4. Vesting of undertaking of Sikkim Bank.—On the appointed day, the undertakings of the Sikkim
Bank shall, by virtue of this Act, stand transferred to, and shall vest in, the Central Government.
5. General effect of vesting.—(1) The undertakings of the Sikkim Bank shall be deemed to include
all assets, rights, powers, authorities and privileges, and all property, movable and immovable, cash
balances, reserve funds, investments 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
Sikkim Bank in relation to its undertakings, 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 Sikkim Bank in relation to its
undertakings.
(2) Unless otherwise expressly provided in 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 Sikkim Bank is a party or which are in
favour of the said Bank shall be of as full force and effect against or in favour of the Central Government.
(3) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any
business of the undertakings which have been transferred under section 4 is pending by or against the
Sikkim Bank, the same shall not abate, be discontinued, or be in any way prejudicially affected by reason
of the transfer of the undertakings of the Sikkim Bank or of anything contained in this Act, but the suit,
appeal or other proceeding may be continued, prosecuted or enforced by or against the Central
Government.
6. Vesting of the shares and undertakings of Sikkim Bank in the State Government.—(1)
Notwithstanding anything contained in sections 3, 4 and 5, the Central Government shall, as soon as may
be, after the commencement of this Act, direct, by notification, that the shares of the Sikkim Bank which
have vested in the Central Government under section 3 and the undertakings of the Sikkim Bank which
have vested in the Central Government under section 4 shall, instead of continuing to vest in the Central
Government, vest in the State Government of Sikkim, on the date of the notification.
(2) Where the shares and the undertakings of the Sikkim Bank vest In the State Government under
sub-section (1), the State Government shall, on and from the date of such vesting, be deemed to have
become the owner in relation to such shares and undertakings and all the rights and liabilities of the
Central Government in relation to such shares and undertakings shall, on and from the date of such
vesting, be deemed to have become the rights and liabilities, respectively, of the State Government.
7. Power of State Government to direct vesting of the undertakings of Sikkim Bank the Sikkim
Co-operative bank.—(1) Notwithstanding anything contained in sections 4, 5 and 6, the State
Government may, if it is satisfied that the co-operative bank is willing to comply, or has complied, with
such terms and conditions as that Government may think fit to impose, including the terms and conditions
regarding allotment of its shares, direct, by notification, that the undertakings of the Sikkim Bank which
have vested in the Central Government under section 4 and thereafter in the State Government under
section 6, shall, instead of continuing to vest in the State Government, vest in the co-operative bank either
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on the date of the notification or on such earlier or later date (not being a date earlier than the appointed
day) as maybe specified in the notification.
(2) Where the undertakings of the Sikkim Bank vest in the co-operative bank under sub-section (1),
that bank shall, on and from the date of such vesting, be deemed to have become the owner in relation to
such undertakings, and all the rights and liabilities of the Central Government or the State Government in
relation to such undertakings shall, on and from the date of such vesting, be deemed to have become the
rights and liabilities, respectively, of the co-operative bank.