Banks (Transfer of Assets and Liabilities) Act, 1974

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THE BANKS (TRANSFER OF ASSETS AND LIABILITIES) 
ACT, 1974 
 
  
       CONTENTS 
1.  Short title, extent and commencement 
2.  Definitions 
3.  Act to over-ride other laws 
4.  Vesting of specified offices and branches 
5.  Contracts and proceedings 
6.  Excepted liabilities 
7.  Delivery of undertaking 
8.  Police assistance 
9.  Evaluation 
10.  Validity of action of officers of specified offices and branches 
11.  Extension of limitation 
12.  References in other laws 
13.  Penalties 
14.  Bar of Jurisdiction 
15.  Indemnity 
16.  Power to make rules 
17. Removal of difficulties 
18.  [Omitted] 
THE SCHEDULE  

 
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THE BANKS (TRANSFER OF ASSETS AND LIABILITIES) ACT, 1974 
ACT NO. XI OF 1974 
[1st March, 1974] 
An Act to provide for the transfer to the National Bank of Pakistan of certain assets and liabilities of 
the Eastern Mercantile Bank Limited and the Eastern Banking Corporation Limited. 
WHEREAS it is expedient to provide for the transfer to the National Bank of Pakistan of certain 
assets and liabi lities of the Eastern Mercantile Bank Limited and the Eastern Banking Corporation 
Limited; 
It is hereby enacted as follows:— 
1. Short title, extent and commencement.___ (1) This Act may be called the Banks (Transfer 
of Assets and Liabilities) Act, 1974.  
(2) It extends to the whole of Pakistan.  
(3) It shall come into force at once. 
2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,— 
(i)  “National Bank of Pakistan” means the Bank established under section 3 of the 
National Bank of Pakistan Ordinance, 1949 (XIX of 1949);  
(ii)  “specified offices and branches” means the offices and branches of the Eastern 
Mercantile Bank Limited and the Eastern Banking Corporation Limited 
specified in the Schedule; and  
(iii)  “undertaking of a specified office or branch” includes subject to an order under 
section 6, 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 commencement of this Act in the possession, ownership, power or 
control of the specified office or branch in relation to the undertaking within 
Pakistan, or in relation to the business of such undertaking outside Pakistan, and 
all books of accounts, registers, records, and all other documents of whatever 
nature relating thereto, and also includes , except as hereinafter provided, all 
borrowings, liabilities and obligations of whatever kind then subsisting of the 
specified offi ce or branch in relation to the undertaking within the Federal 
Capital and the Provinces of the Punjab and Sind. 
 
 
 
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3. Act to over -ride other laws .—The Provisions of this Act and any rule or order made 
thereunder shall have effect notwithstanding anything contained in any other law for the time being in 
force, or in any contract, agreement, award, memorandum, article or other instrument whatsoever. 
4. Vesting of specified offices and branches .—On the commencement of this Act, the 
undertakings of each of the specified offices and branches shall stand transferred to, and vest in, the 
National Bank of Pakistan. 
5. Contracts and proceedings .___ (1) 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 commencement of 
this Act to which any of the specified offices and branches is a party or which are in favour of any 
specified office or branch shall be of as full force and effect against or in favour of the National Bank 
of Pakistan, and may be enforced or acted upon as fully and effectually, as if in the place of the specified 
office or branch the National Bank of Pakistan had been a party  thereto or as if the same had been in 
favour of the National Bank of Pakistan. 
(2) If any suit, appeal or other proceeding of whatever nature in relation to any business of the 
undertaking which is transferred by virtue of section 4 is pending by or against any specified office or 
branch, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of 
the transfer or of anything contained in this Act, but the suit, appeal or other proceeding may be 
continued, prosecuted and enforced by or against the National Bank of Pakistan. 
6. Excepted liabilities .—Notwithstanding anything contained in this Act, the Federal 
Government may by order direct that any borrowings, liabilities or obligations specified in such order 
shall not form part of the undertaking of a specified office or branch transferred by virtue of section 4. 
7. Delivery of undertaking.—Where any part of the undertaking of a specified office or branch 
is in the possession or under the control of any person, such person shall, within seven days of the 
commencement of this Act, deliver the same to a representative of the National Bank of Pakistan duly 
authorised in that behalf. 
8. Police assistance.___ (1) A magistrate may, by warrant, authorise a police officer not below 
the rank of Inspector to enter upon and search for any property of the undertaking of a specified office 
or branch in any premises where it may reasonably be expected to be found and to seize such property. 
(2) Any property seized under sub -section (1) shall be delivered to the National Bank of 
Pakistan. 
9. Evaluation.___ (1) The National Bank of Pakistan shall cause the assets and liabilities of the 
specified offices and branches to be evaluated and such evaluation to be duly audited by any auditor 
who is a chartered accountant within the meaning of the Chartered Accountants Ordinance, 1961 (X 
of 1961). 
(2) The report of an evaluation under sub -section (1), duly audited as required by that sub -
section, shall disclose the financial status of each of the specified offices and branches as at the date 
of transfer under section 4, and shall be submitted to the Federal Government within three months of 
such date. 
 
