6. Transfer of assets and liabilities of the Imperial Bank to the State Bank.—(1) Subject to the
other provisions contained in this Act, on the appointed day,
(a) all shares in the capital of the Imperial Bank shall be transferred to, and shall vest in, the
Reserve Bank, free of all trusts, liabilities and encumbrances, and
(b) the undertaking of the Imperial Bank shall be transferred to, and shall vest in, the StateBank.
(2) The undertaking of the Imperial Bank shall be deemed to include all rights, powers, authorities
and privileges, and all property, movable and immovable, including cash balances, reserve funds,
investments and all other interests and rights in, or arising out of, such property as may be in the
possession of that bank immediately before the appointed day, and all books, accounts, and documents
relating thereto, and shall also be deemed to include all debts, liabilities and obligations of whatever kind
then existing of that bank.
1 [(3) Unless otherwise expressly provided by or under 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 Imperial Bank is a
party or which are in favour of the Imperial Bank shall be of as full force and effect against or in favour of
the State Bank, as the case may be, and may be enforced or acted upon as fully and effectually as if
instead of the Imperial Bank the State Bank had been a party thereto or as if they had been issued in
favour of the State Bank].
(4) If on the appointed day any suit, appeal or other legal proceeding of whatever nature, is pending
by or against the Imperial Bank, the same shall not abate, be discontinued or be in any way prejudicially
affected by reason of the transfer to the State Bank of the undertaking of the Imperial Bank or of anything
contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted and enforced
by or against the State Bank.
7. Transfer of service of existing officers and employees of the Imperial Bank to the State
Bank.—(1) Every officer or other employee of the Imperial Bank (excepting the managing director, the
deputy managing director and other directors) in the employment of the Imperial Bank immediately
before the appointed day shall, on and from the appointed day, become an officer or other employee, as
the case may be, of the State Bank, and shall hold his office or service therein by the same tenure, at the
same remuneration and upon the same terms and conditions and with the same rights and privileges as to
pension, gratuity and other matters as he would have held the same on the appointed day if the
undertaking of the Imperial Bank had not vested in the State Bank, and shall continue to do so unless and
until his employment in the State Bank is terminated or until his remuneration, terms or conditions are
duly altered by the State Bank.
(2) Any person who, on the appointed day, is entitled to or is in receipt of, a pension or other
superannuation or compassionate allowance or benefit from the Imperial Bank or any provident, pension
or other fund or any authority administering such fund shall be entitled to be paid by, and to receive from,
the State Bank or any provident, pension or other fund or any authority administering such fund the same
pension, allowance or benefit so long as he observes the conditions on which the pension, allowance or
benefit was granted, and if any question arises whether he has so observed such conditions, the question
shall be determined by the Central Government and the decision of the Central Government thereon shall
be final.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), no appointment made or
promotion, increment in salary, pension, allowance or any other benefit granted to any person after the
19th day of December, 1954, and before the appointed day which would not ordinarily have been made or
granted or which would not ordinarily have been admissible under the rules or authorisations of the
Imperial Bank or of any provident, pension or other fund in force prior to the 19th day of December,
1. Subs. by Act 33 of 1955, s. 3, for sub-section (3) (w.e.f. 21-9-1955).
7
1954, shall have effect or be payable or claimable from the State Bank or from any provident, pension or
other fund or from any authority administering the fund, unless the Central Government has, by general or
special order, confirmed the appointment, promotion or increment or has directed the continued grant of
the pension allowance or other benefit as the case may be.
(4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any
other law for the time being in force, the transfer of the services of any officer or other employes of the
Imperial Bank from that Bank to the State Bank shall not entitle such officer or other employees to any
compensation under that Act or other law, and no such claim shall be entertained by any Court, Tribunal
or other authority.
(5) Any person holding office as managing director, deputy managing director, director or member of
any Local Board of the Imperial Bank immediately before the appointed day shall be deemed to have
vacated his office as such on the appointed day, and notwithstanding anything contained in this Act or in
any other law for the time being in force or in any agreement or contract, he shall not be entitled to any
compensation from the Imperial Bank or the State Bank for the loss of office or for the premature
termination of any agreement or contract relating to his employment, except such pension, compensation
or other benefit which the State Bank may grant to him, having regard to what that person would have
received as an officer of the Imperial Bank if this Act had not been passed and if he had retired from his
employment in the ordinary course.
(6) Where any managing director, deputy managing director, director, officer or other employee of
the Imperial Bank has, after the 19th day of December, 1954, and before the appointed day, been paid any
sum by way of compensation or gratuity, the State Bank shall be entitled to claim refund of any sum so
paid if the payment is not confirmed by the Central Government by general or special order.
8. Existing provident and other funds of the Imperial Bank.—For the persons who immediately
before the appointed day are the trustees of the following funds, that is to say,—
(a) the Imperial Bank of India Employees Provident Fund;
(b) the Imperial Bank of India Employees Pension and Guarantee Fund;
(c) the Bank of Bombay Officers Pension and Guarantee Fund;
(d) the Bank of Madras Pension and Gratuity Fund; and
(e) the Bank of Madras Officers Provident and Mutual Guarantee Fund;
there shall be substituted as trustees such persons as the Central Government may, by general or special
order, specify.
9. Compensation to be given to shareholders of Imperial Bank.—(1) Every person who
immediately before the appointed day is registered as a holder of shares in the Imperial Bank shall be
entitled to compensation in accordance with the provisions contained in the First Schedule.
(2) Nothing contained in sub-section (1) shall affect the rights inter se between the holder of any
share in the Imperial Bank and any other person who may have an interest in such share, and such other
person shall be entitled to enforce his interest against the compensation awarded to the holder of such
share, but not against the Reserve Bank.