ESTABLISHMENT OF THE EXPORT-IMPORT BANK OF INDIA AND INCORPORATION THEREOFCentral

Section 3 of The Export-Import Bank of India Act, 1981

(1)With effect from such date as the Central Government may, by notification, appoint, there shall be established for the purposes of this Act a corporation to be known as the Export-Import Bank of India.
(2)The Exim Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue or be sued.
(3)The head office of the Exim Bank shall be at Bombay or at such other place as the Central Government may, by notification, specify.
(4)The Exim Bank may establish offices, branches or agencies at such places in or outside India as it may consider necessary.

Summary

The Export-Import Bank of India is established as a corporation by the Central Government.
The bank is a body corporate, meaning it is a legal person that can own things and sign deals.
The bank has perpetual succession, so it continues to exist even if its leaders change.
It has a common seal and the power to buy, hold, or sell property and enter into contracts.
The bank can sue others or be sued in court in its own name.
The main office is in Bombay, but the government can change this location.

Practical examples

1The Exim Bank wants to buy a large office building in Mumbai to serve as its headquarters. Because Section 3 gives it the power to acquire and hold property, it can legally sign the deed as the Export-Import Bank of India.

2A company believes the bank failed to honor a contract. Under Section 3, the company can file a lawsuit specifically against the bank, as the bank has the legal capacity to be sued.

FAQ

1. What is a body corporate?

It means the bank is a legal entity that can act like a person, such as by owning property or signing contracts.

2. Where is the bank's head office located?

The head office is at Bombay, unless the Central Government specifies another place.

3. Can the bank open a branch in another country?

Yes, it can establish offices or agencies in or outside India as it sees fit.

4. What happens to the bank if the Chairman retires?

Nothing. The bank has perpetual succession, meaning it continues to exist regardless of changes in leadership.

Test yourself

Q1.Under Section 3 of The Export-Import Bank of India Act, 1981, what legal characteristic ensures the bank continues to exist despite changes in its members?

Q2.Under Section 3 of The Export-Import Bank of India Act, 1981, where is the head office of the Exim Bank required to be?

Q3.According to Section 3 of The Export-Import Bank of India Act, 1981, which of the following is the bank NOT empowered to do?

Q4.Under Section 3 of The Export-Import Bank of India Act, 1981, where is the bank allowed to establish its offices?

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