The state bank of Sikkim acquisition of shares and miscellaneous provisions act contains 20 sections stating its commencement and various powers of central and state government on the shares and the undertaking of the bank under different circumstances.
Apart from the preamble from section 2 till section 20 various procedures for the functions of the bank is described. Section 2 deals with the definition clauses mainly defining co operative banks and united commercial bank in 2(b) and 2(g) respectively. Section 2(h) emphasis that the words and expressions used in the act is having the definite meaning given the companies act 1956 and it has the same effect or meaning as prescribed in the companies act. Section 3 and 4 dealt with the authority of the central and state government on the shares and undertakings of the bank. By virtue of section all shares other than where the state government is the holder of those shares of state bank of Sikkim, the rest of the shares are vested or entrusted on the central government. Section 3 confers that such shares vested to the central government should not have any liabilities including mortgages, liens, charges or any other encumbrances. By virtue of section 4 the undertakings of the bank is transferred to the central government. Section 5 says about the general effect of the undertakings. In sub clause 1 of section 5 clearly states that the undertakings transferred includes the assets including the reserve funds, cash balance and also the liabilities and obligations at the time of transfer existed in the bank. Any litigation or legal proceedings initiated against the bank at the time of transfer on the appointed day shall not be abated or discontinued and the same proceedings can be initiated against the central government as per sub clause 3 of section 5.
Section 6 is another important section which specifies that, any shares or undertakings vested in the central government by virtue of section 3 and 4 shall be vested in the state government by giving proper notification from the date of notification the state government has the vested power on the shares and undertaking transferred by virtue of section 6. Section 7 and 8 deals with the power of state government to transfer the shares and undertakings vested on the state government to the co –operative banks. If the co- operative bank complies the terms and conditions the shares and undertakings shall be transferred with the co-operative banks b virtue of section 7. Section 8 deals with the payment mode while vesting the shares according to section 3 to the central government. By virtue of section 9 the state government has every right to exercise the powers of the bank in every undertaking of the bank vested in state government. Section 10 deals with the possession of all properties or documents and its delivery to the state government. Section 11 deals with the transfer of employees to the co –operative bank. Any person who is transferred to the cooperative bank from the Sikkim bank is entitled to every benefit including pensions, gratuity, provident fund and other allowances etc as it had been allotted to them in the Sikkim bank by virtue of section 11. Section 12 deals with the overriding effects of the provisions of the act.
Section 13 confers protection for any act done in good faith or with bonafide intention and section 14 deals with penalties. Imprisonment for two years or fine or both can be imposed by virtue of section 14 to any wrongful possession or destruction of property which forms the part of the undertaking of the bank.
Any offences committed by the persons in a company shall be deemed to be guilty shall undergo legal proceedings and punishment according to section 15 of the act. Section 16 deals with the delegation or distribution of powers, but it does not includes the power of government to make rules according to section 17 and power to remove difficulties according to section 18. Section 19 deals with the references of Sikkim bank in other laws. Section 20 deals with the dissolution which states that the state bank of Sikkim proclamation 1968 is repealed and section 6 of general clauses act 1897 is applicable to the repealed act.