1949.
(1) of section 6 of that Act.
(6) Every corresponding new bank shall establish a reserve fund to which shall be transferred the share premiums and the balance, if -any, standing to 'he credit of the reserve fund of the existing bank in relation to which it is the corresponding new 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. 10 of 1949.
Sic. l] THE GAZETTE OF INDIA EXTRAORDINARY 195
4. On the commencement of this Ordinance, the undertaking of every existing Underbank shall be transferred to, and shall vert in, the corresponding ntw bank. taking of 1 6 existing banks to vest in corresponding new banks.
5. (1) The undertaking or each existing bank shall be deemed to include all General assets, rights, powers, authorities and privileges and all property, movable and effect of immovable, cash balances, reserve funds, investments and all other rights and v e s ne' interests in, or 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 Tndia, 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 Tndia, 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 commencerneint 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 transferring such assets and discharging such liabilities.
(3) Tlie chief executive officer of the. corresponding new bank shall, in exercise of the powers conferred on him by sub-section (2), take af[ 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 may either himself or through any person authorised by him in this behalf realise any asset and discharge any liability of the existing bank.
(4) 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 effectually as i'f 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 new bank.
(5) If, immediately before the commencement of this Ordinance, any suit, appeal or other proceeding of whatever nature in relation to any business of ths undertaking which has been transferred under section 4, 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 contained in this Ordinance but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the corresponding new bank.
196 THE GAZETTK OF INDIA EXTRAORDINARY [PART II—
(6) Nothing in this Ordinance shall be construed as applying to the assets, rights, powers, authorities and privileges and property, movable and immovable, cash balances and investments, in any country outside India (and other rights and interests in, or arising oat or, such property) and borrowings, liabilities and .obligations of whatever kind subsisting immediately before the commencement of this Ordinance, of any existing bank operating in that country if, under the laws in force in that country, it is not permissible for a banking company, owned or controlled by Government, to carry on the business of banking there.
CHAPTER III PAYMENT OF AMOUNT Payment 6. U) Every existing bank shall be given by the Central Government such °f amount in respect of the transfer, under section 4, to the corresponding new amoun . bank of the undertaking of the existing bank as is specified against each such bank in the Second Schedule.
(2) The amount referred to in sub-section (1) shall be given to every existing bank, at its option,—
(a) in cash (to be paid by cheque drawn on the Reserve Bank) in three equal annual instalments, the amount of each instalment carrying interest at the rate of five and a half per cent, per annum from the commencement of J«his Ordinance, or
(b) in saleable or otherwise transferable promissory notes or stock certificates of the Central Government issued and repayable at par, and maturing at the end of—
(i) ten years from the commencement of thi-s Ordinance and carrying interest from such commencement at the rate of six per cent, per annum, or 07) thirty years from the commencement of this Ordinance and carrying interest from such commencement at the rate of seven per cent, per annum, or
(c) partly in cash (to be paid by cheque drawn on the Reserve Bank) and partly in such number of securities specified in sub-clause (/) or sub-clause (//), or both, oT clause (/>), as may be required by the existing bank, or
(d) partly in such number of securities specified in sub-clause (/) of clause (b) and partly in such number of securities specified in sub-clause
(ii) of that clause, as may be required by the existing bank.
(3) The first of the three equal annual instalments referred to in clause (a) of sub-section (2) shall be paid, and the securities referred to in clause (fe) of that sub-section shall be issued, within sixty days from the date of receipt by the Central Government of tlic option referred to in that sub-section, or where no such option has been excrused, from the latest date before which such option ought to have been exercised.
(4) The option lefmed to in sub-section (2) .shall be exercised by every existing bank before the expiry of a period of three months from the commencement of this Ordinance (or within such further time, not exceeding three months, as the Central Government may, on the application of the existing bank, allow) SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 197 and the option so exercised shall be final and shall not be altered or rescinded after it has been exercised.
(5) Any existing bank which omits or fails to exercise the option referred to in sub-section (2), within the time specified1 in sub-section (4), shall be deemed to have opted for payment in securities specified in sub-clause (/) of clause (ft) of sub-section (2).
