State Bank of Sikkim (Acquisition of Shares) and Miscellaneous Provisions Act,1982
Act No : 62
Section : PRELIMINARY
STATE BANK OF SIKKIM (ACQUISITION OF SHARES) AND MISCELLANEOUS PROVISIONS ACT, 1982
62 of 1982
6th November, 1982
STATEMENT OF OBKECTS AND REASONS In keeping with the accent on rural and agricultural development as part of the strategy for the country's rapid economic progress, Government appointed a Study Team on Institutional Arrangements for Agricultural Credit in Sikkim under the chairmanship of Dr. C. D. Datey. a former Executive Director of the Reserve Bank. One of the Terms of reference of the Team was to consider the question of setting up a Regional Rural Bank in Sikkim on the pattern of similar banks established in the country.
In its report submitted to the Government, the Team was broadly of the view that in order lo meet the banking needs of Sikkim, it would be appropriate to set up a single apex institution which would combine both agricultural and non-agricultural banking operations and also transact Government business. The specific recommendation in this context related to the setting up of a State Co-operative Bank in Sikkim to which the undertakings of the existing State Bank of Sikkim, a bank stablished under the State Bank of Sikkim Proclamation dated the 24th June, 1963, may be transferred. This recommendation was made solely on the consideration that in Sikkim there is no scope for more than one banking institution of the comprehensive type proposed and that some of the advantages of a State Cooperative Bank will not be available to the State Bank of Sikkim if its separate identity is retained as a banking institution under the Banking Regulstion Act, 1949.
This recommendation was accepted in principle and the details of the proposals for implementing this recommendation had been worked out. The Sikkim Legislative Assembly has passed the Sikkim Co-operative Societies Act, 1978, and the Sikkim State Co-operative Bank Ltd. had already been registered under that Act. It is now proposed to acquire the undertakings of the State Bank of Sikkim for the purpose of transferring them to the Sikkim State Co-operative Bank Ltd. The Bill seeks to achieve this object. 2, The Bill provides, among other things, for the transfer to. and vesting of all the shares of the State Bank of Sikkim. other than those held by the State Government of Sikkim, and also the undertakings of the said Bank in, the Central Government. Thereafter, the Central Government shall direct, by a notification, that the shares vested in it as also the undertakings of the State Bank of Sikkim shall vest in the State Government of Sikkim. The State Government would direct, by a notification, that the undertakings of the State Bank of Sikkim shall be transferred to, and vested in, the Sikkim State Co-operative Bank Ltd.
The Bill also provides for the transfer of the service of the employees of the State Bank of Sikkim to the Sikkim State Co-operative Bank Ltd. and also for the payment of amounts to the shareholders whose shares are proposed to be acquired and for certain other incidental and consequential matters. Gaz. of Ind.. 13-8-1982, Pt. II, S 2, Ext., p. 24 (No. 43).
An Act to provide, in the public interest, for the acquisition of certain shares of the State
Bank of Sikkim for the purpose of better consolidation and extension of banking facilities
in the State of Sikkim and for matters connected therewith or incidental thereto.
WHEREAS for the purpose of better consolidation and extension of banking facilities in
the State of Sikkim, it is expedient, to provide for a single apex banking institution in
that State, and for that purpose to provide for the acquisition of certain shares of the
State Bank of Sikkim and for matters connected therewith or incidental thereto;
BE it
enacted by Parliament in the Thirty-third Year of the Republic of India as follows:-
CHAPTER 1 PRELIMINARY
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