The Industrial Reconstruction Bank of India Act, 1984

 
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THE INDUSTRIAL RECONSTRUCTION BANK OF INDIA ACT, 1984 ACT NO. 62 OF 1984

[11th September, 1984.]

An Act to provide for the establishment of the Industrial Reconstrucson Bank of India, and for the transfer to, and vesting in, the tiaid Reconstruction Bank, of the undertaking of the Corporation known as the Industrial Reconstruction Corporation of India Limited, with a view to enabling the said Reconstruction Bank to function as the principal credit and reconstruction agency for industrial revival and to co-ordinate similar work of the other institutions engaged therein and to assist and promote industrial development, and to rehabilitate industrial concerns, and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows:--

CHAP

PRELIMINARY

CHAPTER I

PRELIMINARY

1.

Short title and commencement.

1. Short title and commencement.-(1) This Act may be called the Industrial Reconstruction Bank of India Act, 1984.

(2) It shall come into force on such date1* as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.

2.

Definitions.

2. Definitions.- In this Act, unless the context otherwise requires,--

(a) "appointed day", in relation to any provision of this Act, means the date on which such provision comes into force and any reference to the appointed day in any provision of this Act shall be construed as a reference to the commencement of that provision;

(b) "assistance" means any direct or indirect financial, managerial or technical assistance granted by the Reconstruction Bank in pursuance of any business referred to in section 18;

(c) "assisted industrial concern" means any industrial concern to which any assistance has been given by the Reconstruction Bank;

(d) "Board" means the Board of directors of the Reconstruction Bank;

[See footnote 1 for this section]

(e) "charge" includes a charge referred to in section 37;

(f) "Corporation" means the Industrial Reconstruction Corporation of India Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956), and having its registered office in the State of West Bengal;

(g) "Development Bank" means the Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964);

(h) "dues" means any dues payable by any person to the Reconstruction Bank in relation to any assistance given by, or any bond or debenture issued to, the Reconstruction Bank, and includes interest, rent, costs, charges and commission payable in relation thereto;

(i) "industrial concern"--

(1) means any concern engaged, or to be engaged, in--

(i) the manufacture, preservation or processing of goods;

(ii) shipping;

(iii) mining;

(iv) the hotel industry;

(v) the transport of passengers or goods by road or by water or by air or by ropeway or by lift;

(vi) the generation or distribution of electricity or any other form of power;

(vii) the maintenance, repair, testing or servicing of machinery of any description or vehicles or vessels or motor boats or trailers or tractors;

(viii) assembling, repairing or packing any article with the aid of machinery or power;

(ix) the development of any contiguous area of land as an industrial estate;

(x) fishing or providing shore facilities for fishing or maintenance thereof;

(xi) providing special or technical knowledge or other services for the promotion of industrial growth;

or (xii) the research and development of any process or product in relation to any of the matters aforesaid, (2) and includes--

(i) an undertaking owned, controlled or managed by a company, firm or other body corporate, which is, or is to be, so engaged, (ii) such other concern as the Central Government may, by notification in the Official Gazette, specify in this behalf.

Explanation.--The expression "processing of goods"

includes any art or process for producing, preparing or making an article 553 by subjecting any material to a manual, mechanical, chemical, electrical or any other like operation;

(j) "nationalised bank" means a corresponding new bank as defined in section 2 of the--

(i) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970);

(ii) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);

(k) "prescribed" means prescribed by rules made under this Act;

(l) "public financial institution" means a public financial institution specified in, or under, section 4A of the Companies Act, 1956 (1 of 1956);

(m) "Reconstruction Bank" means the Industrial Reconstruction Bank of India, established under section 3;

(n) "regulation" means a regulation made under this Act;

(o) "Reserve Bank" means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934);

(p) "share" means a share in the capital of the Corporation;

(q) "shareholder" means a person registered by the Corporation as the holder of a share;

(r) "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);

(s) "State Bank" means the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 (23 of 1955);

(t) "State co-operative bank" means the principal co-

operative society in a State, the primary object of which is the financing of other co-operative societies in the State;

(u) "State Financial Corporation" means a financial corporation established under section 3 or section 3A or an institution notified under section 46, of the State Financial Corporations Act, 1951 (43 of 1951);

(v) "State level agency" means such institution or agency, operating in any State or Union territory, as may be specified as its agency by the Reconstruction Bank.