(6) Notwithstanding anything contained in this section, any existing bank may, before the expiry of three months from the commencement of this Ordinance (or within such further time, not exceeding three months, as the Central Government may, on the application of the existing bank allow) make an application in writing to the Central Government for an interim payment of an amount equal to seventy-five per cent, of the amount of the paid-up capital oE such bank, immediately before the commencement of this Ordinance, indicating therein whether the payment is desired in cash or in scurities specified in sub-section (2), or in both.
(7) The'Central Government shall, within sixty days from the receipt of the application referred to in sub-section (6), make the interim payment to the existing bank in accordance with the option indicated in such application.
(S) The interim payment made to an existing bank under sub-section (7) shall be set off against the total amount payable to such existing bank under this Ordinance and the balance of the amount remaining outstanding after such payment shall be given to the existing bank in accordance with the option exercised, or deemed Lo have been exercised, under sub-section (4) or subsection (5), as the case may be:
Provided that where any patt of this interim payment is obtained by an existing bank in cash, the payment so obtained shall be set off, in, the first instance, against the first instalment of the cash payment referred to in sub-section (2) , and in case the payment so obtained exceeds the amount of the lirst instalment, the excess amount shall be adjusted against the second instalment and the balance of such excess amount, if any, against the third instalment of the cash payment.
CHAPTER IV MANAGEMENT OF CORRESPONDING NEW BANKS
7. (1) The head office of each corresponding new bank shall be at such place Head as the Central Government may, by notification in the Official Gazette, specify office and in this behall', and, until any such place is so specified, shall be at such place at managewhich the head office of the existing bank, in relation to which it is the corres- m e n ' ponding new bank, is on the commencement of this Ordinance, located.
(2) The general superintendence, direction and management of the affairs and business of a corresponding new bank shall vest in a Board of Directors which shall be entitled to exercise ail such powers and do all such acts and things as the corresponding new bank is authorised to exercise and do.
(3) (a) As soon as may be after the commencement of this Ordinance, the Central Government shall, in consultation with the Reserve Bank, constitute the first Board of Directors of a corre?ponding new bank, consisting of not more than seven persons, to be appointed by the Central Government, and every director so appointed shall hold office until the Board of Directors of such corresponding new bank is constituted in accordance with the scheme made under section 9:
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Provided that the Central Government may, if it is of opinion that it is necessary in the interests ot the corresponding new bank so to do, remove a person from the membership of the first Board of Directors and appoint any other person in his place.
(b) Every member of the first Board of Directors (not being an officer of the Central Government or of the Reserve Bank) shall receive such remuneration as is equal to the remuneration which a member of the Board of Directors of the existing bank was entitled to receive immediately before the commencement of this Ordinance.
(4) Until the first Board of Directors is appointed by the Central Government under sub-section (J?), the general superintendence, direction and management of the affairs and business ol a corresponding new bank shall vest in a Custodian, who shall be the chief executive officer of that bank and may exercise all powers and do all acts and things as may be exercised or done by that bank.
( J ) The Chairman of an existing bank holding office as such immediately before the commencement of this Ordinance, shall be the Custodian of the corresponding new bank and shall receive the same emoluments as he was receiving immediately before such commencement:
Provided that the Central Government may, if the Chairman of an existing bank declines to become, or to continue to function as, a Custodian of the corresponding new bank, or, if it is of opinion that it is necessary in the interests of the corresponding new bank so to do, appoint any other person as the Custodian of a corresponding new ban!, and the Custodian so appointed shall receive such emoluments as the Central Government may specify in this behalf.
Explanation.—In this sub-section and in sub-section ( i ) of section 12, the expression "Chairman", in relation to any existing bank, includes the person carrying out the duties of the Chain nan or otherwise functioning as the chief executive officer of that bank.
(6) The Custodian shall hold office during the pleasure of the Central Government, Corres- 8. Every corresponding new bank shall, in the discharge of its functions, be ponding guided by such directions in regard to matters of policy involving public interest new banks a s the Central Government may, after consultation with the Governor of the guided R e s e r V e B a n k ' g i v e " by the directions of the Centraj Government.
Power of 9. (D The Central Government may, after consultation with the Reserve Central Bank, make a scheme for carrying out the provisions of this Ordinance.
