Updated: Thursday May 12, 2016/AlKhamis
Sha'ban 05, 1437/Bruhaspathivara
Vaisakha 22, 1938, at 04:06:13 AM
The Banks (Transfer of Assets and Liabilities)
Act, 1974
1Act No. XI OF 1974
[1st, 1974]
An Act to provide for the transfer to the
National Bank of
WHEREAS it is expedient to
provide for the transfer to the National Bank of
It is hereby enacted as
follows:---
1. Short title, extent
and commencement.—(1)
This Act may be called the Banks (Transfer of Assets and Liabilities) Act,
1974.
(2) It extends to the whole
of
(3) It shall come into
force at once.
2. Definitions. In this Act, unless there is anything
repugnant in the subject or context,---
(i) ”National Bank of Pakistan” means the Bank established under
section 3 of the National Bank of Pakistan Ordinance, 1949 (XIX of 1949);
(ii) ”specified offices and branches” means the offices and
branches of the Eastern Mercantile Bank Limited and the Eastern Banking
Corporation Limited specified in the Schedule; and
(iii) ”undertaking of a specified office or branch”
includes subject to an order under section 6, 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 commencement of this Act in the
possession, ownership, power or control of the specified office or branch in
relation to the undertaking within Pakistan, or in relation to the business of
such undertaking outside Pakistan, and all books of accounts, registers,
records, and all other documents of whatever nature relating thereto, and also
includes except as hereinafter provided, all borrowings, liabilities and
obligations of whatever kind then subsisting of the specified office or branch
in relation to the undertaking within the Federal Capital and the Provinces of
the Punjab and Sind.
1 For Statement of Objects and
Reasons, see Gaz. of P., 1973, Ext., Pt. III, p. 1887.
3. Act to override other
laws. The Provisions
of this Act and any rule or order made there under shall have effect
notwithstanding anything contained in any other law for the time being in
force, or in any contract, agreement, award, memorandum, article or other
instrument whatsoever.
4. Vesting of specified
offices and branches. On
the commencement of this Act, the undertakings of each of the specified offices
and branches shall stand transferred to, and vest in, the National Bank of
5. Contracts and
proceedings.—(1) 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 commencement of this Act to which any of the specified offices and branches
is a party or which are in favour of any specified office or branch shall be of
as full force and effect against or in favour of the National Bank of Pakistan,
and may be enforced or acted upon as fully and effectually, as if in the place
of the specified office or branch the National Bank of Pakistan had been a
party thereto or as if the same had been in favour of the National Bank of
Pakistan.
(2) If any suit, appeal or
other proceeding of whatever nature in relation to any business of the
undertaking which is transferred by virtue of section 4 is pending by or
against any specified office or branch, the same shall not abate, be
discontinued or be in any way prejudicially affected by reason of the transfer
or of anything contained in this Act, but the suit, appeal or other proceeding
may be continued, prosecuted and enforced by or against the National Bank of
Pakistan.
6. Excepted liabilities. Notwithstanding anything contained in this
Act, the Federal Government may by order direct that any borrowings,
liabilities or obligations specified in such order shall not form part of the
undertaking of a specified office or branch transferred by virtue of section 4.
7. Delivery of
undertaking. Where
any part of the undertaking of a specified office or branch is in the
possession or under the control of any person, such person shall, within seven
days of the commencement of this Act, deliver the same to a representative of
the National Bank of Pakistan duly authorised in that behalf.
8. Police assistance.—(1) A magistrate may, by warrant,
authorise a police officer not below the rank of Inspector to enter upon and
search for any property of the undertaking of a specified office or branch in
any premises where it may reasonably be expected to be found and to seize such
property.
(2) Any property seized
under sub-section (1) shall be delivered to the National Bank of
9. Evaluation.—(1) The National Bank of Pakistan shall
cause the assets and liabilities of the specified offices and branches to be
evaluated and such evaluation to be duly audited by any auditor who is a
chartered accountant within the meaning of the Chartered Accountants Ordinance,
1961 (X of 1961).
(2) The report of an
evaluation under sub-section (1), duly audited as required by that sub-section,
shall disclose the financial status of each of the specified offices and
branches as at the date of transfer under section 4, and shall be submitted to
the Federal Government within three months of such date.
(3) The Federal Government
may, by order, issue directions as to the manner in which any excess of assets
over liabilities or any shortfall therein of the specified offices and branches
as at the date of the transfer by virtue of section 4 is to be disposed of or
recovered, as the case may be.
10. Validity of action
of officers of specified offices and branches. Notwithstanding any cancellation of powers
delegated by the managements of the Eastern Bank Limited and the Eastern
Banking Corporation Limited to the officers of the specified offices and
branches, all actions taken by such officers in good faith between the 16th day
of December, 1971, and the date of transfer of the undertakings of such offices
and branches by virtue of section 4 shall be deemed to have been validly taken
and shall have effect as if there had been no such cancellation of powers.
11. Extension of
limitation. For the
purpose of computing the period of limitation for the recovery of any money due
to or from any of the specified offices and branches the period between the
16th December, 1971, and the date of transfer of the undertakings of the
specified offices and branches by virtue of section 4 shall be excluded.
12. References in other
laws. Any reference
to any of the specified offices and branches in any law, other than this Act,
or in any contract or other instrument shall, in so far as it relates to any of
the undertakings transferred by virtue of section 4 and if not inconsistent
with any provision of this Act, be construed as a reference to the National
Bank of Pakistan.
13. Penalties. Any person who contravenes any of
the provisions of this Act or of any rule or order made thereunder or wilfully
obstructs any person in carrying out the purposes of this Act shall be
punishable with imprisonment for a term which may extend to
three years, or with fine, or with both.
14. Bar of Jurisdiction.—(1) No court shall call in question, or
permit to be called in question, anything done or action taken or purporting to
be done or taken under this Act.
(2) No court shall grant
any injunction or make any order, nor shall any court entertain any proceedings,
in relation to anything done or intended or purporting to be done under this
Act.
15. Indemnity. No suit, prosecution or other legal
proceeding shall lie against the Federal Government or the National Bank of
16. Power to make rules. The Federal Government may, by
notification in the official Gazette, make such rules as appear to it necessary
or expedient for carrying out the purposes of this Act.
17. Removal of
difficulties. If any
difficulty arises in giving effect to any provision of this Act, the Federal
Government may make such order, not inconsistent with the provisions of this
Act, as may appear to it to be necessary or expedient for the purpose of
removing the difficulty.
18. [Repeal.] Omitted by the Federal Laws
(Revision and Declaration) Ordinance, 1981 (XXVII of 1981), s. 3 and Sch., II.
THE SCHEDULE
[See section 2 (ii)]
1. All offices, and branches of the Eastern Mercantile Bank
Limited located at Karachi, Lahore, Gujranwala, Islamabad, Hyderabad, Sialkot
and 1[Faisalabad].
2. All offices and branches of the Eastern Banking Corporation
Limited located at
1 Subs. by the Federal Laws
(Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and Sch. II.
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