THE STATE BANK OF SIKKIM (ACQUISITION OF SHARES) AND  
MISCELLANEOUS PROVISIONS ACT, 1982 

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ARRANGEMENT OF SECTIONS 
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SECTIONS 

1.  Short title and commencement. 
2.  Definitions. 

CHAPTER I 

PRELIMINARY 

CHAPTER II 

ACQUISITION AND TRANSFER OF CERTAIN SHARES OF SIKKIM BANK 

3.  Vesting in the Central Government of certain shares of Sikkim.  

VESTING OF UNDERTAKINGS OF SIKKIM BANK IN THE CENTRAL GOVERNMENT 

CHAPTER III 

4.  Vesting of undertaking of Sikkim Bank. 
5.  General effect of vesting. 
6.  Vesting of the shares and undertakings of Sikkim Bank in the State Government. 
7.  Power  of  State  Government  to  direct  vesting  of  the  undertakings  of  Sikkim  Bank  the  Sikkim          

Co-operative bank. 

8.  Payment of amounts. 

CHAPTER IV 

PAYMENT OF AMOUNTS 

CHAPTER V 

MANAGEMENT, ETC., OF THE UNDERTAKINGS OF SIKK 

9.  Management, etc., of the undertakings of Sikkim Bank 
10.  Date of delivery, possession of property acquired and documents relating  thereto. 

CHAPTER VI 

PROVISIONS RELATING TO THE EMPLOYEES OF THE SIKKIM BANK 

11.  Transfer  of  service  of  existing  officers  and  employees  of  the  Sikkim  Bank  to  the                             

co-operative bank. 

CHAPTER VII 

MISCELLANEOUS 

12.  Act to have overriding effect. 
13.  Protection of action taken in good faith. 
14.  Penalties. 
15.  Offences by companies. 
16.  Delegation of powers. 
17.  Power of Central Government to make rules. 
18.  Power to remove difficulties. 

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SECTIONS 

19.  References to Sikkim Bank in other laws. 
20.   Dissolution of Sikkim Bank. 

THE SCHEDULE. 

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THE STATE BANK OF SIKKIM (ACQUISITION OF SHARES) AND  
MISCELLANEOUS PROVISIONS ACT, 1982 

ACT NO. 62 OF 1982 

[6th November, 1982.] 

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 I 

PRELIMINARY 

1.  Short  title  and  commencement.—(1)  This  Act  may  be  called  the  State  Bank  of  Sikkim 

(Acquisition of Shares) and Miscellaneous Provisions Act, 1982. 

(2)  It  shall  come  into  force  on  such  date  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “appointed day” means the date on which this Act comes into force; 

(b) “co-operative bank” means the Sikkim State Co-operative Bank Limited, a society registered 

under the Sikkim Co-operative Societies Act, 1978 (Sikkim Act No. 12 of 1978); 

(c) “notification” means a notification published in the Official Gazette; 

(d) “prescribed” means prescribed by rules made under this Act; 

(e) “Sikkim Bank” means the State Bank of Sikkim constituted under the State Bank of Sikkim 

Proclamation, 1968; 

(f) “State Government” means the State Government of Sikkim; 

(g) “United Commercial Bank” means the United Commercial Bank constituted under section 3 

of the Banking Companies (Acquisition and Transfer of Undertakings)Act, 1970 (5 of 1970); 

(h) words and expressions used herein and not defined but defined in the Companies Act,  1956  

(1 of 1956), shall have the meanings respectively assigned to them in that Act. 

ACQUISITION AND TRANSFER OF CERTAIN SHARES OF SIKKIM BANK 

CHAPTER II 

3. Vesting in the Central Government of certain shares of Sikkim Bank.—(1) On the appointed 
day, all the shares in the share capital of the State Bank of Sikkim, other than the shares held by the State 
Government, shall, by virtue of this Act, stand transferred to, and shall vest in, the Central Government. 

(2) All the shares which have vested in the Central Government under sub-section (1) shall, by force 
of such vesting, be freed and discharged of all trusts, liabilities, obligations, mortgages, charges, liens and 
other encumbrances affecting them, and any attachment or injunction or any decree or order of any court, 
tribunal or other authority restricting the use of such shares in any manner shall be deemed to have been 
withdrawn. 

