Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970

1.Short title and commencement.-

(1) This Act may be called the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.

(2) The Provisions of this Act (except section 21, which shall come into force on the appointed day) shall be deemed to
have come into force on the 19th day of July, 1969.

2.Definitions.-

In this Act, unless the context otherwise requires,------

(a) "appointed day" means the 14th day of February, 1970 (3 of 1970), being the day on which the Banking Companies
(Acquisition and Transfer of Undertakings) Ordinance, 1970, was promulgated;

(b) "banking company" does not include a foreign company 5 within the meaning of section 591 of the Companies Act,
1956 (1 of 1956);

(c) "commencement of this Act" means the 19th day of July, 1969;

(d) "corresponding new bank", in relation to an existing bank, means the body corporate specified against such bank in
column 2 of the First Schedule;

(e) "Custodian" means the person who becomes, or is appointed, a Custodian under section 7;

(f) "existing bank" means a banking company specified in column 1 of the First Scheduled, being a company the deposits
of 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;

(g) "Schedule" means a Scheduled to this Act;

(h) words and expressions used herein and not defined but defined in the Banking Regulation Act, 1949, have the
meanings respectively assigned to them in that Act.

Transfer Of The Undertakings Of Existing Banks Chapter II

3.Establishment of corresponding new banks and business thereof.-

(1) On the commencement of this Act, there shall be constituted such corresponding new banks as 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 9, 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 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 Act, 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 (10 of 1949), and may engage in one or more forms of business specified in sub-
section (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 the credit of the reserve of the reserve fund of the existing bank in relation to which it is the
corresponding new bank, and such further sum, if any, as may be transferred in accordance with the provisions of section
17 of the Banking Regulation Act, 1949 (10 of 1949).

4.Undertaking of existing banks to vest in corresponding new banks.-

On the commencement of this Act, the undertaking of every existing bank shall be transferred to, and shall vest in, the
corresponding new bank.

5.General effect of vesting.-

(1) 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 funds, investments and all other rights and interests in,
or arising out of, such property as were immediately before the commencement of this Act 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 or 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 relating to the
undertaking.

(2) If, according to the laws of any country outside India, the provisions of this Act 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 affaires of the existing bank in relation to such asset or liability shall, on and from the
commencement of this Act, 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) 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 may either himself or through any person authorized by him in this behalf realize
any asset and discharge any liability of the existing bank.

(4) Unless otherwise expressly provided by this Act, 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 Act and to which the existing bank is a party or which are in favor of the existing bank shall be of
as full force and effect against or in favor of the corresponding new bank, and may be enforced or acted upon as fully and
effectually 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 favor of the corresponding new bank.

(5) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any business of the
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 Act but the suit, appeal or other proceeding may be continued, prosecuted and
enforced by or against the corresponding new bank.

(6) Nothing in this Act 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 out of, such property) and borrowings, liabilities and obligations of whatever kind subsisting at the commencement
of this Act, of any existing bank operating in the 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 Compensation

6.Payment of compensation.-

(1) Every existing bank shall be given by the Central Government such compensation in respect of the transfer, under
section 4, to the corresponding new bank of the undertaking of the existing banks as is specified against each bank in the
Second Schedule.

(2) The amount of compensation 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 installments, the amount of
each installment carrying interest at the rate of four per cent per annum form the commencement of this Act, 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 this Act and carrying interest from such commencement at
the rate of four and a half per cent per annum, or

(ii) thirty years from the commencement of this Act and carrying interest from such commencement at
the rate of five and a half 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-clauses (i) or sub-clause (ii), or both, of clause (b), as may be required by the existing bank, or

(d) partly, in such number of securities specified in sub-clause (i) 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 installments referred to in clause (a) of sub-section (2) shall be paid, and the
securities referred to in clause (b) of that sub-section shall be issued, within sixty days from the date of receipt by the
Central Government of the option referred to in that sub-section, or where no such option has been exercised, from the
latest date before which such option ought to have been exercised.

(4) The option referred to in sub-section (2) shall be exercised by every existing bank before the expiry of a period of three
months from the appointed day (or within such further time, not exceeding three months, as the Central Government may,
on the application of the existing bank, allow) 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 specified in
sub-section (4), shall be deemed to have opted for payment in securities specified in sub-clauses (I) of clause (b) of sub-
section (2).

(6) Notwithstanding anything contained in this section, any existing bank may, before the expiry of three months from the
appointed day (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 of such bank, as on the commencement of
this Act, indicating therein whether the payment is desired in cash or in securities 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.

(8) The interim payment made to an existing bank under sub-section (7), shall be set off against the total amount of
compensation payable to such existing bank under this Act and the balance of the compensation remaining outstanding
after such payment shall be given to the existing bank in accordance with the option exercised, or deemed to have been
exercised, under sub-section (4) or sub-section (5), as the case may be:

Provided that where any part of the 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 installment of the cash payment referred to in sub-section (2), and in
cash the payment so obtained exceeds the amount of the first installment, the excess amount shall be adjusted against
the second installment and the balance of such excess amount if any, against the third installment of the cash payment.