SentTo" (2) Tn particular, and without prejudice to the generality of the foregoing make power, the said scheme may provide for all or any of the following matters, scheme. namely:—
(a) the capital structure of the corresponding new bank, so however that the paid-up capital of any such bank shall not be in excess of rupees fifteen crores;
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 199
(6) the constitution of the Board of Directors, by whatever name called, of the corresponding new bank, and all such matters in connection therewith or incidental thereto as the Central Government may consider to be necessary or expedient;
(c) the reams'itulion of any corresponding new bank into two or more corporations, the amalgamation of any corresponding now bank with any other corresponding new bank or with another banking institution, the transfer of Ihv whole or any part of the undertaking of a corresponding new bank to any other banking institution or the transfer of the whole or any part of the undertaking of any other banking institution to a corresponding new bank;
(d) such incidental, consequential and supplemental matters as may be necessary io carry out the provisions of this Ordinance.
(3) Every Boird of Directors of a corresponding new bank, constituted under any scheme mad-: under sub-section d"), shall include—
(a) repr^.vntalives of ihe employees, and of depositors, of such bank, and
(h) such other persons as may represent the interests of each of the following categories, namely, farmers, workers and artisans, to be elected or nominated in such manner as may be specified in the scheme.
(4) The Central Government rmy, after consultation with the Reserve Bank, make a scheme to amend or vary any scheme made under sub-section (1).
(5) Every scheme made by the Central Government under this. Ordinance shall be laid, as soon as may be aflr-r it is nvirie, before each House of Parliament, while it is in session, for a total period of thirty d;>,ys which may be comprised in one session or in two or more successive sessions, and if, before the expiry oF the session, immediately following the session or the successive sessions aforesaid, both Houses a^rcc in making anv modification in, the scheme or boih Houses agree that the scheme should not be nnde, the, scheme shall thereafter have effect only in such modified form or be no cffe:t, as th- ease rmy be; so, however, that an'.v such modification or annulment shall be without p-eindice to Ihe validity of anything previously done under that scheme.
CHAPTER V MISCELLANEOUS 10, (1) TZverv corresponding new bank shall cause its books to be closed C i o s u r e and brlnneed on the 31st day of December cf each year and shali appoint, with of acthe previous approval of th? Reserve Bank, auditors for the audit of its accounts, counts J and dis- (J) J-very auditor of a corresponding new bink shad be a person who is posalot qualified to net as an auditor of a company under section 226 of the Companies profits.
l of 1956. A c t ' 1 9 5 6 a n d s n a ! 1 r e c e i v e s'-'<:n remuneration as the Reserve Bank may fix in consultation with the Central Government.
O) Every auditor shaM be F.upmlied w'y'.h n copy of the annual balmce-shcct and profit ;md loss account and a list of 'all books kept by the corresponding new bank, and it shall be the duty of the auditor to examine the balance-sheet and profit and loss account with the accounts and vouchers relating thereto, and in the performance of his duties, the auditor— iOO THE GAZETTE OF INDIA EXTRAORDINARY [PART U—
(a) shall have, at all reasonable times, aecess to the books, accounts and other documents of the corresponding new bank, (l>) may, at the expense of (he corresponding new bank, employ accountants or other person to assist him in investigating such accounts, and
(c) may, in relation to such accounts, examine the Custodian or any officer or employee of the corresponding new bank.
(4) Every auditor of a corresponding new bank shall make a report to the Central Government upon the annual balance-sheet and accounts and in every such report shall state—
(a) whether, in his opinion, the balance-sheet is a full and fair balancesheet containing all the necessary particulars and is properly drawn up so as to exhibit a true and fair view of the affairs of the corresponding new bank, and in case he had called for any explanation or information, whether it has been given and whether it is satisfactory;
(b) whether or not the transactions of the corrcspondiug new bank, which have come to his notice, have been within the powers of that bank;
(c) whether or not ihe returns received from the offices and branches of the corresponding new bank have been found adequate for the purpose of his audit;
(d) whether the profit and loss account shows a true balance of profit or loss for the period covered by such account; and
(e) any other matter which he considers should be brought to the notice of the Central Government.
(?) The report of the auditor shall be verified, signed and transmitted to the Central Government.
