State Bank of India (Subsidiary Banks) Act,1959
Act No : 38
Section :
Compensation payable by the State Bank in respect of the Bank ofpatiala, the Saurashtra Bank and the Hyderabad Bank.
14. Compensation payable by the State Bank in respect of the Bank of patiala, the Saurashtra Bank and the Hyderabad Bank.- (1) The State Government of Punjab in respect of the Bank of Patiala, the 1*[State Government of Gujarat] in respect of the Saurashtra Bank and the Reserve Bank in respect of the Hyderabad Bank, shall be given, by reason of the provisions of this Act or of the amendments contained in Part V or Part VII of the Third Schedule, such compensation by the State Bank as is determined in accordance with the principles contained in the First Schedule. (2) The amount of compensation to be given in accordance with the principles contained in the First Schedule shall be determined in the first instance by the State Bank, and shall be offered by it to the State Government of Punjab, the 1*[State Government of Gujarat], or the Reserve Bank, as the case may be, in full satisfaction of the compensation payable under sub-section (1): Provided that in determining the amount of compensation to be offered to the State Government of Punjab or the 1*[State Government of Gujarat], the State Bank shall consult the Reserve Bank. (3) If the amount of compensation offered by the State Bank in terms of sub-section (2) is not acceptable to the State Government of Punjab, the 1*[State Government of Gujarat] or the Reserve Bank as the case may be, the State Government concerned or the Reserve Bank, may before such date as may be notified by the Central Government in the Official Gazette, request the Central Government to have the matter referred to the Tribunal for decision, and where any such request is received, the Central Government shall refer the matter accordingly. (4) If, before the date notified under sub-section (3), the State Government of Punjab, the 1*[State Government of Gujarat] or the Reserve Bank, as the case may be, has not made any such request, the amount of compensation offered by the State Bank, and where a reference has been made to the Tribunal, the amount determined by it, shall be the compensation payable under sub-section (1) and shall be final and binding on all parties concerned. ---------------------------------------------------------------------- 1. Subs. by the Bombay Reorganisation (Adaptation of Laws on Union Subjects) Order, 1961, for "State Government of Bombay" (w.e.f. 1-5-1960). 183 (5) The amount of compensation shall be paid by a cheque drawn on the Reser ve Bank.
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