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(3) Notwithstanding the transfer of the shares of the Sikkim Bank to the Central Government under 
sub-section (1), any person holding such shares, who immediately before the appointed day is entitled to 
payment of dividend on such shares, shall be entitled to receive from the co-operative bank— 

(a)  all  dividends  accruing  due  on  his  shares in  respect  of the  half-year  which  ended  before  the 

appointed day and remaining unpaid; 

(b)  dividends  calculated  at  a  rate  to  be  specified  by  the  Central  Government  in  respect  of  any 
period  immediately  preceding  the  appointed  day  for  which  the  Sikkim  Bank  had  not  declared  any 
dividend. 

CHAPTER III 

VESTING OF UNDERTAKINGS OF SIKKIM BANK IN THE CENTRAL GOVERNMENT 

4. Vesting of undertaking of Sikkim Bank.—On the appointed day, the undertakings of the Sikkim 

Bank shall, by virtue of this Act, stand transferred to, and shall vest in, the Central Government. 

 5. General effect of vesting.—(1) The undertakings of the Sikkim Bank shall be deemed to include 
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  appointed  day  in  the  ownership,  possession,  power  or  control  of  the 
Sikkim  Bank  in  relation  to  its  undertakings,  and  all  books  of  account,  registers,  records  and  all  other 
documents  of  whatever  nature  relating  thereto  and  shall  also  be  deemed  to  include  all  borrowings, 
liabilities  and  obligations  of  whatever  kind  then  subsisting  of  the  Sikkim  Bank  in  relation  to  its 
undertakings. 

(2) 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  appointed  day  and  to  which  the  Sikkim  Bank  is  a  party  or  which  are  in 
favour of the said Bank shall be of as full force and effect against or in favour of the Central Government. 

(3) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any 
business  of  the  undertakings  which  have  been  transferred  under  section  4  is  pending  by  or  against  the 
Sikkim Bank, the same shall not abate, be discontinued, or be in any way prejudicially affected by reason 
of the transfer of the undertakings of the Sikkim Bank or of anything contained in this Act, but the suit, 
appeal  or  other  proceeding  may  be  continued,  prosecuted  or  enforced  by  or  against  the  Central 
Government. 

6.  Vesting  of  the  shares  and  undertakings  of  Sikkim  Bank  in  the  State  Government.—(1) 
Notwithstanding anything contained in sections 3, 4 and 5, the Central Government shall, as soon as may 
be, after the commencement of this Act, direct, by notification, that the shares of the Sikkim Bank which 
have vested in the Central Government under section 3 and the undertakings of the Sikkim Bank which 
have vested in the Central Government under section 4 shall, instead of continuing to vest in the Central 
Government, vest in the State Government of Sikkim, on the date of the notification. 

(2) Where the shares and the undertakings of the Sikkim Bank vest In the State Government under 
sub-section  (1),  the  State  Government  shall,  on  and  from  the  date  of  such  vesting,  be  deemed  to  have 
become  the  owner  in  relation  to  such  shares  and  undertakings  and  all  the  rights  and  liabilities  of  the 
Central  Government  in  relation  to  such  shares  and  undertakings  shall,  on  and  from  the  date  of  such 
vesting, be deemed to have become the rights and liabilities, respectively, of the State Government. 

7. Power of State Government to direct vesting of the undertakings of Sikkim Bank the Sikkim 
Co-operative  bank.—(1)  Notwithstanding  anything  contained  in  sections  4,  5  and  6,  the  State 
Government may, if it is satisfied that the co-operative bank is willing to comply, or has complied, with 
such terms and conditions as that Government may think fit to impose, including the terms and conditions 
regarding allotment of its shares, direct, by notification, that the undertakings of the Sikkim Bank which 
have  vested  in  the  Central  Government  under  section  4  and  thereafter  in  the  State  Government  under 
section 6, shall, instead of continuing to vest in the State Government, vest in the co-operative bank either 

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on the date of the notification or on such earlier or later date (not being a date earlier than the appointed 
day) as maybe specified in the notification. 