(6) The auditor shall also forward a copy of the audit report to the corresponding new bank and to the Reserve Bank.
(7) After making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds and all other matters for which provision is necessary under any law, or which are usually provided for by banking companies, a corresponding new bank shall transfer the balance oT profits to the Central Government.
f.1?) The Central Government shall cause everv auditor's rcnort amd report on the working and activities of each corresponding new bank to be laid for not less than thirty days before each House of Parliament as soon as may be after each such report is received by the Central Government.
11. For the purposes of the Income-tax Act, 1961, everv corresponding new 43 of 1961 nd' bank shall be deemed to be an Indian company and a company in which the new public are substantially interested, bank deemed to bean Indian company.
Vacation 12. (1) Every person holding office, immediately before the commencement °* . of this Ordinance, as Chairman of an existing bank shall, if he becomes Cusloofflceoi ^. o j t j l e corresponding new bank, be deemed, on such commencement to Chairman, _,, .
e t c have vacated office as such Chairman.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 201
(2) Save as otherwise provided in sub-scctj^j (7), every officer or other employee of an existing bank shall become, on the commencement of this Ordinance, an officer or other employee, as the case may be, of the corresponding new bank and shall hold his office or service in that bank on the same terms and conditions and with the same rights to pension, gratuity and other matters as would have been admissible to him if the undertaking of the existing bank had not been transferred to and vested in the corresponding new bank and continue to do so unless and until his employment in the corresponding new bank is terminated or until his remuneration, terms or conditions are duly altered by the corresponding new bank.
(3) For the persons who immediately before the commencement of this Ordinance were the trustees for any pension, provident, gratuity or other like fund constituted for the officers or other employees of an existing bank, there shall be substituted as trustees such persons as the Central Government may, by general or special order, specify.
14 of 1947. (4) Notwithstanding anything contained in the Industrial Disputes Act, 1947, or in any other law for the time being in force, the transfer of the services of any officer or other employee from an existine bank to a corresponding new bank shall not entitle such officer or other employee to any compensation under this Ordinance or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.
13. (1) Every corresponding new bank shall observe, except as otherwise obllearequired by law, the practices and usages customary among bankers, and, in tions as particular, it shall not divulge any information relating to or to the affairs of tofldeits constituents except in circumstances in which it is, in accordance with law Htyand or practices and usages customary among bankers, necessary or appropriate for the corresponding new bank to divulge such information.
(2) Every director, member of a local board or a committee, or auditor, adviser, officer or other employee of a corresponding new bank shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the Third Schedule.
(3) Every Custodian of a corresponding new bank shall, as soon as possible.
make a declaration of fidelity and secrecy in the form set out in the Third Schedule.
14. Every Custodian of a corresponding new bank shall be deemed to be „, . ,, _ 45 of lftflO OUSLOuian a public servant for the purposes of Chapter TX of the Indian Penal Code. t o b e public servant.
15. (1) All acts done by the Custodian, acting in pood faith, shall, notwith- certain standing any defect in his appointment or in the procedure, be valid. defects not to (.?) No act or proceeding of anv Board of Directors or a local brwd or mm- lnvalimittee of a correspondinc new bank shall be invalid merely on the wound of d a t e the existence of any vacancv in, or defect in the constitution of. such board or Droceed_ committee, as the case may be. Ings.
(3) All acts done by a person acting in eood faith as a director or member of a local board or committee of a corrcspondinp new bank shall be v.nlid, notwithstanding that it may afterwards be discovered that his appointment wns invalid by reason of anv defect or disqualification or had terminated by virtue of any provision contained in any law for the time being in force:
202 THE GAZETTE OF INDIA BXTmQjtDJNAJtY [PART II—
Provided that nothing in this section shall be deemed to give validity to any act by a director or member of a local board or committee ef a corresponding new bank after his appointment has been shown to the corresponding,new bank to be invalid or to have terminated.
Indem- X6. (1) Every Custodian of a corresponding new bank and every (rigger of nity> the Central Government or of the Reserve Bank and evqry officer or wfljer employee of a corresponding new bank, shall be indemnified by suefc bank against all losses and expenses incurred by him in or in relation to the discharge of his duties except such as have been caused by Ms own wjUSul act QT default.
