The Gazette of India
EXTRAORDINARY
PUBLISHED BY AUTHORITY
NEW DELHI, SATURDAY, SEPTEMBER 27, 1947
GOVERNMENT OF INDIA
MINISTRY OF LAW
New Delhi, the 27th September 1947
ORDINANCE No. XX of 1917
AN.
ORDINANCE
to enable t e m p o r a ry assistance to be given to certain banking companies in the
Provinces of East Punjab and Delhi.
WHEREAS an emergency has arisen which makes it necessary to provide for the giving of temporary assistance to certain banking companies in the Pro- vinces of East Punjab and Delhi,
Now, THEREFORE, in exercise of the powers conferred by section 42 of the Government of India Act, 1935 (26 Geo ,5, c 2), as adapted by the India (Provisional Constitution) Order, 1947, the Governor-General is pleased to make and promulgate the following Ordinance —
1. Snort title, extent, application and commencement.—(1) This Ordinance may be calledtheBankingCompanies(EastPunjabandDelhi)Ordinance, 1947.
(2) It extends to all the Provinces of India, but applies only to, and in rela- tion to, banking companies the registered offices of which are situated in the Province of East Punjab or the Province of Delhi.
(3) It shall come into force at once 2. Interpretation.—In this Ordinance.—
(a) "banking cornpany" has the meaning assigned to it in section 277F of the Indian Companies Act, 1918 (VII of 1918);
(b) "initial order" means an order first made under section 3 in res- pect of a banking company;
(c) "prescribed' means prescribed by rules made under section 0; (d) "Reserve Bank" meant the Reserve Bank of India.
3. Power to order moratorium in certain cases —On application in writing made to it in this behalf by a banking company to which this Ordinance applies, the Central Government f it considers it to be in the public interest so to do, may, by notification in the official Gazette, make an order, which shall be binding on all Courts, staying the commencement or continuance of all actions and proceedings against the company for a period of three months, and may, by a like order which shall be similarly binding extend such period
4. Obligations of banking companies during moratorium.—While an initial order in in force, the banking company to which it relates—
JU24 THE GAZETTE OF INDIA EXTEAOliDiN Alii, BEPT. 27, 1947. that he has H current or deposit account wiin a bianeii oi the company situated outside tne iiovinces oi Inuiu ..ma uu to me amount tnereoi; [b) bhuli uut accept an_y uepo^iLS, vvnetlier in cunenij oi uepo account;(cj shall not, save a& provided in cLause (u.) and sa\e ioi the purpose oi meeting its normal lunmug expenaeb, dispose oi di±^ oi its u&hetb.
Explanation.—-For the purposes or tint, section 'montn moans a, penod of thirty days, the hrnt such penud commencing on Uie date ol the iiotmoti- tion of the order under section y.
0. Power to make advances W) banking companies.—(1) On application in writing made to it in this behal] |>j u bunking company m respect oi which uu mitia} order ib hi torcti, the Central Government may advHUi-e to the com- pany auch amount u" the Genual Govwnincnt oouaidetH necesBary to enable th" company to meet the demands payablo by it under olaust; (aj oi section 4.
(2) During the period oi an imuai order and oi an uxtoiiding order, it any, under section li, an advance inadu under this auction bhall bo tree of interest, but thereafter interest at the rate of three pei centum per annum Hhall be payable thereon, and the advance bhall be repayable on such terms and condi- tions as the Central Government ma^y in each t'aso think lit to impose, having regard to the other obligations oi the banking company.
(3) Where a banking company to which an advance has been made under this seotion is wound up, any sumt, due to the I'entwil Government in respect of such advance shall, subject only Lo the prior chum of the Eunorvo Bank or any banking company in respect oi any loan OJ advance made by it before the commencement of this Ordinance to the banking company being wound up, be a first charge on the assets oi the company.
6. Accounts and returna.—JUver_y banking company in respect ot which an order has been made under section 0 whall, while the order lemains in force and until any advanoe made to it under hection 5 together, with the inteiest thereon is fully repaid, maintain such nccuuntt), and submit to the Hosorve Bank such true returns at such inteivaJs, ws ma^ bo prescribed.
7. Penalties.—if any provision oi tins Ordinance is contravened or if any default in made in complying with unv requirement thereoi, every diioctor and other officer oi the banking company who IH knowingly a party to the contravention or deiault Bhall,—
(a) where the contravention is a contravention of the provisions of clause (c) of section 4, or is in respect oi the submission of a return which ia false in any material particular, bo punishable with imprisonment ior a term whioh may extend to three years and shall also be liable to fine;
(b) in any other case, be punishable with line not exceeding five hundred rupees, or where the contravention or default is a continuing one, with a further line not exceeding fifty rupeeh for every day during which it oonttnuei.
8. Cognizance of oftences.—No Court Hhall take cognizance of an offence punishable under section 7 except upon complaint in writing made by n person authorised in this behalf by the Central Government or the Reserve Bank, and no Court inferior to that of a Presidency Magistrate or a Magistrale of the first class shall try any such offence,
9. Power 1<0 male rules.—The Central Government may, by notification in the official Gazette, make rules for carrying out the purposes of this Ordinance, 10. Effect ol eatplry of Ordinance.—On the expiry of this Ordinance, section 6 of the General Clauses Act, 1897 (X of 1897) shall apply as if this Ordinance were an enactment then repealed by a Central Act.
MOUNTBATTEN OP BUEMA,