Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
No: 40 Dated: Apr, 15 1980
THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980
ACT NO. 40 OF 1980
An Act to provide for the acquisition and transfer of the undertakings of certain banking companies, having regard to their size, resources, coverage and organisation, in order further to control the heights of the economy, to meet progressively, and serve better, the needs of the development of the economy and to promote the welfare of the people, in conformity with the policy of the State towards securing the principles laid down in clauses (b) and (c) of article 39 of the Constitution and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Thirty-first Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. Short title and commencement.—(1) This Act may be called the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
(2) It shall be deemed to have come into force on the 15th day of April, 1980.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “banking company” does not include a foreign company within the meaning of section 591 of the Companies Act, 1956 (1 of 1956);
(b) “corresponding new bank”, in relation to an existing bank, means the body corporate specified against such bank in column 2 of the First Schedule;
(c) “Custodian” means the person who becomes, or is appointed, a Custodian under section 7;
(d) “existing bank” means a banking company specified in column 1 of the First Schedule, being a company the total of the demand and time liabilities in India of which, as shown in the return as on the 14th day of March, 1980, furnished to the Reserve Bank under section 42 of the Reserve Bank of India Act, 1934 (2 of 1934), amounts to not less than rupees two hundred crores;
(da) “prescribed” means prescribed by regulations made under this Act;
(e) words and expressions used herein and not defined but defined in the Banking Regulation Act, 1949 (10 of 1949) have the meanings respectively assigned to them in that Act;
(f) words and expressions used herein and not defined either in this Act or in the Banking Regulation Act, 1949 (10 of 1949), but defined in the Companies Act, 1956 (1 of 1956) shall have the meanings respectively assigned to them in the Companies Act, 1956.