TheGazette of India
EXTRAORDINARY
PART II—Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 163] NEW DELHI, TUESDAY JUNE 30, 1964/ASADHA 9, 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 26th June 1964
S.O. 2275.—In exercise of the powers conferred by sub-section (2) of section 45 of the Banking Companies Art, 1949, the Central Government, after consider- ing an application made by the Reserve Bank of India under sub-section (I) of that section hereby makes an order of moratorium in respect of the Shree Jadeya Shankarling Bank Ltd., Bijapur tor the period from the 30th June. 1964 to the 29th October 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 Shree Jadeya Shankarling Bank Ltd., BIJapur 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 dis- burse 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 saving 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 orders of moratorium comes, Into force;
(iii) the amounts of the bills received for collection on or before the 29th June 1964 and realised before, on or after that date;
j48 T HE GAZETTE OF INDIA EXTRAORDINARY [rART II-SEC. S (ii)] that it the expenditure in respect of each such suit or appeal "r decree or proceeding Is in excess of Rs. 250/- the permission In writing of the Reserve Bank of India shall be obtained before it is incurred; end(v) any expenditure on any other item in so far as it ia In the opinion of the banking company necessary for carrying on the day-to-day admi- nistration of the banking company, provided that where the total expenditure on any item In any calender month exceeds the average monthly expenditure on account of that item during the six calender months preceding the order of moratorium, or if no expenditure has been incurred on account of that item in the past exceeds a "um of Rs. 250/-, the permission In writing of the Reserve Bank of India shall be obtained before the additional expenditure Is Incurred.
3. The Central Government hereby also directs that the Shree Jadeya Shan- karling Bank Ltd., Bijapur may, during the period of the moratorium granted to it, make the following further payments, namely, the amounts necessary for re- paying loans or advances granted against Government securities or other securi- ties to the Shree Jadeya ShankarllngBahk Ltd., Bijapur by the Reserve Bank of India or the State Bank of India or any of its subsidiaries or by any other bank and remaining unpaid on the date on which the order of moratorium comes Into torce.
4. The Central Government hereby further directs that during the period of moratorium, the Shree Jadeya Shankarling Bank Ltd., Bijapur shall be permitted to operate its accounts with the Reserve Bank of India or with any other bank for the purposes of making the payments" aforesaid provided that nothing in tbia 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 Shree Jadeya Shankar- ling Bank Ltd., Eijapur.
5. The Central Government hereby further directs that the Shree Jadeya Shankar- ling Bank Ltd., Bijapur 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, H the bank has no right or title to, or interest in, such bills.
6 The Central Government hereby also directs that the Shree Jadeya Shankarling Bank Ltd., Bijapur may release or deliver goods or securities whfch may be pledged, hypothecated or mortgaged or otherwise charged, to it against any loan, cash credit or overdraft.
(i) 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
(ii) 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 proporfiorfr~or 'the proportions which were maintained before the order of moratorium came into force, whichever may be higher.
[No. F. irfl6)-BC/64]
B. J. ttEERJEE, Under Secy.
ERRATA
There have been no issue of the Gazette of India Extraordinary, Part II—
Section 3(11), together with Issue TSIo. 132. Page No. 415 and SO. No. 1889.