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The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (ii)

PUBLISHED BY AUTHORITY

No. 112] NEW DELHI, WEDNESDAY, APRIL 21, 1964/VAISAKHA 2, 1886

Separate paging is given to this part in order that it may be filed

as a separate compilation

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 22ml April, 1964

S.O. 1423.—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 Southern Bank Ltd., Calcutta for the period from the 23rd April, 1964 to the 23rd August, 1964 (both days in- clusive) 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 Southern Bank Ltd., Calcutta 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% 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 provided 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 22nd April, 1964 and realised before, on or after that date;

is In excess of Hs. 250/- the permission in writing of the Reserve Bank of India shall be obtained before it is incurred; and

(v) any expenditure on any other item in so far as it is in the opinion of the banking company necessary for carrying on the day-to-day administra- tion of the banking company, provided that where the total expendi- ture on any item in any calendar month exceeds the average monthly expenditure on account of that item during the six calendar montha preceding the order of moratorium, or if no expenditure has been incurred on account of that item in the past exceeds a sum of RB, 230/-, the permission in writing of the Reserve Bank of India shall be obtain- ed before the additional expenditure Is incurred.

3. The Central Government hereby also directs that the Southern Bank Ltd., Calcutta may, during the period of the moratorium granted to it, make the follow- ing further payments, namely, the amounts necessary for repaying loans or advances granted against Government securities or other securities to the Southern Bank Ltd.. Calcutta by the Reserve Bank of India or_the State Bank of India or any of itfl subsidiaries or any other bank and remaining unpaid on the date on which the order of moratorium comes into force.