The Industrial Reconstruction Bank (Transfer of Undertakings and Repeal) Act, 1997

(1) This Act may be called the Industrial ReconstructionBank (Transfer of Undertakings and Repeal) Act, 1997. (2) It shall be deemed to have come into force on the 24th day of January, 1997.

In this Act, unless the context otherwise requires-- (a) "appointed day" means such date as the Central Government may, by notification in theOfficial Gazette, appoint under section 3; (b) "Company" means the Industrial Investment Bank of India Limited to be formed andregistered under the Companies Act, 1956 (1 of 1956); (c) "Reconstruction Bank" means the Industrial Reconstruction Bank of India established undersub-section (1) of section 3 of the Industrial Reconstruction Bank of India Act, 1984 (62 of 1984).

On such date as the CentralGovernment may, by notification in the Official Gazette, appoint, there shall be transferred to, and vestin, the Company, the undertakings of Reconstruction Bank.

(1) The Central Government, beingthe shareholder of the Reconstruction Bank immediately before the appointed day, shall be deemed tobe registered, on and from the appointed day, as a shareholder of the Company. (2) The undertakings of the Reconstruction Bank which are transferred to, and which vest in, theCompany under section 3 shall be deemed to include all business, assets, rights, powers, authorities andprivileges and all properties, movable and immovable, real and personal, corporeal and incorporeal, inpossession or reservation, present or contingent of whatever nature and wheresoever situate includinglands, buildings, vehicles, cash balances, deposits, foreign currencies, disclosed and undisclosedreserves, reserve fund, special reserve fund, benevolent reserve fund, any other fund, stocks,investments, shares, bonds, debentures, security, management of any industrial concern, loans,advances and guarantees given to industrial concerns, tenancies, leases and book debts and all otherrights and interests arising out of such property as were immediately before the appointed day in theownership, possession or power of the Reconstruction Bank in relation to its undertakings, within orwithout India, all books of account, registers, records and documents relating thereto and shall also bedeemed to include all borrowings, liabilities and obligations of whatever kind within or without Indiathen subsisting of the Reconstruction Bank in relation to its undertakings. (3) All contracts, deeds, bonds, guarantees, powers of attorney, other instruments and workingarrangements subsisting immediately before the appointed day and affecting the Reconstruction Bank shall cease to have effect or to be enforceable against the Reconstruction Bank and shall be of as fullforce and effect against or in favour of the Company in which the undertakings of the ReconstructionBank have vested by virtue of this Act and enforceable as fully and effectually as if instead of theReconstruction Bank, the Company had been named therein or had been a party thereto. (4) Any proceeding or cause of action pending or existing immediately before the appointed day byor against the Reconstruction Bank in relation to its undertakings may, as from the appointed day, becontinued and enforced by or against the Company in which the undertakings of the ReconstructionBank have vested by virtue of this Act as it might have been enforced by or against the ReconstructionBank if this Act had not been enacted and shall cease to be enforceable by or against the ReconstructionBank

(1) Everyofficer or other employee of the Reconstruction Bank (except a Director of the Board or the Chairmanand Managing Director) serving in the employment immediately before the appointed day shall, in sofar as such officer or other employee is employed in connection with the undertakings which havevested in the Company by virtue of this Act, become, as from the appointed day, an officer or, as thecase may be, other employee of the Company and shall hold his office or service therein by the sametenure, at the same remuneration, upon the same terms and conditions, with the same obligations andwith the same rights and privileges as to leave, leave fare concession, welfare scheme, medical benefitscheme, insurance, provident fund, other funds, retirement, voluntary retirement, gratuity and otherbenefits as he would have held under the Reconstruction Bank if its undertakings had not vested in theCompany and shall continue to do so as an officer or, as the case may be, other employee of theCompany or until the expiry of a period of six months from the appointed day if such officer or otheremployee opts not to continue to be the officer or other employee of the Company within such period. (2) Where an officer or other employee of the Reconstruction Bank opts under sub-section (1) notto be in employment or service of the Company, such officer or other employee shall be deemed to haveresigned. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) in anyother law for the lime being in force, the transfer of the services of any officer or other employee of theReconstruction Bank to the Company shall not entitle such officer or other employee to anycompensation under this Act or under any other law for the time being in force and no such claim shallbe entertained by any court, tribunal or other authority. (4) The officers and other employees who have retired before the appointed day from the service ofthe Reconstruction Bank and are entitled to any benefits, rights or privileges shall be entitled to receivethe same benefits, rights or privileges from the Company. (5) The trust of the provident fund or the gratuity fund of the Reconstruction Bank and any otherbodies created for the welfare of officers or employees would continue to discharge their functions inthe Company as was being done hitherto in the Reconstruction Bank and any tax exemption granted tothe provident fund or the gratuity fund would continue to be applied to the Company. (6) Notwithstanding anything contained in this Act or in the Companies Act, 1956 (1 of 1956) orin any other law for the time being in force or in the regulations of the Reconstruction Bank, no Directorof the Board, Chairman and Managing Director or any other person entitled to manage the whole orsubstantial part of the business and affairs of the Reconstruction Bank shall be entitled to anycompensation against the Reconstruction Bank or the Company for the toss of office or for thepremature termination of any contract of management entered into by him with the ReconstructionBank.