Section 21 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
- (1)The Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1970 (Ord. 3 of 1970), is hereby repealed.
- (2)Notwithstanding such repeal and notwithstanding any judgment, decree or order of any court or tribunal,--
- (a)any action taken, or purported to have been taken, or anything done, or purported to have been done, between the 19th day of July, 1969, and the 10th day of February, 1970, by any corresponding new bank purported to have been constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 (8 of 1969), or the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969 (22 of 1969), or by any person purporting to act on behalf of such bank and any right, obligation or liability acquired or incurred, between the said dates, by or on behalf of such corresponding new bank shall be deemed to have been taken, done, acquired or incurred under the provisions of this Act by or on behalf of the corresponding new bank constituted thereunder;
- (b)any action taken, or purported to have been taken, or anything done, or purported to have been done, between the 10th day of February, 1970, and the appointed day, by an existing bank or by any person acting on behalf of such bank, and any right, obligation or liability acquired or incurred, between the said dates, by or on behalf of such existing bank shall be deemed to have been taken, done, acquired or incurred under the provisions of this Act by or on behalf of the corresponding new bank constituted thereunder;
- (c)anything done or any action taken, including any order made, notification issued or directions given under the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1970 (3 of 1970), shall be deemed to have been done, taken, made, issued or given, as the case may be, under the corresponding provisions of this Act.
- (3)Any suit, appeal or other proceeding of whatever nature instituted on or after the 19th day of July, 1969, by or against a corresponding new bank purported to have been constituted by the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 (8 of 1969), or the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969 (22 of 1969), shall not abate, be discontinued, or be, in any way, prejudicially affected by reason of the expiry of the said Ordinance or the invalidation of the said Act, as the case may be, but such suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the corresponding new bank as if such suit, appeal or other proceeding had been instituted by or against the corresponding new bank constituted under this Act.
Summary
- This section repeals the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance of 1970.
- It protects past actions, ensuring that anything done by the temporary banks established under the 1969 Ordinance or 1969 Act between July 19, 1969, and February 10, 1970, is legally valid under this new Act.
- It ensures that any orders, notices, or directions issued under the repealed 1970 Ordinance are treated as if they were made under this Act.
- It guarantees that ongoing lawsuits, appeals, or legal proceedings started since July 19, 1969, by or against the old temporary banks do not stop or fail, and can be continued under the new banks.
Practical examples
FAQ
1. Which specific ordinance does Section 21 repeal?
It repeals the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1970.
2. What happens to contracts or liabilities made under the 1969 Ordinance or Act before they were declared void?
They are deemed to be legally acquired or incurred under this Act, making them fully valid and active.
3. What happens to lawsuits filed against the banks between July 19, 1969, and the passing of this Act?
They do not close or get dismissed. They can be continued and enforced by or against the corresponding new banks.
Test yourself
Q1.Under Section 21 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, which legislative measure is formally repealed?
Q2.Under Section 21 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, actions taken by banks between July 19, 1969, and February 10, 1970, under the voided 1969 Ordinance or Act are preserved. Why is this preservation legally robust?
Q3.Under Section 21 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, what happens to a lawsuit filed by a depositor against an acquired bank on October 1, 1969, after the 1969 Act was declared void?
Q4.Under Section 21 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, what is the legal status of an action taken by an existing bank during the short transition window between February 10, 1970, and the appointed day of February 14, 1970?