(2) Where the undertakings of the Sikkim Bank vest in the co-operative bank under sub-section (1), 
that bank shall, on and from the date of such vesting, be deemed to have become the owner in relation to 
such undertakings, and all the rights and liabilities of the Central Government or the State Government in 
relation to such undertakings shall, on and from the date of such vesting, be deemed to have become the 
rights and liabilities, respectively, of the co-operative bank. 

CHAPTER IV 

PAYMENT OF AMOUNTS 

8.  Payment  of  amounts.—(1)For  the  transfer  to,  and  vesting  in,  the  Central  Government,  of  the 
shares of the Sikkim Bank under section 3, there shall be given by the Central Government to the holders 
of  such  shares  in  cash  and  in  the  manner  specified  in  the  Schedule,  an  amount  of  rupees  eight  lakhs 
twelve thousand two hundred and ninety-five. 

(2)The amount specified in sub-section (1) shall carry simple interest at the rate of five and a half per 
cent.  per  annum  for  the  period  commencing  on  the  appointed  day  and  ending  on  the  date  on  which 
payment of such amount is made to the shareholders. 

CHAPTER V 

MANAGEMENT, ETC., OF THE UNDERTAKINGS OF SIKKIM BANK 

9. Management, etc., of the undertakings of Sikkim Bank.—(1) The State Government in which 
the  undertakings  of  the  Sikkim  Bank  have  vested  under  section  6  shall  be  entitled  to  exercise  all  such 
powers  and  do  all  such  things  as  the  Sikkim  Bank  is  authorised  to  exercise  and  do  in  relation  to  its 
undertakings. 

(2) The general superintendence, direction, control and management of the affairs and business of the 
undertakings of the Sikkim Bank which have vested under section 4 in the Central Government and under 
section 6in the State Government shall, where a direction has been made by the State Government under 
sub-section (1) of section 7, vest in the co-operative bank specified in such direction, and, thereupon, the 
co-operative bank shall be entitled to exercise all such powers and do all such things as the Sikkim Bank 
is authorised to exercise and do in relation to its undertakings. 

10. Date of delivery, possession of property acquired and documents relating thereto.—(1) On 
the vesting of the undertakings of the Sikkim Bank in the State Government under section 6, every person 
in  whose  possession  or  custody  or  under  whose  control  any  property  referred  to  in  sub-section  (1)  of 
section 5 may be, shall deliver the property to the State Government forthwith. 

(2)  Any  person,  who,  on  the  appointed  day,  has  in  his  possession  or  under  his  control  any  books, 
documents or other papers relating to the undertakings of the Sikkim Bank which have vested in the State 
Government  under  section  6  and  which  belong  to  that  Bank,  or  would  have  so  belonged  if  the 
undertakings of the Sikkim Bank had not vested in the State Government, shall be liable to account for 
the said books, documents or other papers to the State Government and shall deliver them up to the State 
Government. 

(3) The State Government may take, or cause to be taken, all necessary steps for securing possession 

of all properties which have vested in that Government under this Act. 

CHAPTER VI 

PROVISIONS RELATING TO THE EMPLOYEES OF THE SIKKIM BANK 

11. Transfer of service of existing officers and employees of the Sikkim Bank to the co-operative 
bank.—(1)  Every  officer  or  other  employee  of  the  Sikkim  Bank  (excepting  the  Managing  Director 
thereof) in the employment of the Sikkim Bank immediately before the appointed day shall become,— 

(a) an officer or other employee of the State Government on any from the appointed day, and 

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(b) where the undertakings of the Sikkim Bank are directed, under sub-section (1) of section 7, to 
vest in the co-operative bank, an officer or other employee of the co-operative bank on and from the 
date of such vesting, 

and shall hold his office or service under the State Government or the co-operative bank, as the case may 
be,  with  the  same  rights  and  privileges  as  to  pension,  gratuity  and  other  matters  as  would  have  been 
admissible  to  him  if  there  had  been  no  such  vesting  and  shall  continue  to  do  so  unless  and  until  his 
employment under the State Government or the co-operative bank, as the case may be, is duly terminated 
or until his remuneration and other conditions of service are duly altered by the State Government, or by 
the co-operative bank, as the case may be. 

