 the state-associated banks (m!scellaneou s provisions) bill, 1962(as introduced in lok sabra on 19th november, 15)62)  the state-associated banks (miscellaneous provisions) bill, 1962 (as introduced in lok suiia) a billfurther to amend the state bank of india act, 1955, the state bark of india (subsidiary banks) act, 1959, and the bankers' books  eipide9ace act, 1891, and to prooide fot the winding up of certain minor state-associated banks and for matters connected therewith be it enacted by parliament in the thirteenth year of the republic of india as follows:-1 (1) this act may be called the state-associated banks (mis- shon title cellaneous provisions) act, 1962 ~!:m s (2) section 3, except clauses (ii) , (iv) and (vii) thereof, shall come into force on iulch date as the central government may, by notiftcation in the official gazette, eppoint; and the rest of this act shall come into force at once 2 in the state bank of india act, 1951>-~ ': of ac  ~ cd{; - 10 (i) in sub-section (3) of section 31, the following proviso 19s5  · shall be inserted at the end, namely:-"provided that nothing contained in this sub-sectiod shall apply to such director by reason only of his being-is i of 1956 (i) a shareholder (other than a director) holding not more than two per cent of the paid-up capital in any public company as defined in the companies act, 1956, or any corporation established by or under any law for the time being in force in india or any co-operative society, with whioh or to which the state bank has entered into or made, or proposes to enter into or make a contract loan, arrangement or proposal; or (ii) a director ex ot1icio of the state bank or a director of a subsidiary bank"; (ii) in section 34,-(a) in sub-section (5), after the words "without security", the words "or without security of a description autho-s rised by this act" shall be inserted; (b) in sub-section (6)-(i) for ·the word and figures "section 33", the words "this act" shall be substituted; (ii) the words "interest in" shall be omitted; and 10 (iii) in section 50, in clause (q) of sub-section (2), efter the words "without security" in both the places where they occur, the words "or without security of a description authorised by this act" shall be inserted is 3 in the sta·te bank of india (subsidiary banks) act, 1959-amendment of act 38 of 19s90 sub-clause shall be (i) in section 2, sub-clause (iii) of clause (b), (iii) of clause (c) and sub-clause (iii) of clause (d) omitted; (ii) in cbaptei' ii, for the existing heading, the heading shall be substituted, namely:-following 20  "constitution of new· banks and change op name op any subsmlary bank";(iii) in section 3, clause (c) shall be omitted; (iv) after section 3, the following section shall be inserted, namely:-25 "3a (1) the central government after consulting the state bank and the reserve bank may, by notification in the official gazette, direct tlpltt the name of any subsidiary bank shall, with effect from such date as may be specified in this behalf, be changed to any other name and thereupon 30 any reference to that subsidiary bank in this act or any other law for the time being in force or in any contnlct, instrument or document shall be construed as a reference to that bank by its new name (2) the change in the name of a subsidiary bank under 3s sub-section (1) shall not affect any rights or obligations of that bank or render defective any legal proceedings by or against it, and any legal proceedings which might have been continued or commenced by or against that bank by tt former name may be continued by or against it by its new name"; s (v) in section 12, after sub-section (3), the following section shall be inserted, mmely:-- (4) for the purposes of this section,-10 (4) "corresponding new bank" means in relation to the bank of jaipur limited, the institution eonstftuted under section 3 as the state bank of bikaner; (b) "existing bank" includes the bank of jaipur limited'; (vi) in section 13 for sub-section (13), the following subsection shall be substituted, namely:-- (13) for the purposes of this section,-(4) "corresoonding new bank" does not include the smte bank of patlala and means in relation to the baak of jaipur limited the institution constituted under section 3 as the state bank of bikaner; 20 (b) "existing bank" ineludes the bank of jafpur limited but does not include the bank of patfala'; (vu) in section 34 for the orovfso to sub-section (5), the following proviso shall be substituted, namely:-"provided that nothinj( contained in this sub-seetlon 2s shall apply to such director by reason only of his being-(i) a shareholder (other than a director) holding not more than two per cent of the paid-up capital in any pubilc company as defined in the companies act, 1956, or anv corooration established bv or under any law for the time befn~ in force in india or any co-operative society with which or to which the subsidiary bank has entered into or made, or proj)oses to enter into or make, a contract, loan, arrangement or proposal; or 35 (u) a director of the state bank or of any other subsidiary ba·nk beinl! a director under clause (0) or clause (e) of sub-section (1) of section 25 or befng an officer of the reserve bank or the state bank nominated under clause (b)· or clause (c) of that sub-section"; (viii) in section 36, sub-sections (3) and (4) shall'be omitted; and (iz) for section 59, the following section shall be'substitut- 5 ed, namely:-eonatruction of referencd· - to cxiatina banb u59 (1) for the purposes of sections 45, 49, 55, 58 and ,the first schedule, the expression 'existing bank' shall include the bank of jaipurlimited;  (2) except as otherwise provided in any general or 10 special order made ,by the central government, any