(9) Any payment purported to have been made to an existing bank under sub-section (3) of section 15 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1969 (22 of 1969), shall be deducted by the Central
Government from the amount of the interim payment made to such existing bank under sub-section (7), or where no such
interim payment has been made, from the total amount of the compensation due to such existing bank, and the amount so
deducted shall be paid by the Central Government to the corresponding new Bank.

Chapter IV Management Of Corresponding New Banks

7.Head office and management.-

(1) The Head Office of each corresponding new bank shall be at such place as the Central Government may, by
notification in the Official Gazette, specify in this behalf, and, until and such place is so specified, shall be at such place at
which the head office of existing bank, in relation to which it is the corresponding new bank, is one the commencement of
this Act, 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 all such powers and do all such acts and things as the
corresponding new bank is authorized to exercise and do.

(3) (a) As soon as may be after the appointed day, the Central Government shall, in consultation with the Reserve Bank,
constitute the first Board of Directors of a corresponding 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:

Provided that the Central Government may, if it is of opinion that it is necessary in the interests of he 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 Act.

(4) Until the first Board of Directors is appointed by the Central Government under sub-section (3), the general
superintendence, direction and management of the affairs and business of 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.

(5) The Chairman of an existing bank holding office as such immediately before the commencement of this Act, 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
functions 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 bank so to do,
appoint any other person as the Custodian of a corresponding new bank so, to do, appoint any other person as the
Custodian of a corresponding new bank and the Custodian so appointed shall receive such emoluments as the Central
Government may specify in this behalf.

(6) The Custodian shall hold office during the pleasure of the Central Government

8.Corresponding new banks to be guided by the directions of the Central Government.-

Every corresponding new bank shall, in the discharge of its functions, be guided by such directions in regard to matters of
policy involving public interest as the Central Government may, after consultation with the Governor of the Reserve Bank,
give.

9.Power of Central Government to make scheme.-

(1) The Central Government may, after consultation with the Reserve Bank, make a scheme for carrying out the
provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, the said scheme may provide for all or any
of the following matters, 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:

(b) 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 to expedient;

(c) the reconstitution of any corresponding new bank into two or more corporations, the amalgamation of any
corresponding new bank with any other corresponding new bank or with another banking institution, the transfer
of the 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 to carry out the provisions of
this Act.

(3) Every Board of Directors of a corresponding new bank, constituted under any scheme made under sub-section (1)
shall include--

(a) representatives of the employees, and of depositors, of such bank, and

(b) 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 may, 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 Act shall be laid, as soon as may be after it is made,
before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one
session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session
immediately following both Houses agree in making any modification in the scheme or both Houses agree that the
scheme should not be made, the scheme shall thereafter have effect only in such modified from or be of no effect, as the
case may be; so, however that any such modification or annulment shall be without prejudice to the validity of anything
previously done under that scheme.

Chapter V Miscellaneous

10.Closure of accounts and disposal of profits.-

(1) Every corresponding new bank shall cause its books to be closed and balanced on the 31st day of December of each
year and shall appoint, with the previous approval of the Reserve Bank, auditors for the audit of its accounts.

(2) Every auditor of a corresponding new bank shall be a person who is qualified to act as an auditor of a company under
section 226 of the Companies Act, 1956, and shall receive such remuneration as the Reserve Bank may fix in
consultation with the Central Government

(3) Every auditor shall be supplied with a copy of the annual balance-sheet and profit and 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-----

(a) shall have, at all reasonable times, access to the books, accounts and other documents of the
corresponding new bank.

(b) may, at the expense of the corresponding new bank, employ accountants or other persons 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 corresp0nding 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 balance-sheet containing al, 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 corresponding new bank, which have come to his notice, have been
within the powers of that bank;

(c) whether or not the returns received from the offices and branches of the corresponding new bank have been
found adequate for the purposes 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.

(5) 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 superannuating
funds and all other matters for which provision is necessary under any law, or which are usually provided for by banking
companies, a corresp9nding new bank shall transfer the balance of profits to the Central Government.

(8) The Central Government shall cause every auditor's report and 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.Corresponding new bank deemed to be an Indian company.-

For the purposes of the Income-tax Act, 1961 (43 of 1961), every corresponding new bank shall be deemed to be an
Indian company and a company in which the public are substantially interested.

12.Removal of Chairman from office.-

(1) Every person holding office, immediately before the commencement of this Act, as Chairman of an existing bank shall,
if he becomes Custodian of the corresponding new bank, he deemed, on such commencement, to have vacated office as
such Chairman.