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(3) The Federal Government may, by order, issue directions as to the manner in which any 
excess of assets over liabilities or any shortfall therein of the specified offices and branches as at the 
date of the transfer by virtue of section 4 is to be disposed of or recovered, as the case may be. 
10. Validity of action of officers of specified offices  and branches.—Notwithstanding any 
cancellation of powers delegated by the managements of the Eastern Bank Limited and the Eastern 
Banking Corporation Limited to the officers of the specified offices and branches, all actions taken by 
such officers in good  faith between the 16th day of December, 1971, and the date of transfer of the 
undertakings of such offices and branches by virtue of section 4 shall be deemed to have been validly 
taken and shall have effect as if there had been no such cancellation of powers.  
11. Extension of limitation .—For the purpose of computing the period of limitation for the 
recovery of any money due to or from any of the specified offices and branches the period between 
the 16th December, 1971, and the date of transfer of the und ertakings of the specified offices and 
branches by virtue of section 4 shall be excluded.  
12. References in other laws.— Any reference to any of the specified offices and branches in 
any law, other than this Act, or in any contract or other instrument shall, in so far as it relates to any of 
the undertakings transferred by virtue of section 4 and if not inconsistent with any provision of this 
Act, be construed as a reference to the National Bank of Pakistan.  
13. Penalties.— Any person who contravenes any of the provisions of this Act or of any rule 
or order made thereunder or wilfully obstructs any person in carrying out the purposes of this Act shall 
be punishable with imprisonment for a term which may extend to three years , or with fine, or with 
both.  
14. Bar of Jurisdiction.___ (1) No court shall call in question, or permit to be called in question, 
anything done or action taken or purporting to be done or taken under this Act. 
(2) No court shall grant any injunction or m ake any order, nor shall any court entertain any 
proceedings, in relation to anything done or intended or purporting to be done under this Act. 
15. Indemnity.—No suit, prosecution or other legal proceeding shall lie against the Federal 
Government or the National Bank of Pakistan or any other person for anything in good faith done or 
intended or purporting to be done under this Act.  
16. Power to make rules .— The Federal Government may, by notification in the official 
Gazette, make such rules as appear to it  necessary or expedient for carrying out the purposes of this 
Act.  
17. Removal of 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 or expedient for the purpose of removing the difficulty. 
18. 1[Omitted]  
 
1Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981 (XXVII of 1981), s. 3 and Sch., II. 
 
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THE SCHEDULE 
 
[See section 2 (ii)] 
1. All offices, and branches of the Eastern Mercantile Bank Limited located at Karachi, Lahore, 
Gujranwala, Islamabad, Hyderabad, Sialkot and 1[Faisalabad]. 
2. All offices and branches of the Eastern Banking Corporation Limited located at K arachi, 
Lahore, Islamabad and 1[Faisalabad]. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
        RGN Uploaded on 26.1.2024 
          
1Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and Sch. II.