reference in any law, other than this act, or in any contract or other instrument-(a) to an existing bank, shall be construed as a reference to the eorresponding new bank; 15 (b) , to the 'bank of j aipur· limited" shall be construed as a reference to the state bank of bikaner" -,  , -in the bankers' books evidence act, 1891, in section 2-amendment, of act 18 of 1891,  "(i) for" clause (1), the following clauses shall be substituted, namely:-20 , (1) "company~' means any company as defined in section ,3 9f the companies act, 1956, and ir)cludes a foreign company within the meaning of section 591 of that act; i of 1956 '(ja) '-~colporatign" means any body corporate established by any law for the time being in 'force in ,lndia and 25 includes the reserve bank of india, the state bank of india "ndllny subsidiary bank 'as defined in'the state bank of -india (subsidiary banks) act; 1959;'; ,  (ii) for sub-clause (cz) of dause (2) the following clause 38 of 1959· shall·be substituted, namely:-"'(4) any c!ompany 'or' corporation earrying on the busi- 30  'ness'of 'banking," ' proviion  's: -(1) notwithstanding anything to theconttary oontained in thin res~s ct of'any"ot1ier low or in any orderor other instruinen~ e tate", , bank, (a) the central government may, by order appoint one or 35 dholpur more officers to take over the management of the dholpur bank or to wind up its affairs -ahd distribute its 'assets and any ex-" peaditure incurred in connl!ction with 'liuch appointment, - 'mari'agejl\~t w,inding up or distribution shall be ,payable by that bank: , 40 s 10 20 (b) the principal civil court of original jurisdiction in the district in which the dholpur bank's head office is situated shall have exc'usive jurisdiction to entertain and decide any claim made by or against the dholpur bank or any question whatever, whether of law or of fact, which may relate to or arise in the course of the windi,ng up of that bank, whether such claim br question has accrued or arisen before or accrues or arises after the date of the winding up order, and any suit or other legal proceeding, whether of a civil or criminal nature, relating to any such claim or question and pending in any other court at the commencement of this act shall not be proceeded with except in accordance with this section; (c) in regard to the admissibility of the entries in the books of account as evide~ce in the course of the proceedings for the winding up of the bank, the settlement of the list of debtors of the bank, the passing of orders for the payment of the amounts due by the said debtors, the execution of the said orders or any other orders or decrees -of the court, the priority of the claims on the bank, the making of preferential payments and the discharge of the other liabilities of the bank and any other incidental or connected matters, the law relating to the winding up of banking companies, as in force for the :time being, shall apply as if the dholpur bank were a banking company; (d) the period of limitation for any suit or app'ication relating to' any payment due to the dholpur bank which has accrued before or ~ay accrue on- or after the date of the first appointment of the officer in charge of winding up of the bank shall be twelve years from the date of the accrual of the claim or five years from the date of such first appointment of the officer aforesaid, whichever may end later; and 30 3s (e) after the repayment of all the deposit liabilities and any other amounts due to be paid by the bank including the amounts due to the government of rajasthan, the remaining assets, ifany, of the bank shall be utilised, as far as may be, for the purposes and objects specified in the state bank, dholpur act, 1915, and other relevant documents (2) in this section, "dholpur bank" mea·ns the bank known as the dholpur state bank and governed at the commencement of this section by the state bank, dholpur act, 1915 6 in the state bank of kurundwad (junior) act, 1933,-amendment of the state bank of (4) in section 22, for the words "the indian companies act ku~ndwad as applied to the state," the words and figures "the companies ~~t~l~i33 act, 1956" shall be sub~tltuted; and (b) after section 22, the followi·ng section shall be inserted, namely:-"22a no provision of law relating to the ~nding up of companies or corporations shall apply to the bank and-(i) the provisions of section 5 of the state-associated banks (miscellaneous provisions) act, 1962, except the previsions of clauses (d) and (e) of sub-section (1) thereof, and " (ii) the provisions of section 45-0 of the banking companies act, 1949, shall apply to or in relation to the bank as if references to the court were references to the principal civil court of original jurisdiction in the district in which the bank's head office is situated and references to the dholpur bank were references to the state bank of kurundwad (junior) ltd"  statement of objects and reasonsit has been decided, in consultation with the state bank of india and the reserve bank that the state bank of bikaner, which has been constituted as a subsidiary of the state bank of india under section 3 of the state bank of india (subsidiary banks) act, 1959, should take over the undertaking, assets and liabilities of the state bank of jaipur, another subsidiary of the state bank of india, in accordance with the provisions of section 38 of the act the state bank of india and the banks concerned have indicated that they would like the name of the transferee institution, after the amalgamation, to be changed so as to include a reference therein to both bikaner and jaipur as the existing provisions of the law do not provide for a change in the name of any of the statutory subsidiaries of the state bank of