 the international monetary fund and bank (amendment) bill, 1959(as dltroduced in ~ sabha on 6th august, 1959)  the international monetary fund and bank (amendment) bill, 1959 (as introduced in lok sabha) a billfurther to amend the international monetary fund and bank ordinance, 1945 be it enacted by parliament in the tenth year of the republic 01 india as follows:-1 this act may be called the international monetary fund and short title bank (amendment) act, 1959 5 2 in the international monetary fund and bank ordinance, 1945 sub stitution (hereinafter referred to as the principal ordinance), for the word ?,~~~ wf~~ "ordinance", wherever it occurs, the word "act" shall be substituted the word "ordi-10 nanoe" 3 for the last paragraph of the p •• odd  " the enacting for- amendment mula, the words "be it enacted _ folidwa:-"ilbail,be-substituted of preamble and eilact;di fonnuia 4 in sub-section (1) of section 2 of the principal ordinance,-a d men ment (i) in the opening paragraph, for the words "revenues of the of iectiod 2 central government", the words "consolidated fund of india" mall be substituted; (ii) in clause (a), for the words, brackets and letter "to the international bank under paragraph (a) ", the words, brackets and letters "to the international bank under paragraphs (a) and (c) if shall be substituted 604 ls-l 5 section 7 of the principal ordinance shall be re-numbered as sub-section (1) thereof, and after sub-section (1) as so re-numbered, the following sub-iection shall be inserted, namely:-"(2) every rule made under this section shall be laid, as soon as may be after it is made, before each house of parliament while 5 it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both houses agree in making any modification in the rule, or both houses agree that the rule 10 should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modlification or annulment shall be without prejudice to the validity of anything previously done under that rule"   '  is  statement· of objects and reasonsthe in~ernational monetary fund and the international bank for r~('onstruction and developmen~ were brought into existence through an international agreement concluded at the un· monetary and financial conference held in december, 1945, and india became one of the original members of these institutions by signing the respective articles of agreements an ordinance called the "international monetary fund and bank ordinance, 1945" was promulgated in december, 1945 to implement the agreements under which these two institutions were established this ordinance is still in force section 2 (1) (a) of the ordinance requires the central govern  ment to payout of central revenues such sums as may from time to time be required for the purpose of paying india's original quota in the international monetary fund and its initial subscription to the capital stock of the international bank the section also requires the central government to make subscription towards an increase in the quota in the international monetary fund the ordinance, however, contains no provision empowering the central government to suqscribe towards additional shares in respect of an increase in the authorised capital stock of the bank the board of governors of' the international bank has recently deo:ided on an increase in the authorised capital stock of the intf:'rnational bank and a general 100% increase in the subscriptions of all member countries since the ordinance does not authorise payment in respect of any increase in our subscription on account of an increase in the authorised capital stock of the bank, it has become necessary to amend the ordinance and provide for such authority clause 4 (ii) of the bill seeks to achieve this purpose opportunity has also been taken to convert the ordinance into an ac~ n!w delhi; morarji r desai the 25th july, 1959 the bill amends the international monetary fund and bank ordinance, 1945, with the chief object of empowering the central government to payout of the consolidated fund of india such sums as may from time to time be necessary for the payment of subscription towards india's additional shares in the increased capital stock of the international bank for reconstruction and development india's·present shares in the bank are equivalent to $400 million and the additional ihares as contemplated at present will also be of the same amount according to the decision of the board of governors of the bank, the entire subscription towards the additional shares will remain unpaid the bank will have the right to call for this 8ubecrlption only when it is required by it for meeting its obllgations and liabilities the purpose of the increase in the authorized capital stock of "the bank, towards which india, together with other member countries, proposes to subscribe additional shares is to enable the bank to borrow larger sums in the world capital markets, on the strength of its increased capital, and thus augment its resources for lending to member countries india's additional subscription of $400 million will thus not be paid immediately, but only when a contingency of this nature arises apart from this contingent payment at a future date, no expenditure is involved  annexure the international monetary fund and bank ordinance, 1945 ordinance no xlvii of 1945 (24th december, 1945) an ordinance to implement the international monetary fund and bank agreementswhereas, at the united nations monetary and financial conference held at bretton woods, new hampshire, in july 1944, articles of the following agreements were drawn up, and set out in the final act of the said conference that is to say:-(a) any agreement (hereinafter referred to as the fund agreement) for the establishment llnd operation of an international body to be called the international monetary fund (hereinafter referred as the international fund), and (b) an agreement (hereinafter referred to as the bank agreement) for the establishment and opemtion of an international body to be called the international bank for reconstruction and development (hereinafter referred to as the international bank): and wherj!!as an emergency has arisen which renders it necessary to make certain