(2)  Any  person  who,  on  the  appointed  day,  is  entitled  to,  or  is  intercept  of,  a  pension  or  other 
superannuation  or  compassionate  allowance  or  benefit  from  the  Sikkim  Bank  or  any  provident  fund, 
pension  or  other  fund  or  any  authority  administering  such  fund  shall  be  entitled  to  be  paid  by,  and  to 
receive  from,  the  co-operative  bank  or  any  provident  fund,  pension  or  other  fund  or  any  authority 
administering such fund, the same pension, allowance or benefit so long as he observes the conditions on 
which the pension, allowance or benefit was granted, and if any question arises as to whether he has so 
observed such conditions, the question shall be determined by the State Government. 

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), no appointment made or 
promotion,  increment  in  salary,  pension  allowance  or  any  other  benefit  granted  to  any  person  after  the 
16th day of November, 1976, and before the appointed day which would not ordinarily have been made 
or  granted  or  which  would  not  ordinarily  have  been admissible  under  the  rules or  authorisations  of  the 
Sikkim Bank or of any provident fund or other fund in force prior to the 16th day of November, 1976, 
shall  have  effect  or  be  payable  or  claimable  from  the  co-operative  bank  or  from  any  provident  fund, 
pension or other fund or from any authority administering the fund, unless the State Government has, by 
general  or  special  order,  confirmed  the  appointment,  promotion  or  increment,  or  has  directed  the 
continued grant of the pension, allowance or other benefit, as the case may be. 

(4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any 
other law for the time being in force, the transfer of the services of any officer or other employee of the 
Sikkim  Bank  to  the  State  Government  or  the  co-operative  bank  shall  not  entitle  such  officer  or  other 
employee to any compensation under that Act or under any other law for the time being in force and no 
such claim shall be entertained by any court, tribunal or other authority. 

(5)  Any  person  holding  office  as  Managing  Director  of  the  Sikkim  Bank  immediately  before  the 
appointed  day  shall  be  deemed  to  have  vacated  his  office  as  such  on  the  appointed  day  and, 
notwithstanding anything contained in this Act or in any other law for the time being in force or in any 
agreement or contract, he shall not be entitled to any amount from the Sikkim Bank, State Government, or 
the co-operative bank for the loss of office or for the premature termination of any agreement or contact 
relating  to  his  employment,  except  such  pension,  amount  or  other  benefit  which  the  co-operative  bank 
may grant to him, having regard to what that person would have received as an officer of the Sikkim Bank 
if this Act had not been passed and if he had retired from his employment in the ordinary course. 

(6) Where the Managing Director of the Sikkim Bank has, after the 16th day of November, 1976 and 
before the appointed day, been paid any sum by way of compensation or gratuity, the co-operative bank 
shall  be  entitled  to  claim  refund  of  any  sum  so  paid  if  the  payment  is  not  confirmed  by  the  State 
Government by general or special order. 

CHAPTER VII 

MISCELLANEOUS 

12.  Act  to  have  overriding  effect.—The  provisions  of  this  Act  shall  have effect  notwithstanding 
anything inconsistent therewith contained in any other law for the time being in force or in any instrument 
having effect by virtue of any law, other than this Act, or in any decree or order of any court, tribunal or 
other authority. 

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13.  Protection  of  action  taken  in  good  faith.—(1)  No  suit,  prosecution  or  other  legal  proceeding 
shall lie against the Central Government or any officer of that Government or the State Government, or 
the  co-operative  bank  or  any  officer  of  the  State  Government  or  the  co-operative  bank  or  other  person 
authorised  by  the  Central  Government  or  the  State  Government  or  the  co-operative  bank,  for  anything 
which is in good faith done or intended to be done under this Act. 

(2) No suit or other legal proceeding shall lie against the Central Government or any officer or other 
employee of that Government or the State Government or the co-operative bank or any officer or other 
employee  of  the  State  Government  or  of  the  co-operative  bank  or  other  person authorised  by  the  State 
Government or the co-operative bank, for any damage caused or likely to be caused by anything which is 
in good faith done or intended to be done under this Act. 

