State Bank of India Act, 1955

50. Power of Central Board to make regulations

(1) The Central Board may, after consultation with the Reserve Bank and with the previous sanction of the Central Government, ¹²⁵, [by notification in the Official Gazette,] make regulators, not inconsistent with this Act and the rules, made thereunder, to provide for all matters for which provision is expedient for the purpose of giving effect to the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for-

(a) the nature of shares of the State Bank, the manner in which and the conditions subject to which shares may be held and transferred and generally all matters relating to the rights and duties of shareholders;

⁴² [(b) the maintenance of share register of shareholders, and the particulars to be entered in the principal register in addition to those specified in section 13, the areas to be served by each branch register, the inspection and closure of the registers and all other matters connected therewith;

(c) the holding and conduct of elections under this Act, including the allocation of elected directors to the various areas ¹²⁶[falling within the jurisdiction of each local head office], and the final determination of doubts or disputes regarding the qualifications of candidates for election or regarding the validity of elections;

¹²⁷ [(ca) the determination of areas falling within the jurisdiction of each local head office;]

¹²⁸ [(d) the powers, functions and duties of Local Boards and the restrictions, conditions or limitations, if any, subject to which they may be exercised or performed, the formation and constitution of Local Committees (including the number of members of any such committee) and of committees of Local Boards, the powers, functions and duties of such Committees, the holding of meetings of local Committees and committees of local Boards and the conduct of business thereat;]

(e) the fees and allowances which may be paid to directors, or members of Local Boards of Local Committees for attending any meetings of the Central Board or of its committees or of the Local Boards or Local Committees, as the case may be, or for attending to any other work of the State Bank;

(f) the manner in which the business of the Central Board ¹²⁹[or of Local Boards] shall be transacted and the procedure to be followed at the meetings thereof;

(g) the formation of Committees of the Central Board and the delegation of powers and functions of the Central Board to such committees and the conduct of business in such committees;

¹³⁰ [***]

(i) the manner in which general meetings shall be convened, the procedure to be followed thereat and the manner in which voting rights may be exercised;

(j) the holding of meetings of shareholders ¹³¹[***] and the business to be transacted thereat;

(k) the manner in which notices may be served on behalf of the State Bank upon shareholders or other persons;

(l) the provision of seals for the State Bank and the manner and effect of their use;

(m) the conduct and defense of legal proceedings and the manner of signing pleadings;

(n) the duties and conduct of officers, other employee, advisers and agents of the State Bank;

¹³² [(o) the establishment and maintenance of superannuation pension, provident or other funds for the benefit of the employees of the State Bank or of the dependents of such employees or for the purposes of the State Bank, and the granting of superannuation allowances, annuities and pensions payable out of any such fund;]

(p) the form and manner in which contracts binding on the State Bank may be executed;

¹³³ [(q) the terms, conditions, stipulations, restrictions and limitations, if any, in the transaction by the State Bank of its businesses in regard to the advancing or lending of money or the discounting or purchase of any instrument, negotiable or otherwise, with or without reference to any security, purpose, amount, period or otherwise;]

(r) the conditions subject to which alone, advances may be made to directors, members of Local Board or of Local Committees or officers of the State Bank, or the relatives of such directors, members or officers or to companies, firms or individuals with which or with whom such directors, members, officers, or relatives are connected as partners, directors, managers, servants, shareholders or otherwise;

(s) the statement, returns, and forms that are required for the purposes of this Act;

(t) the payment of dividends, including interim dividends;

(u) generally for the conduct of the business of the State Bank.

¹³⁴ [(2A) All regulations made under this section shall have effect from such earlier or later date as may be specified in the regulations.]

(3) Notwithstanding anything contained in this section, the first regulations shall be made by the Reserve Bank with the previous sanction of the Central Government, and thereupon shall be deemed to be the regulations made by the Central Board under this section and shall have force accordingly until they are amended or repealed.

¹³⁵ [(4) Every regulation shall, as soon as may be after it is made under this Act by the Central Board, be forwarded to the Central Government and that Government shall cause a copy of the same to be laid 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 regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form 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 regulation.]

Comment: We may also note that the second requirement for the applicability of Rule 22(1) (c) as amended is that after having completed 20 years of pensionable service the concerned member of the fund irrespective of age i.e. even being less than 50 years of age can invoke the benefit of the said provision by making a request in writing for getting proportionate pension. V. Kasturi v. Managing Director, State Bank of India AIR 1999 SUPREME COURT 81

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