(2) Save as otherwise provided in sub-section (1), every officer or other employee of an existing bank shall become, on
the commencement of this Act, 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 Act 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.

(4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 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 existing bank to a corresponding new
bank shall not entitle such officer or other employee to any compensation under this Act 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.Obligations as to fidelity and secrecy.-

(1) Every corresponding now bank shall observe, except as otherwise required by law, the practices and usages
customary among bankers, and in particular, it shall not divulge any information relating to or to the affairs of its
constituents except in circumstances in which it is, in accordance with law 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.Custodian to be public servant.-

15.Certain defects not to invalidate acts or proceedings.-

(1) All acts done by the Custodian, acting in good faith, shall, notwithstanding any defect in his appointment or in the
procedure, be valid.

(2) No act or proceeding of any Board of Directors or a local board or committee of a corresponding new bank shall be
invalid merely on the ground of the existence of any vacancy in, or defect in the constitution, of, such board or committee,
as the case may be.

(3) All acts done by a person acting in good faith as a director or member of a local board or committee of a
corresponding new bank shall be valid, notwithstanding that it may afterwards be discovered that his appointment was
invalid by reason of any defect or disqualification or had terminated by virtue of any provision contained in any law or the
time being in force:

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 of a corresponding new bank after his appointment has been shown to the corresponding new bank to be
invalid or to have terminated.

16.Indemnity.-

(1) Every Custodian of a corresponding new bank and every officer of the Central Government or of the Reserve Bank
and every officer or other employee of a corresponding new bank, shall be indemnified by such 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 his own
willful act or 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 the value of, or title to, any property or security
acquired or taken on behalf of the corresponding new bank, or 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 office, unless such loss, expenses,
insufficiency or deficiency was due to any willful act or default on the apart of such director or member.

17.References to existing banks on and from the commencement of this Act.-

Any reference to any existing bank in any law, other than this Act, or in any contract or other instrument shall, in so far as
it relates to the undertaking which has been transferred by section 4, be construed as a reference to the corresponding
new bank.

18.Dissolution.-

No provision of law relating to winding up of corporations shall apply to a corresponding new bank and no corresponding
new bank shall be placed in liquidation save by order of the Central Government and in such manner as it may direct.

19.Power to make regulations.-

(1) The Board of Directors of a corresponding new bank may, after consultation with the Reserve Bank and with the
previous sanction of the Central Government, make regulations, not inconsistent with the previsions of this Act or any
scheme made thereunder, to provide for all matters for which provision is expedient for the purpose of giving effect to the
provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, the regulations may provide for all or any
of the following matters, namely :-

(a) the powers, functions and duties of local boards and restrictions, conditions or limitations, if any, subject to
which they may be exercised or performed, the formation and constitution of local committees and committees
of local board (including the number of members of any such committee), the powers, functions and duties of
such committees, the holding of meetings of local committees and committees of local boards and the conduct
the business thereat;
 (b) the manner in which the business of the local boards shall be transacted and the procedure in connection
therewith;

(c) the delegation of powers and functions of the board of directors of a corresponding new bank to the general
manager, director, officer or other employee of that bank;

(d) the conditions or limitation subject to which the corresponding new bank may appoint advisers, officers or
other employees and fix their remuneration and other terms and conditions of service;

(e) the duties and conduct of advisers, officers or other employees of the corresponding new bank;

(f) the establishment and maintenance of superannuation, pension, provident or other funds for the benefit of
officers or other employees of the corresponding new bank or of the dependants of such officers or other
employees and the granting of superannuation allowances, annuities and pensions payable out of such funds;

(g) the conduct and defense of legal proceedings by or against the corresponding new bank and the manner of
signing pleadings;

(h) the provision of a seal for the corresponding new bank and the manner and effect of its use;

(i) the form and manner in which contracts binding on the corresponding new bank may be executed;

(j) the conditions and the requirements subject to which loans or advances may be made or bills may be
discounted or purchased by the corresponding new bank;

(k) the persons or authorities who shall administer any pension, provident or other fund constituted for the
benefit of officers or other employees of the corresponding new bank or their dependants;

(l) the preparation and submission of statements of programmes of activities and financial statements of the
corresponding new bank and the 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 shall, if in force at the commencement of this Act, be deemed to be 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 corresponding new bank and until
any such corresponding authority is constituted under this Act, shall be deemed to refer to the Custodian.

