Updated: Tuesday October 11, 2016/AthThulatha
Muharram 10, 1438/Mangalavara
Asvina 19, 1938, at 11:57:31 AM
The Industrial Development Bank of
ACT No. XII of 2011
An Act to provide for the
reorganization and conversion of the industrial Development Bank of
It is hereby enacted as follows:---
1. Short title, extent and
commencement.-(1) This Act may be
called the Industrial Development Bank of
(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,---
(a) “assets”
means rights and powers of every description and includes all properties
movable or immovable tangible or intangible mortgages, charges and claims in
the name or the IDBP as the case may be;
(b) “Company”
means the Industrial Development Bank Limited to be established and incorporated
in accordance with section 3;
(c) “contracts”
means all contracts, agreements, bonds guarantees. indemnities representations,
obligations undertakings and other legal documents and instruments of every
description executed by or on behalf of IDBP, as the case may be including
employment, investment sales and financial contracts with whomsoever;
(d) “effective
dare means the date specified in the order issued under section 5;
(e) “IDBP”
means the Industrial Development Bank of
(f) “liabilities”
means all liabilities lawfully incurred by IDBP, as the case may be and
includes duties and obligations of every kind imposed thereon;
(g) “order”
means an order made by the Federal Government under subsection (1) of section
5;
(h) “proceedings”
includes any suit arbitration or other legal or administrative proceedings,
applications appeals awards reviews or revisions filed or pending;
(i) “rules”
means the rules made under this Act;
(J) “transfer” means the transfer of assets, contracts
liabilities, proceedings and undertakings of IDBP, as the case may be, to the
Company; and
(k) ”undertakings” includes
all projects ventures and any other operations undertaken by IDBP as the case
may be, individually or collectively in collaboration with some other person.
3. Establishment
of the Company, etc.-(1) As soon as may be after the commencement of this Act
the Federal Government shall establish a Company to be known as the Industrial
Development Bank Limited by shares and cause it to be incorporated under the
Companies Ordinance, 1984 (XLVII of I984), with the principal object of taking
over the business, functions, contracts proceedings, undertakings, assets and
liabilities of IDBP,
(2) No
stamp duty or any other charges shall be payable by the Company under any law
for the time being in force for the transfer and vesting of the assets
contracts, liabilities proceedings or undertakings of IDBP to the Company or
any shares or securities issued in favour of the shareholders or financiers or
IDBP by the Company.
4.
Company to be deemed a banking company.-(1) The Company shall
be deemed to be a banking company for the purposes of the State Bank of
Pakistan Act, 1956 (XXXIII of 1956) Banking Companies Ordinance. 1962 (LVII of
1962) and any other law for the time being in force relating to banking
companies until such time that the license is granted to the Company under
sub-section (2).
(2
Without prejudice to the provisions of sub-section (1), the Company shall apply
to the State Bank of Pakistan for a license for permitting to curry on the
business of banking in Pakistan in accordance with the provisions of section 27
at the Banking Companies Ordinance, 1962 (LVll of 1962), through the existing
branches of IDBP.
5.
Transfer and vesting of assets, contracts, liabilities; proceedings and
undertakings.____(1) After the registration of the Company the Federal
Government shall by an order published in the official Gazette direct that all
the assets, contracts liabilities proceedings and undertakings of IDBP stand
transferred to and vest in the Company on the date specified therein, on such
terms and conditions as may be determined by the Federal Government in this
behalf.
(2) The
order issued under sub-section (1) shall, inter-alia, provide for,---
(a) the transfer of
all the assets, contracts, liabilities proceedings and undertakings of IDBP to
the Company:
(b) the allotment of
shares or debentures of the Company to the Shareholders. debenture-holders or
bond-holders of lDBP in proportion to their shares, debentures, bonds or other
securities in IDBP, as the case may be, after determining the net asset value
of lDBP on the effective date;
(c) the dissolution of
IDBP from the effective date;
(d) the transfer of
guarantees issued in favour of the Company by the Government of Pakistan a
Provincial Government and other government agencies such as Sarhad Development
Board and Punjab Small Industries Corporation for repayment of loans from
borrowers; and
(e) such incidental,
consequential and supplemental matters as are necessary to secure the transfer
of assets contracts liabilities, proceedings and undertakings under this Act;
(3) The
value ascribed to the assets and liabilities transferred to and vested in. the
Company by the Federal Government under the order shall represent the fair net
value (of the assets for taxation. depreciation or any other purposes.
