The Gazette of India
EXTRAORDINARY
PART II—Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 200] NEW DELHI, SATURDAY, OCTOBER 12, 1963/ASVINA 20, 1885
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 12th October 1963
S.O. 2937.—In exercise of the powers conferred by sub-section (2) of section 45 of the Banking Companies Act, 1949, the Central Government, after considering an application made by the Reserve Bank of India under sub-section (1) of that section, hereby makes an order of moratorium in respect of the Cochin Nayar Bank Ltd., Trichur for the period from the 13th October, 1963 to the 12th February 1964 (both days inclusive) and hereby stays the commencement or continuance of all actions and proceedings against that banking company during the period of moratorium, subject to the condition that such stay shall not in any manner prejudice the exercise by the Central Government of its powers under clause (b) of sub-section (4) of section 35 of the said Act or the exercise by the Reserve Bank of India of its powers under section 38 of the said Act.
2 The Central Government hereby also directs that, during the period of moratorium granted to it, the Cochin Nayar Bank Ltd., Trichur shall not, without the permission in writing of the Reserve Bank of India, grant any loan or advance, incur any liability, make any investment or agree to or disburse any payment, whether in discharge of its liabilities and obligations or otherwise, or enter into any compromise or arrangement, except to the extent and in the manner provided hereunder:—
(i) a sum not exceeding 10 per cent, of the total balance in every savings bank or current account or in any other deposit by whatever name called, provided that the sum total of the amounts paid in respect of the accounts standing in the name of any one person (and not jointly with that of any other person) does not exceed Rs. 250/-, and provid- ed further that no amount shall be paid to any depositor who is indebted to the bank in any way;
(ii) the amounts of any drafts or pay orders issued by the said bank and remaining unpaid on the date on which the order of moratorium comes into force;
(iii) the amounts of the bills received for collection on or before the 12th October 1963 and realised before, on or after that date;
J&4 T H it O A " T Ta OF INDIA BXTRAOHDINAR.Y [PA"ilI-"$"g,a(ty] (V> an^expenditure on any other item In so far as It is in the opinion oftbw banking company necessary for carrying on the day-to-day • administration of tne banking company, provided that where me total expenditure on any item in any calendar month exceeds the average montnly expenditure on account ot that Item during the six calendar months preceding the order of moratorium, or if no expenditure has been incuned on account of that item in the past, exceeds a sum of Rs. 35U/-, the permission in writing of the Reserve Bank ot India shall be obtained, belore the additional expenditure is incurred.
3. The Central Government hereby also directs that the Cochin Nayar Bank Ltd., Trichur, may during the period of the moratorium granted to it, make the following further payments, namely, the amounts necessary for repaying loans or advances granted against Government securities or other securities to tne Cochin Nayar Bank Ltd., Tnehur, by the Reserve flank of India or the State Bank ot India or any of its subsidiaries or by any other bank and remaining unpaid on the date on which the order ot moratorium comes into force.
4. The Central Government hereby further directs that during the period of moratorium, the Cochin Nayar Bank Ltd., Trichur, shall be permitted to operate its accounts with the Reserve Bank of India or with any other bank lor the purposes of making the payments aforesaid, provided that nothing in this order shall be deemed to require the Reserve Bank of India or any other bank aforesaid to satisfy itself that the conditions imposed by this order are being observed before any amounts are released in favour of the Cochin Nayar Bank Ltd., Trichur.
5. The Central Government hereby further directs, that the Cochin Nayar Bank I ltd., Trichur may during the period of moratorium return any bills which have, remained unrealised, to the persons entitled to receive them, on a request being made in this behalf by such persons, if the bank has no right or title to, or Interest in, such bills.
6. The Central Government hereby also directs that the Cochin Nayar Bank Iitd., Trichur maj^ release or deliver goods or securities which may be pledged, hypothecated or mortgaged or otherwise charged to it against any loan, cash credit or overdraft:
(1) In any case in which full payment towards all the amounts due from the borrower or borrowers, as the case may be, has been received by the bank, unconditionally; and
(li) in any other case, to such an extent as may be necessary or possible, without reducing the proportions of the margins on the said goods or securities below the stipulated proportions or the proportions which were maintained before the order of moratorium came into force, whichever may be higher.
[No. F. 17(16)-BC/63.]