Comment: But mere reference to the rule, even if it mentions grounds for compulsory retirement, cannot be regarded as
sufficient for treating the order of compulsory retirement as an order of punishment. In such a case, the order can be said
to have been passed in terms of the rule and, therefore, a different intention cannot be inferred. So also, if the statement
in the order refers only to the assessment of his work and does not at the same time cast an aspersion on the conduct or
character of the Government servant, then it will not be proper to hold that the order of compulsory retirement is in reality
an order of punishment. Whether the statement in the order is stigmatic or not will have to be judged by adopting the test
of how a reasonable person would read or understand it. Allahabad Bank Officers Association v. Allahabad Bank. AIR
1996 SUPREME COURT 2030

20.Amendment of certain enactments.-

(1) In the Banking Regulation Act, 1949 (10 of 1949),

(a) in section 34A, in sub-section (3), for 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) Act, 1970, and any subsidiary bank" shall be substituted;

(b) in section 36AD, in sub-section (3), for 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) Act, 1970, and any subsidiary bank" shall be substituted;
 (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) Act, 1970, or any other banking institution
notified by the Central Government in this behalf" shall be substituted;

(d) in the Fifth Schedule, in Part I of paragraph 1, in clause (e), the Explanations shall be deemed never to have
been inserted.

(2) In the Industrial Disputes Act, 1947 (14 of 1947), in section 2, in clause (bb), for 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) Act, 1970, and any subsidiary bank" shall be substituted.

(3) In any Banking Companies (Legal Practitioners' Clients' Accounts) Act, 1949 (46 of 1949), in section 2, in clause (a),
for 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) Act, 1970, and any subsidiary bank" shall
be substituted.

(4) In the Deposit Insurance Corporation Act, 1961 (47 of 1961),------

(a) in section 2,----------

(i)after clauses (c), the following clauses shall be inserted namely:-

'(ee) "Corresponding new bank" means a corresponding new bank constituted under section 3 of the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970;

(ii) in clause (g),

(a) for the words "or a banking company", the words "a corresponding new bank or a
banking company", and

(b) for the words "with a banking company", the words "with a corresponding new bank or
with a banking company",shall be substituted;

(iii) in clause (i), after the words "banking company", the words "or a corresponding new bank" shall
be inserted;(b) section 13 shall be re-numbered as sub-section (1) therefore and after sub-section (1)
as so re-numbered, the following sub-section shall be inserted, namely:-

"(2) The provisions of clauses (a), (b), (c), (d) and (h) (5) of sub-section (1) shall apply to a
corresponding new bank as they apply to a corresponding new bank as they apply to a banking
company."

(5) In the State Agricultural Credit Corporation Act, 1968 (60 of 1968),--------

(a) in section 2, after clause (i), the following clause shall be inserted, namely :-'(ii) "corresponding new bank"
means a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970;';

(b) after the words "subsidiary banks" or "subsidiary bank", as the case may be, occurring in clause (d) of sub-
section (3) of section 5, in clause (b) of section 9 and in the proviso to section 18, the words "corresponding
new banks" or "corresponding new bank", as the case may be, shall be inserted.

21.Repeal and savings.-

(1) The Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1970 (3 of 1970), is hereby repealed.

(2) Notwithstanding such repeal and notwithstanding any judgment, decree or order of any court or tribunal,-----

(a) any action taken, or purported to have been taken, or anything done, or purported to have been done,
between the 19th day of July, 1969, and the 10th day of February, 1970, by any corresponding new bank
purported to have been constituted under the Banking Companies (Acquisition and Transfer of Undertakings)
Ordinance, 1969 (8 of 1969), or the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969
(22 of 1969), or by any person purporting to act on behalf of such bank and any right, obligation or liability
acquired or incurred, between the said dates, by or on behalf of such corresponding new bank shall be deemed
to have been taken, done, acquired or incurred under the provisions of this Act by or on behalf of the
corresponding new bank constituted thereunder.

(b) Any action taken, or purported to have been taken, or anything done, or purported to have been done,
between the 10the day of February, 1970, and the appointed day, by an existing bank or by any person acting
on behalf of such bank, and any right, obligation or liability acquired or incurred, between the said dates, by or
on behalf of such existing bank shall be deemed to have been taken, done, acquired or incurred under the
provisions of this Act by or on behalf of the corresponding new bank constituted thereunder :

(c) Anything done or any action taken, including any order made, notification issued or directions given under
the Banking Companies (Acquisition and Transfer and Undertakings) Ordinance, 1970, shall be deemed to
have been done, taken, made, issued or given, as the case may be, under the corresponding provisions of this
Act.

(3) Any suit, appeal or other proceedings of whatever nature instituted on or after the 19th day of July, 1969, by
or against a corresponding new bank purported to have been constituted by the Banking Companies
(Acquisition and Transfer of Undertakings) Ordinance, 1969 (8 of 1969), or the Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1969 (22 of 1969), shall not abate, be discontinued, or be, in any way,
prejudicially affected by reason of the expiry of the said Ordinance or the invalidation of the said Act, as the
case may be, but such suit, appeal or other proceedings may be continued, prosecuted and enforced by or
against the corresponding new bank as if such suit, appeal or other proceeding had been instituted by or
against the corresponding new bank constituted under this Act.