(4)
Notwithstanding the provisions of section 146 of the Companies Ordinance, 1984
(XLVII of 1984) the Company shall upon transfer, continue all business and
undertakings of IDBP as were being carried on immediately prior to the
effective date.
6.
Continuation of service in the Company.___(1) All permanent employees and officers of IDBP who
were continuously in the service of IDBP for a period of one, year or more immediately
before the effective date shall stand transferred to and become the employees
of the Company as on the effective date on the same terms und conditions as
were applicable to them before the effective date. The term and conditions
applicable to the retired employees of IDIW shall continue to apply to such
retired employees.
(2)
Notwithstanding anything contained in any law, contract agreement or conditions
of service no person transferred to the Company pursuant to sub-section (1)
shall be entitled to any compensation as a consequence of transfer to the
Company.
7.
Contracts and proceedings.___(1) All contracts subsisting or having effect,
immediately before the effective date to which IDBP may have been a party or
beneficiary shall be deemed to have been made by the Company and shall remain
in force for all intents and purposes.
(2) All
proceedings by or against or relating to IDBP pending on the effective date
before any court tribunal arbitrator or any other authority shall be continued
prosecuted defended, enforced and executed by or against the Company in the
same manner and to the same extent as might have been continued, prosecuted, defended
enforced and executed by or against IDBP as the case may be and for the
purposes of the proceedings under Industrial Development Bank of Pakistan
Ordinance. 1961 (XXXI of 1961) the relevant provisions of Industrial
Development Bank of Pakistan Ordinance. 1961 (XXXI of 1961) shall, mutatis
mutandis, continue to apply to these proceedings notwithstanding the repeal of
tile Industrial Development Bank of Pakistan Ordinance 1961 (XXXI or 1961).
8.
Certain guarantees to remain in force.____ Notwithstanding the repeal or the said Industrial
Development Bank of Pakistan Ordinance. 1961 (XXXI of 1961) all guarantees
given by the Government of Pakistan in favour of foreign and local institutions
which extended loans to IDBP shall remain in force as though these guarantees
were given on behalf of IDBP.
9.
Bar of jurisdiction-No court, tribunal, arbitrator or authority shall
question or permit to be called in question, any transfer or order made,
anything done or action taken or purported to be made done or taken under this
Act.
10. Indemnity.___
No suit, prosecution or other legal
proceedings shall lie against the Federal Government. Slate Blink of Pakistan,
IDBP the Company or any other person for anything which is in good faith done
or intended to be done under this Act or any rule or order made thereunder.
11. Act to override other laws, etc.____The
provisions of this Act shall have effect notwithstanding anything contrary
contained in any other law for the time being in force or in any agreement,
contract decree, order or any other instrument whatsoever.
12. Power to make rules.-The Federal Government may by notification in the
official Gazette, make rules for currying out the purposes or this Act.
13. Removal or 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, for the purpose of removing the difficulty:---
Provided that no such power shall be
exercised after the expiry of two years from the commencement or this Act.
14. Repeal.____(1)
immediately after the dissolution of IDBP in pursuance of clause (c) of
sub-section (2) of section 5. the Industrial Development Bank of
(2) This Act, save as is provided in
sub-section (1) of section 3 and section 8. shall stand repealed after the
expiry of a period of eighteen months from its commencement anti subject to
sub-section (3) the Company shall continue to operate.
(3) The top management of the Company
under section 6 as soon as may be possible after the commencement of this Act
shall make arrangements for a viable public private partnership or
privatization of the Company.
15. Validation of actions, etc.-Anything done, actions taken, orders passed
instruments made, notifications issued agreements made, proceedings initiated,
processes or communication issued, powers conferred assumed or exercised, by
the Industrial Development Rank of Pakistan (IDBP) or its officers on or after
the 26th November. 2009 and before the commencement of this Act, shall be
deemed to have been validly done, made, issued, taken, initiated, conferred
assumed, and exercised and provisions of the Act shall have, and shall be
deemed always to have had, effect accordingly.
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