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REGISTERED No. D. (D.N.)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (ii)

PUBLISHED BY AUTHORITY

No. 368] NEW DELHI, WEDNESDAY, AUGUST 24,1983/BHADRA 2,1905 Separate Paging is given to this Part in order that it may be filed as a separate compilation

(1)

631 GI/83

MINISTRY OF FINANCE

(Department of Economic Affairs)

(Banking Division)

ORDER

New Delhi, the 16th August, 1983

S O 615(E).—tn exercise of the powers confer- red by sub-section (2) of section 45, read with clause (zb) of section 56 of the Banking R e l a- tion Act, 1949 (10 of 1949), ths Central Govern- ment, after considering the application made by the Reserve Bank oE India under sub-section (1) of th said section 45, hereby makes an order of mora- torium in respect of the Dadhich Sahakari Bank Ltd., Malad, Bombay, hereinafter referred to as the Co-operative Bank); for the period from the close of business on the 16th August 19S3 upto and inclusive of the 15th February, 1984 staving the

a

(v) any expenditure on any other item insofar as

it is in the opinion if the Co-operative Bank neces-

sary for carrying on the day-today administration

of the Co-operative Bank :

commencement or continuance of all actions and proceedings against the Co-operative Bank during the period of moratorium, subject to the condition that such stay shall not in any manner prejudice the exercise by the Government of Maharashtra Co-operative Societies Act, 1960.

2. The Central Government hereby directs that, during the period of the moratorium granted to it, the Co-operative Bank shall not, without the prior permission in writing of the Reserve Bank of India, grant any loan, make or renew any advance, alienate or dispose of any assets of the bank, incur any liability, make any investment or make or agree to make any payment, whether in discharge of its liabilities or obligations or otherwise:, or enter into any compromise or arrangement, except mak- ing of payments, or incurring of expenditure, as the case may be. to the extent and. in the manner provided hereuncbr :—

(i) Out of the balance in i>Aery savings bunks or current account or in any other deposit account, by whatever name called, a turn_not exceeding the following :—

Deposit amount Amount rmyable

Upto Rs. 50

In full

About Rs. 50 10 per cent of the deposit or Rs. 50 whichever

is higher

Provide ihat th^. timi total of 1hc amount" ;-nid in respect of the accounts ;ri;.';idipg in the narre of any one person (and not jointly wiih that of any other person) docs not exfed 10 per cent of total ,deposit, or Rs. 50 whichever is higher :

Provided further that no amount shall be paid to any depositor who is indebted to the Co-opera- tive Bank in any way;

(ii) the amounts of any drafts or pay orders or cheques issued by the Co-operr.itive Bank and re- maining unpaid on the date on which the order of moratorium comes into force;

(iii) the amounts of the bills received for collec- tion on or before J 6th August, 1983 whether reali- sed before, on or after that date;

(iv) any expenditure which has necessarily to be incurred in connection with any suits or appeals filed by or against, or decree obtained by or against, the Co-operative Bank, or for realising any amounts du?. to it :

Provided that if the expenditure in respect of each such suit or appeal or decree is in excess of Rs, 250, the permission in writing of the Reseive Bank of Tndia shall be obtained before the expen- diture is incurred; and

Provided that where the total expenditure on any item in any calendar month exceeds the ave- rage monthly expenditure on account of that item during the six calendar months preceding the order of moratorium, or, where no expenditure has been incurred on account of that item during the said period and the expenditure on such item exceeds the sum of Rs. 250, the permission in writing of the Reserve Bank of Tndia shall be obtained before the expenditure is incurred.

3. The Central Government hereby also directs that, during the period of moratorium granted to it, the Co-operative B a n k-

fa) may make the following mrther payments, namely, Ihc amounts necessary for repay- ing loans or advance granted against Government securities or other securities lo 1h-i Co-operative Bank by the Govern- ment of Maharashtra or the Maharash- tra State Co-operative Bank Ltd. or the Stare Bank of India or any of its subsi- diaries or by any other bank and remain- ing unpaid on the date on which the order of moratorium come into force;

(b) may operate its accounts with the Maha- rashtra Stale Co-operative Bank Ltd., or with any other bank for the purpose of making the payments aforesaid :

Provided that nothing in this order shalt be deemed to require the Maharashtra State Co-opera- tive Bank Ltd. or such other bank to satisfy itself that the conditions imposed by this order are being observed before any amounts are released in fa- vour of the Co-operative Bank ;

(c) may return any bills which nave remained unrealized to the persons entitled to re- ceive them on a request being made in this behalf by such persons, if the Co- operative Bank has no right or title to, or interest in such bills;

(d) may release or deliver goods or securities which have been pledged, hypothecated or mortgaged or otherwise charged to it against any loan, cash credit or over- draft, in the manner and to the extent—

(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 Co-operative Bank, unconditionally, and

which were maintained before the order of moratorium came into force, which- ever may be higher.

(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 stinulated proportions, or the proportions

[No. 8|11|83-Ad AMAR SINGH, Under Secy.

PRINTED BV THE MANAGER, COVT. Or- INDIA PRBSS, KING ROAD, NEW D E L H t U O OW

AND PUBLISHED BV THE CONTROLLER OP PUBLICATIONS, DELHI-110054, 1983