14. Penalties.—Any person who,— 

(a) having in his possession, custody or control any property forming part of the undertakings of 
the  Sikkim  Bank,  wrongfully  withholds  such  property  from  the  Central  Government,  or  the  State 
Government or the co-operative bank; or 

(b) wrongfully obtains possession of, or retains, any property forming part of any undertaking of 
the  Sikkim  Bank  or  wilfully  withholds  or  fails  to  furnish  to  the  Central  Government  or  the  State 
Government or the co-operative bank, or any person or body of persons specified by that Government 
or the State Government or the co-operative bank, any document relating to such undertaking which 
may be in his possession, custody or control or fails to deliver to the Central Government, or the State 
Government  or  the  co-operative  bank  or  any  person   or  body  of  persons  specified  by  the  Central 
Government or the State Government or the co-operative bank, any assets, books of account, registers 
or other documents in his possession, custody or control, relating to the undertakings of the Sikkim 
Bank; or 

(c) wrongfully removes or destroys any property forming part of any undertaking of the Sikkim 
Bank or prefers any claim under this  Act which he knows or has reasonable cause to believe to be 
false or grossly inaccurate, 

shall be punishable with imprisonment for a term which may extend to two years, or with fine which may 
extend to ten thousand rupees, or with both. 

15.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company, every person who at the time the offence was committed was in charge of, and was responsible 
to, the company for the conduct of the business of the company, as well as the company, shall be deemed 
to be guilty of the offence and shall be liable to be proceeded against any punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment, if he proves that the offence was committed without his knowledge or that he had exercised 
all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is attributable to any neglect on the part  of, any director, manager, secretary or other 
officer of the company, such director, manager, secretary, or other officer shall be deemed to be guilty of 
that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a) “company” means anybody corporate and includes a firm or other association of individuals; 

and 

(b) “director”, in relation to a firm, means a partner in the firm. 

16. Delegation of powers.—(1) The Central Government may, by notification, direct that all or any 
of the powers exercisable by it under this Act, other than the powers conferred by sections 17 and 18, may 
also be exercised by such person or persons as may be specified in the notification. 

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(2) Whenever any delegation of power is made under sub-section (1), the person to whom such power 

has been delegated shall act under the direction, control and supervision of the Central Government. 

17.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 

notification, make rules for carrying out the provisions of this Act. 

(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it 
is made, before each House of Parliament, while it is in session, for a total period of thirty days which 
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the 
session  immediately  following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in 
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall 
thereafter have effect only in such modified from or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that rule. 

18. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this 
Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the 
difficulty: 

Provided that no such order shall be made after the expiry of a period of two years from the appointed 

day. 

19. References to Sikkim Bank in other laws.—On and from the appointed day, any reference to 
Sikkim Bank in any law (other than this Act or the State Bank of Sikkim Proclamation, 1968)or in any 
contract or other instrument shall, except as otherwise provided in any general or special order made by 
the Central Government, be deemed to be a reference to the co-operative bank. 

20. Dissolution of Sikkim Bank.—On the date of the issue of notification under sub-section (1) of 
section 6, the Sikkim Bank shall stand dissolved, and the State Bank of Sikkim Proclamation, 1968, shall 
stand repealed; and the provisions of section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply 
to such repeal as if the said Proclamation were a Central Act. 

___ 

THE SCHEDULE 

[See section 8(1)] 

MANNER OF PAYMENT OF AMOUNT FOR THE TRASNFER OF SHARES OF THE STATE BANK OF SIKKIM TO 
THE CENTRAL GOVERNMENT 

1. In this Schedule, “shareholder” means any person who, immediately before the appointed day, is 

registered as the holder of a share in the Sikkim Bank, other than the State Government of Sikkim. 

2. For every share in the share capital of the Sikkim Bank which, by reason of this Act, is transferred 
to and vested in the Central Government, the Central Government shall pay to every holder thereof in the 
manner specified in paragraph 3 of this Schedule an amount calculated at the rate of rupees fifty-five per 
share. 

3. Every person who is registered as the holder of a share in the Sikkim Bank on the appointed day 
and whose shares have been acquired under the provisions of this Act shall, for every such share so held 
by him, be paid an amount calculated at the rate specified in paragraph 2 by cheque drawn on the Reserve 
Bank of India. 

_____ 

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