(2) A director or member of a local board or committee of a corresponding new bank shall not be responsible for any loss or expense caused to such bank by the insufficiency or deficiency of thfc value of, or title to any property or security acquired or taken on behalf of the corresponding flew bank, of'by the insolvency or wrongful act of any customer or debtor, or by anything, done in or in relation to the execution of the duties of his oflfice, unless such loss, expense, insufficiency or deficiency was due to any wilful act or default on the part of such director or member.
Construe- ^ A n y r e j e r e n c e t 0 a n y exjsting bank in any law, other than this Ordinance, reference o r *n anv contract or other instrument shall, in so far as it relates to the underto existing taking which has been transferred by section 4, be construed as a reference to banks. the corresponding new bank.
DiBSQlu" 18. No provision of law relating to wmdia<* up of corporations shall apply iian' to a corresponding new bank and no corresponding new bank shall be,placed an liquidation save by order of the Central Government and in such manner as it may direct.
make1 t 0 19- ^ Thp B o 3 r r I o t ^>i rcc to r5 : o f a corresponding new bank may, after regula- consultation with the Reserve Bank and with the previous sanction of the Central tions. Government, make regulations, not inconsistent with the provisions of tb5s Ordinance or any sdieme made thereunder, to provide for ajl nttttcie-'for which nrovision is expedient for the purpose of giving effect to the provisions of this Ordinance,
(2) Tn particular, and wilhnut weiudic* to the K»»er-Jilltv of the fofeoolng cower, the regulations w.v provide for all or any of the following ftftttws, namely:—
(a) the oowers. functions and duties of local boards and restrictions, conditions or limitations, if any. sufofect to which they mav be exercised or reformed the formation and constitution of local committees and comniittees of local boards (including tp« number of members of anv such commitfeeV the r»owers, functions and duties of such committees, the holding of meetings of local committees and committees of local boards and the conduct of business thereat;
(b) the manner in which the business of the local boards shall be transacted and the procedure in connection therewith:
(c) the donation of power* and functions of the- board of rt'rectnrs of a correspondine new bank to tbe f-eneral .manager, director, officer or other employee of tnflt bank;
Sic. ;1] THE GAZETTE OF INDIA «XT«AOHDWARy •*&$ (/i) the conditions or limitatioDs subject'to wfcfcto tijewrrcaponding new baik may appoint advisers, offioetfs or other «!Bpl©yetB arid ft* their remuneration and other terms and coatfitioas ©f service;
(e) the duties and conduct of advisers, officers ,<jr qth^r .eiBî Qyees of the corresponding new bank;
(/) the establishment and maintenance of superannuation, pension, provident or other funds for the beqeflt of officers or other em$lovces .of the corresponding new bank or of the dependants Of such dfficers 6r olner employees and the granting of superannuation allowances, anpflrtfcs and pensions payable out Of such funds;
(g) the conduct and defence of legal proceedings by or against the corresponding new "bank and die manner Of signiagpltJelSiogB;
(/J) the provision of a seal for the. corresponding new bjank.jwjd. Jtye planner and effect of its use;
(0 the.fonn.and manner in which contracts tyndieg«on'&e corfwpuflding new bank may be executed;
(;) the conditions and the requirements subject to n#u«ft iflSWft flf advances may be made or bills may be .discouniUd oj £Vfckm&&'ity4#& .corresponding now hank;
(k) the persons or authorities who shall administer any pension, proVident or other fund constituted for the benefit of officers QJ; othjgr ernRjpyces of the corresponding new bank or their dependants;
i(0 the pr<spaiatian and submtswon of statements ot 'prapMmwB J«f activities and foitmciai statemants of tbe corrwperidtiig m«w:bank *mJ <tile period for which and the time within which such statements and estimates are to be prepared and submitted; and
(m) generally for the efficient conduct of the affairs of the corresponding new bank.
(3) Until any regulation is made under sub-section (1), the articles of association of the existing bank and every regulation, rule, bye-law or order made by the existing bank in force immediately before the commencement of this Ordinance shall be deemedito be1 the regulations made under sub-section (1) and shall have effect accordingly and any reference therein to any authority of the existing bank shall be deemed to be a reference to the corresponding authority of the jcorresponding n*w baak aad until any such -corresponding authority is constituted under this,QF4J©gpce, shall be deemed to refer to'ttile,:Cirtt«ittian.
