Title : THE INDUSTRIAL RECONSTRUCTION BANK (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT, 1997 Year : 1997
TRANSFER AND VESTING OF THE UNDERTAKINGS OF RECONSTRUCTION BANK IN COMPANY
3.Undertakings of the Reconstruction Bank to vest in Company.
3. Undertakings of the Reconstruction Bank to vest in Company.
On such date as the Central Government may, by notification in the
Official Gazette, appoint, there shall be transferred to, and vest in, the Company, the undertakings of Reconstruction Bank.
4.General effect of vesting of undertakin gs in Company.
4. General effect of vesting of undertakings in Company.
(1) The Central Government, being the shareholder of the
Reconstruction Bank immediately before the appointed day, shall be deemed to be registered, on and from the appointed day, as a shareholder of the company.
(2) The undertakings of the Reconstruction Bank which are transferred to, and which vest in, the Company under section 3 shall be deemed to include all business, assets, rights, powers, authorities and privileges and all properties, movable and immovable, real and personal, corporeal and incorporeal, in possession or reservation, present or contingent of whatever nature and wheresoever situate including lands, building, vehicles, cash balances, deposits, foreign currencies, disclosed and undisclosed reserves, reserve fund, special reserve fund, benevolent reserve fund, any other fund, stocks, investments, shares, bonds, debentures, security, management of any industrial concern, loans, advances and guarantees given to industrial concerns, tenancies, leases and book debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership, possession or power of the
Reconstruction Bank in relation to its undertakings, within or without
India, all books of account, registers, records and documents relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind within or without India then subsisting of the Reconstruction Bank in relation to its undertakings.
(3) All contract s, deeds, bonds, guarantees, powers of attorney, other instruments and working arrangements subsisting immediately
before the ap pointed day and affecting the Recons truction Bank shall cease to have effect or to beenforceable against the Reconstruction
Bank and shall be of as full force andeffect against or in favour the
Company in which the undertakings of t he Reconstruction Bank have vested by virtue of this Act and enforceable as fully and effectually as if instead of the Reconstruction Bank, the Company had been named therein or had been a party thereto.
(4) Any proceeding or cause of action pending or existing immediately before the appointed day by or against the Reconstruction Bank in relation toits undertakings may, as from the appointed day, be continued and enforced by or against the Company in which the undertakings of the Reconstruction Bank have vested by virtue of this
Act as it might have been enforced by or against the Reconstruction
Bank ifthis Act had not been enacted and shall cease to be enforceable by or against the Reconstruction Bank.
5. Provisions in respect of officers and other employees of
(1) Every officer or other employee of the Reconstruction Bank (except a Director of the Board or the Chairman and Managing Director) serving in the employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connect ion with the undertakings which have vested in the Company by virtue of this
Act, become, as from the appointed day, an officer or, as the case may be, other employee of the Company and shall hold his office or service therein by the same obligations and with the samerights and privileges as to leave, leave fare concession, welfare scheme, medical benefit scheme, insurance, provident fund, other funds, retirement, voluntary retirement, gratuity and other benefits as he would have held under the Reconstruction Bank if its undertakings had not vested in the
Company and shall continue to do so as an officer or, as the case may be, other employee of the Company or until the expiry of a period of six months from the appointed day if such officer or other employee opts not to continue to be the officer or other employee of the
Company within such period.
(2) Where an officer or other employee of the Reconstruction Bank opts under subsection (1) not be in employment or service of the Company, such officer or other employee shall be deemed to have resigned.
(3) Notwithstanding anything contained in the Industrial Disputes Act,
1947 (14 of 1947) or in any other law for the time being in force, the transfer of the services of any officer or other employee of the
Reconstruction Bank to the Company shall not entitled such officer or other employee to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.
(4) The officers and other employees who have retired before the appointed day from the service of the Reconstruction Bank and are entitled to any benefits, rights or privileges shall be entitled to receive the same benefits, rights or privileges from the Company.
(5) The trust of the provident fund or the gra tuity fun d of the of
Reconstruction Bank and any other bodies created for the welfare in officers or employees would continue to discharge their functions the
Company as was being done hitherto in the Reconstruction Bank and any tax exemption granted to the provident fund or the gratuity fund would continue to be applied to the Com pany.
(6) Notwithstanding anything contained in this Act or in the Companies
Act, 1956 (1 of 1956) or in any other law for the time being in force or in the regulations of the Reconstruction Bank, no Director of the to Board, Chairman and Managing Director or any other person ent itled manage the whole or substantial part of the business and affairs of the Reconstruction Bank shall be entitled to any compensation against the Reconstruct ion Bank or the Company for the loss of officeor for the premature termination of any contract of management entered into by him with the Reconstruction Bank.
Last updated on March, 2016