provision for the purpose of implementing the aforesaid agreements; now, therefore, in exereise of the powers conferred by section 72 of the government of india act, as set out in the ninth schedule to the government of india act, 1935 (26 geo 5 c 2) the governor general is pleased to make and promulgate the following ordinance:":" 1 (1) ,this ordinance may be called the internoational monetary short title, fund add bank ordinance, 1945 ~~ (2) it extends to the whole of india ment (3) it hall eome into force at once 2 (1) there shall be paid out of the revenues of the central payments lo government all such sums as may from time to time be required for i~temlafun' bona d the purpose of paying-idd bank (a) the subscriptions payable by the central government, to the international fund under parairaph (a) of seetion 3, and peragraph (a) of section 4, of article iii of the fund agreement and to the international bank under paragraph (a) of section 3 of article ii of the bank agreement;  (b) any sums payable by the central government to the international fund under paragraph (b) of section 8 of article iv of the fund agreement, end to· the international bank unde!' section 9 of article ii of the bank agreement; (c) any charges payable by the central government to the international fund under section 8 of article v of the fund agreement; (~) any sums required for implementing the guarantee of the central government referred to in section 3 of article xiii of the fund agreement; (e) any compensation required to be paid by the central government to the international fund or to any member thereof under schedule d or schedule e to the fund agreement (2) the central government may, if it thinks fit so to do, create and issue to the internation'll fund or international bank, in such form as it thinks fit, any such non-interest bearing and non-negotiable notes or other obligations as are provided for by section 5 of article iii of the fund agreement and section 12 of article v of the bank agreement reserve 3 the reserve bank of india (hereinafter referred to as the bank to be depository reserve bank) shall be the depository of the indian currency holdfor intema- ings of the international fund ana internatioool bank tiodal fllnd and bank power to call 4 (1) where under section 5 of article viii of the fund agreef~r informa- ment, the international fund requires the central government to bon furnish it with any information, the central government, or if generally or specially authorised by the central government in this behalf, the reserve bank, may by order in writing require any person to furnish to such officer or other person as may be specified in the order such detailed information as the central government or the reserve bank, as the case may be, may determine to be essential for the purpose of complying with the request of the international fund; 'lnd any person so required shall be bound to furnish such inf8rmation (2) every officer or person to whom any information is required to be furnished under this section shall be deemed to be a public servant within the meaning of section 21 of the indian penal code (xl v of 1860) (3) no information obtained under this section shall be furnished to the international fund in such detail as to disclose the affairs of any person, and the provisions of sub-sections (1), (2) and (3) of section 54 of the indian income-tax act, 1922 (xi of 1922) shall apply in relation to information obtained under this section as they apply to the puticulars referred to in that section (4) a determination of the central government or the reserve bank under sub-section (1) as to the extent of detail in which information is to be furnished shall be final, and in any prosecution under section 176 or section 177 of the indian penal code in respect of any information required to be furnished under this section, it shall not be - 1' defence to assert that the information was required to be furnished in greater detail than was essential for the purpose of complying with the request of the international fund (5) no prosecution for an offence in respect of any information required to be furnished under this section shall be instituted except with the previous sanction of the central government s notwithstanding anything to the contrary contained in uny ~e~tail1 proth 1 h   h f d b a visions of o er aw, t e provisions of t e und an ank greements set out agl'l"ejjlenti in the schedule shall have the force of law in india: to have force of law provided that nothing in section 9 of article ix of the fund agreement or in section 9 of article vii of the bank agreement shall be construed as-(a) entitling the international fund or international bank to import into india goods free of any duty of customs without any restriction on their subsequent sale therein, or ('b) conferring on the international fund or international bank any exemption from duties or taxes which form part of the price of goods sold or which are in i>3ct no more than charges for services rendered 6 repealed by the repealing and amending act, 1952 (xl viii amendment of 1952), s 2 and sch of section 17, act u of 1934· 7 the central government may by notification in the official power to gazette, make rules for giving effect to the provisions set out in the make rulrs schedule, and generally for carrying out the purposes of this ordinance  provisions of agreements which shall ha vb force of la w part i fund agreementparagraph (b) of section 2 of article viii exchange contracts which involve the currency of any member and which are contrary to the exchange control regulations of that member maintained or imposed consistently with this agreement shall be unenforceable in the territories of any member  article ix status, immunities and privileci's section 1 purpose of articleto enable the fund to fulfil the functions with which it is entrusted, the status, immunities and privileges set forth in this article shall be accorded to the fund in the territories of each member  section 2 status of the fundthe fund shall possess full juridical personality, and, in particular; the capacity (i) to contract; (ii) to acquire and dispose of immovable and movable