india, it is proposed to amend the state bank of india (subsidiary banks) act, 1959 suitably, so as to provide for any such change in the name 2 the opportunity provided by this amendment is also being utilised to clarify the provisions of the state bank of india act, 1955, relating to voting by the directors of the state bank, to modify the provisions of the bankers' books evidence act, 1891 so as to make it applicable to the reserve bank of india, the state bank of india and other statutory banking corporations, and to provide for the orderly winding up of two minor state-associated banks, namely, the state bank of dholpur and the state bank of kurundwad (junior), which were established under statutes enacted by the former indian rulers but have not been functioning normally for some time new delhi; morarji desai the 12th nowember, 1962 mcctin,s of the central board :u (l) the central board shall meet at such time and place and shall observe such rules of procedure in regard to the transaction o~ b\lsiness at its meetings as may be prescribed  (3) a dire(!tor who is directly or indirectly concerned or in rere:;ted in any contract, loan, arrangement or proposal entered into or pl·oposed to be entered into by or on behalf of the state bank shall at the earliest possible opportunity disclose the nature of his interet to the central board and shall dot be present at any meeting of the central board when any such contract, loan, arrangement or proposal is discussed unless his presence is required by the other directori for the purpose of eliciting informatiod, and no director· so required to be present shall vote on any such contract, loan, arranpment or p~oposal business which the state bark may not transact power of centtal boan to make reaulationa :m - - - - - (5) nothing contained in this section shall prevent the state bank from allowing any person who keeps an account with the state bank to overdraw such account without security to such extent as mjy be pr~scribed (6) sl\ve as otherwise provided in section 33, the state bank shall not own or acquire any interest in in:unovable property except for the purpose of providing buildings or other accommodation in which to carry on the business of the state bank or for providing residences for its officers and other employees: provided that if any such building or other accommodation is not immediately required -for any of the purposes of the st~te bank, the state bank may utilize it to the best advant~e by lett1,ng it out· ~ in any other manner - - - - - 50 (1) - -   - (2) in particular, and without prejudice to the generality of the foregoing power, such regulations may provide for-- -   - (q) the maximum amounts which may be advanced or lent to, or for which bills may be discounted for, any individual or partnership without security, the conditions under which advances may be made on security and the extent to which accounts may be overdrawn without security; - - - - -  thi: state bank of india (subsmiary banks) ai:r, 1959 (no 38 of 1959)z in this act, unless the context otherwise requires,-- - - - - (b) "corresponding bank" means,-- - - - - (iii) in relation to the state bank of jaipur, the bank of jaipur, limited; - - - - - (c) "corresponding new bank" meana,-- - - - - (iii) in relation to the bank of jaipur, limited, the state bank of jaipur; - - - - - (d) "existing bank" means any of the  following banks, namely:-- - - , - (iii) bank of jaipur, limited; - - - - -  chapter ii constitution of new banlcsbatabliah-3 with eftect from such date as the central government may, by :of new notification in the official gazette, specify in this behalf, there shall be constituted the following new banks, namely:- -  - - - - - (c) the state bank of jaipur; - - - - - and different dates may be specified for diffenmt new banks <:ampensa-13 (1) every person who and any state government which t~~ i:e- immediately before the appointed day is registered as a holder of existing shares in the books of an existing bank shall be given by the state ~=·tb!her bank such compensation in respect of the transfer to the state bank ba~k of of the shares in the capital of that bank as is determined in accor-patlala dance with the principles contained in the first schedule - - - - - (13) in this section, the expression "existing bank" does not include the bank of patiala, and the expression "corresponding new bank" does not include the state bank of patiala - - - - meetinp of 34 (1) the board of directors of a subsidiary bank shall meet at th~ board of such time and place and shall observe such rules of procedure in dll'cctors regard to the transaction of business at its meetings as may be prescribed - - - - (5) a director of a subsidiary bank who is directly or indirectly concerned or interested in any contract, loan, arrangement or proposal, entered into or proposed to be entered into or made by or on behalf of the subsidiary bank shall, ,at the earliest possible opportunity, disclose the nature of his interest to the board of directors of that bank; and any such director shall not be present at any meeting of the board of directors when any such contract, loan, arrangement or proposal is discussed, unless his presence is required by the other directors for the purpose of eliciting information and where any director is so required to be present, he shall not vote on any such contract, loan, arrangement or proposal: provided that nothing contained in this sub-section shall apply to such director by il'eason only of his being a shareholder (other than a director) holding not more than two per cent of the paid-up capital [ of 1956 in any public company as defined in the companies act, 1956, with which the subsidiary bank has entered into or proposes to