CHAP

ESTABLISHMENT OF THE INDUSTRIAL RECONSTRUCTION BANK OF INDIA

CHAPTER II

ESTABLISHMENT OF THE INDUSTRIAL RECONSTRUCTION BANK OF INDIA

3.

Establishment of the Reconstruction Bank.

3. Establishment of the Reconstruction Bank.-(1) With effect from such date 1* as the Central Government may, by notification in the Official Gazette, appoint, there shall be established, for the purposes of this Act, a corporation, to be known as the Industrial Reconstruction Bank of India.

(2) The Reconstruction 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 and be sued.

[See footnote 2 for this section]

(3) The head office of the Reconstruction Bank shall be at Calcutta, and the Reconstruction Bank may establish offices, branches or agencies at any other place, whether in, or outside, India.

4.

Authorised capital.

4. Authorised capital.- (1) The authorised capital of the Reconstruction Bank shall be rupees two hundred crores.

(2) The initial paid-up capital of the Reconstruction Bank shall be rupees fifty crores which shall be obtained,--

(a) by the appropriation, out of the assets of the Corporation which stand transferred to the Reconstruction Bank by virtue of the provisions of section 5, of a sum of rupees twenty crores, being an amount equal to the amount paid-up on the shares of the Corporation;

(b) by the conversion, to the extent of rupees twenty crores, of the loans granted by the Central Government to the Corporation, into the capital of the Reconstruction Bank; and (c) by the subscription, by the Central Government, to the paid-up capital of the Reconstruction Bank, of a sum of rupees ten crores.

(3) The Reconstruction Bank may increase its paid-up capital by making further issue of shares of such amount as it may think expedient, but in doing so, the Reconstruction Bank shall ensure that its total capital does not, in any case, exceed its authorised capital.

(4) The entire paid-up capital of the Reconstruction Bank shall be wholly subscribed by, and allotted to, the Central Government.

CHAP

ACQUISITION AND TRANSFER OF THE UNDERTAKING OF THE

INDUSTRIALRECONSTRUCTION CORPORATION OF INDIA LIMITED

CHAPTER III

ACQUISITION AND TRANSFER OF THE UNDERTAKING OF THE INDUSTRIAL

RECONSTRUCTION CORPORATION OF INDIA LIMITED

5.

Undertaking of the Corporation to be transferred to the ReconstructionBank.

5. Undertaking of the Corporation to be transferred to the Reconstruction Bank. (1) On such date1* as the Central Government may, by notification in the Official Gazette, appoint, the undertaking of the Corporation shall stand transferred to, and shall vest in, the Reconstruction Bank.

(2) For the transfer to, and vesting in, the Reconstruction Bank of the undertaking of the Corporation, the Corporation shall be given, in cash, by the Central Government an amount equal to the amount of the total paid-up capital of the Corporation.

(3) The undertaking of the Corporation shall be deemed to include all assets, business, rights, powers, authorities and privileges and all property, movable and immovable, cash balances, reserve funds, investments. book-debts and all other rights and interests in or arising out of, such property as were, immediately before the appointed day, in the ownership, possession, power or control of the Corporation whether within or outside India, and all books of account, registers, records, and all other documents of whatever nature relating thereto, and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the Corporation in relation to its undertaking.

[See footnote 3 for this section]

(4) Unless otherwise expressly provided by this Act, all contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature subsisting or having effect immediately before the appointed day and to which the Corporation is a party or which are in favour of the Corporation, shall be of as full force and effect against or in favour of the Reconstruction...

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