property; (iii) to institute legal proceedings  section 3 immunity from judicial processthe fund, its property and its assets, wherever located and by whomsoever held, shall enjoy immunity from every form of judicial process except to the extent that it expressly waives its immunity for the purpose of any proceedings or by the terms of any contract  section 4 immunity  from other actionproperty and assets of the fund, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action  section 5 immunity of archivesthe archives of the fund shall be inviolable  section 6 freedom of assets from restrictionsto the extent necessary to carry out the operations provided for in this agreement, all property and assets of the fund shall be free from restrictions, regulations, controls and moratoria of any nature  section 7 privilege for communicationsthe official communications of the fund shall be accorded by members the same treatment as the official communications of other members  section 8 immunities and privileges of officers and employeesall governors, executive directors, alternates, officers and employees of the fund (i) shall be immune from legal process with respect to acts performed by them in their official capacity except when the "fund waives this immunity; (ii) not being local nationals, shall be granted the same inununities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials and employees of comparable rank of other members; (iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of comparable rank of other members  section 9 immunities from taxation(a) the fund, its assets, property, income and its operations and transactions authorised by this agreement, shall be immune from all taxation and from all customs duties the fund shall also be immune from liability for the collection or payment of any tax or duty (b) no tax shall be levied on or in respect of salaries and emoluments paid by the fund to executive directors, alternates, officers or employees of the fund who are not local citizens, local subjects, or other local nationals 804 ls(b)-3 (c) no ~1xation of any kind shall be levied on any obligation or security issued by the fund, including any dividend or interest thereon, by whomsoever held (i) which discriminates against such obligation or security solely because of its origin; or (ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the fund  part ii bank agreement article vii status, immunities and privileges section 1 purpose of articzeto enable the bank to fulfil the functions with which it is entrusted, the status, immunities and privileges set forth in this article shall be accorded to the bank in the territories of each member  section 2 status oj the bankthe bank shall possess full juridical personality, and, in particular, the capacity (i) to contract; (ii) to acquire and dispose of immovable and movable property; (iii) to institute legal proceedings  section 3 position of the bank with regard to judidal processactions may be brought against the bank only in a court of competent jurisdiction in the territorles of a member in which the bank has an office, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities no actions shall, however, be brought by members or persons acting for or deriving claims from members the property and assets of the bank shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the bank  section 4 immunity of assets from seizureproperty and assets of the bank, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation expropriation or any other form of seizure by executive or legislative action  section 5 immunity of archivesthe archives of the bank shall be inviolable  section 6 freedom of assets from restrictionsto the extent necessary to carry out the operations provided for in this agreement and subject to the provisions of this agreement, all property and assets of the bank shall be free from any restrictions, regulations, controls and moratoria of any nature  section 7 privileges for communicationsthe official communications of the bank shall be accorded by each member the same treatment that it accords to the official communications of other members  section 8 immunities and privileges of officers and employeesall governors, executive directors, alternates, officers and employees of the bank (i) shall be immune from legal process with respect to acts performed by them in their official capacity except when the bank waives this immunity; (ii) not being local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members; (iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of comparable rank of other members  section 9 immunities from taxation(a) the bank, its assets, property, income and its operations and transactions authorised by this agreement, shall be immune from all taxation and from all customs duties the bank shall also be immune from liability for the collection or payment of any tax or duty (b) no tax shall be levied on or in respect of salaries and emoluments paid by the bank to executive directors, alternates, officials or employees of the bank who are not local citizens, local subjects, or other local nationals (c) no taxation of any kind shell be levied on any obligation or security issued by the bank (including any dividend or interest thereon) by whomsoever held (i) which discriminates against such obligation or security solely because it is issued by the bank; or (ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the bank (d) no taxation of any kind shall be levied on any obligation or security guaranteed by the bank (including any dividend or interest thereon) by whomsoever held (i) which discriminates against such obligation or security solely because it is guaranteed by the bank; or (ii) if the sole jurisdictional basis for such taxation is th~ location of any office or place of business maintained by the bank a bill further to amend the iniernational monetary fund and bank ordinance, 1945 tbe president has, in pursuance of clauses (i) and (3) of article 117 and clause (i) of anicle 274 of the constitution of india, recommended to lok sabha, thee introduction and consideration of the bill m n kaul, secretary (shri morar}i desai, minister of finance) 