ID of 1949. 20. (I) In the Banking Regulation Act, 1949,— Amendment of
(a) in section 34A, in sub-section (3), for the words "and any subsi- certain diary bank", the wordp^ figures and brackets '!a awresponding tMW bank enactconstituted under section 3 of the Banking Companies (Acquisition. a,od m e n t s- Transfer df 'Undertakings) Ordinance, 1980, and any subsidiary bank" shall be substituted^
(ft) in section 36AD, in sub-aection C#), forthe words "and any subsidiary bank", the woTd$,.jigures and brackets "a .eoitespoadijig ,aew Ijiank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertaking) Ordinance, 1980, and any tttbsfefiary'tefrtt'^dtt be substituted;
iQA THE GAZETTE OF INDIA EXTRAORDINARY [PART I I - -
(c) in section 51, for the words "or any other banking institution notified by the Central Government in this behalf", the words, figures and brackets "or any corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1980 or any other banking institution notified by the Central Government in this behalf* shall be substituted.
(2) In the Industrial Disputes Act, 1947, in section 2, in clause (bb), for 14 of 1947.
the words "and any subsidiary bank", the words, figures and brackets "a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1980, and any subsidiary bank" shall be substituted.
(3) In the Banking Companies (Legal Practitioners' Clients' Accounts) Act, 1949, in section 2, in clause (a), for the words "and any subsidiary bank", 4B °* l94^ the words, figures, and brackets "a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1980 and any subsidiary bank" shall be substituted.
(4) In the Deposit Insurance and Credit Guarantee Corporation Act, 1961, 47 of 1961.
in section 2, in clause (<*<•), after the figures "1970", the words, figures and brackets "or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1980" shall be inserted.
(5) In the State Agricultural Credit Corporations Act, 1968, in section 2, 60 of 1968.
in clause (ii), after the figures "1970", the words, figures and brackets "or a corresponding new bank constituted under section 3 of the Banking Companies . (Acquisition and Transfer of Undertakings) Ordinance, 1980" shall be inserted.
THE FIRST SCHEDULE (See sections 2, 3 and 4) Existing bank Corresponding new bank Column 1 Column 2 The Andhra Bank Limited . . Andhra Bank Corporation Bank Limited . . Corporation Bank The New Bank of India Limited . . New Bank of India The Oriental Bank of Commerce Limited Oriental Bank of Commerce The Punjab and Sind Bank Limited . . Punjab and Sind Bank Vijaya Bank Limited . . Vijaya Bank.
!3*t. 1] "THE GAZETTE OF INDIA EXTHAOttDINAJR^ 263 THE SECOND SCHEDULE (See section 6) Name of existing bank Amount (in lakhs of rupees) The Andhra Bank Limited . . 610 Corporation Bank Limited . . 180 The New Bank of India Limited . . 510 The Oriental Bank of Commerce Limited 100 The Punjab and Sind Bank Limited . . 210 Vijaya Bank Limited . . 240 THE THIRD SCHEDULE ISee sub-sections (2) and (3) of section 13] DECLARATION OF FIDELITY AND SECRECY I( > d0 hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as Custodian, Director, member oE Local Board, member of Local Committee, auditor, adviser, officer or other employee (as the case may be) of the* and which properly lelate to the office or position in the said* held by me.
I further declare that I will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the* or to the affairs of any person having any dealing with the* ;
nor will 1 allow any such person to inspect or have access to any books or documents belonging to or in the possession of the* and relating to the business of the* or to the business of any person having any dealing with the* *Nume of corresponding new bank to be filled in.
N. SANJIVA REDDY.
President.
R. V. S. PERI SASTRI, Secy, to the Govt, of India.
" P R I N T S 11V THE GENE11AL MA-IAOEH. GOVERNMENT OP INDIA PRESR, MINTO HO Ml NEW DELHI AND PUBLISHED UV THE CONTROLLER OV FUHLTC ATTONS, DELHI, 1980