enter into a contract or other arrangement - - - - - 36 (1) a subsidiary bank shall, if so required by the state bank, subsidiary act as agent of the state bank at any place in india forabank to ct as agent (a) paying, receiving, collecting and remitting money, bul- ~~:l~ state lion and securities on behalf of any government in india; and (b) undertaking and transacting any other business which the reserve bank may, from time to time, entrust to the state bank '      (3) until an arrangement is made by the state bank with the hyderabad bank or the state bank of mysore, as the case may be, under this section, or until the expiry of a period of six months from the appointed day (which period may from time to time be extended by the reserve bank) whichever is earlier, the hyderabad bank and the state bank of mysore may respectively act as agent of the reserve bank, at the same places where and for the same purposes for which, and on the same terms and conditions on which, the hyderabad bank or the bank of mysore limited, as the case may pe,' was acting as agent of the reserve bank immediately before the appointed day or with the previous approval of the central government at any other place or for any purpose (4) until an arrangement is made by the state bank with the state bank of bikaner, the state bank of jaipur, the saurashtra bank or the state bank of travancore, as the case may be, under this section or until the expiry of a period of six months from the appointed day (which period may from time to time be extended by the reserve bank) whichever is earlier, the state bank of bikaner, the state bank ,of jaipur, the saurashtra· bank or the state bank of travancore may act as agent of the state government of rajasthan or the state govemment1of gujarat or the state government of keraia, as the case may be, at the same places where and for the same purposes for which, and on the same terms and conditions on which, the bank of bikaner, limited, or the bank of jaipur, limited, or the saurashtra bank, or the travancore bank, limited, as the case may be, was acting as agent for the state government immediately before the appointed day or with the previous approval of the central government at any other place or for any purpose  - - - - - reference in 59 on and from the appointed day, any reference to an existing :t::i:;s to bank in any law, other than this act, or in any contract or other banks inst!'ulllent, shall, except as otherwise provided in any general or definition •• special order made by the central government, be construed as a reference to the corresponding new bank - - - - - extract from the bankers' books evidence act, 1891 (no 18 of 1891) - - - - - 2 in this act, unless there is something repugnant in the subject or context,-(1) "company" means a company registered under any of the enactments relating to companies for the time being in force in any part of his majesty's dominions or incorporated by an act of parliament (of the united kingdom) or by an indian law or by royal charter or by letters patent:) (2) "bank" and "banker" mean-(a) any company carrying on the business of bankers, - - - - -  translationthe copy of the st4te bank, dholpur act (palled btl shri huzut on 25th june, 1915)  preliminarythe bank has been established in dholpur state in 1894 out of the funds allotted by the late shri badi maharani sahiba as the late maharaj rana nihalsinh saheb bahadur desired that the amount of the allotment (vaqf) be invested so as to earn interest until such time that sufficient amount could be had to raise a magniftcent and lasting memorial to the late maharani sahiba as the bank is cod-nected with the state, it is ~amed as state bank as it was also one of the aims of the bank to help the deserving employees, agriculturists and the people of the state, the high offtclals of the finance department, military and judicial departments have been appointed as the members of the bank, i so that the recoveries of the bank may not be at the mercy of the· court procedures and the people can avail of the help of the bank very easily it was also felt necessary that all the rules and orders issued by the bank from time to time may be reconsidered and put together so that the people may get acquainted therewith and can avail of the help of the bank as and when needed this act of the state bank, having been passed by shri huzur, has been issued in 1915 kameshwar nath batal, secretary, state bank, dholpur  extract from general rulesr 1 the amount allotted (vaqf) by the late shri badi maharani sahiba shall be invested so as to earn the interest thereon as d~ired by the late maharaj rana nihalsinh, saheb bahadur and the interest so earned shall be adejed to the principal amount until such time that sufficient amount can be had to raise a magnificent and last memorial to the late badi maharani sahiba in this connection, all such sums that are allotted (vaqf) or donated for any particular purpose by other people shall also be invested so as to earn interest - - - - - r 3 the management of the bank shall vest with a committee of seven members t'vil fel' 8 members - - - - - r 53 the members of the committee shan be free to recover the 108d8 of the badk through the orders of the state in the same way as the dues of the state are recovered - - - - - - - - - - 22 the indian companies act, as applied to the state, shall not apply to this bank which shall be governed by this act:  - - - - - a blll further to amend the state bank of india act, 1955, the state bank of india (subsidiary banks) act, 1959, and the bankers' books evidence act, 1891, and to provide for the winding up of certain minor state-associated banks and for matters connected therewith (shri morarji desai, minister of firumce) 