law: Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970  
  5.General effect of vesting.- 
  (1) The undertaking of each existing 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 commencement of this Act in the ownership, possession,
  
  power or control of the existing bank in relation to the undertaking, whether
  
  within or without India, and all books of accounts, registers, records and all
  
  other documents or whatever nature relating thereto and shall also be deemed to
  
  include all borrowings, liabilities and obligations of whatever kind then
  
  subsisting of the existing bank in relating to the undertaking.
  (2) If, according to the laws of any country outside India, the
  
  provisions of this Act by themselves are not effective to transfer or vest any
  
  asset or liability situated in that country which forms part of the undertaking
  
  of an existing bank to, or in, the corresponding new bank, the affaires of the
  
  existing bank in relation to such asset or liability shall, on and from the
  
  commencement of this Act, stand entrusted to the chief executive officer for
  
  the time being of the corresponding new bank, and the chief executive officer
  
  may exercise all powers and do all such acts and things as may be exercised or
  
  done by the existing bank for the purpose of effectively transferring such
  
  assets and discharging such liabilities.
  (3) The chief executive officer of the corresponding new bank
  
  shall, in exercise of the powers conferred on him by sub-section (2), take all
  
  such steps as may be required by the laws of any such country outside India for
  
  the purpose of effecting such transfer or vesting, and may either himself or
  
  through any person authorized by him in this behalf realize any asset and
  
  discharge any liability of the existing bank.
  (4) Unless otherwise expressly provided by 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 and to which the
  
  existing bank is a party or which are in favor of the existing bank shall be of
  
  as full force and effect against or in favor of the corresponding new bank, and
  
  may be enforced or acted upon as fully and effectually as if in the place of
  
  the existing bank the corresponding new bank had been a party thereto or as if
  
  they had been issued in favor of the corresponding new bank.
  (5) If, on the appointed day, any suit, appeal or other
  
  proceeding of whatever nature in relation to any business of the undertaking
  
  which has been transferred under section 4, is pending by or against the
  
  existing bank, the same shall not abate, be discontinued or be, in any way,
  
  prejudicially affected by reason of the transfer of the undertaking of the
  
  existing bank or of anything contained in this Act but the suit, appeal or
  
  other proceeding may be continued, prosecuted and enforced by or against the
  
  corresponding new bank.
  (6) Nothing in this Act shall be construed as applying to the assets,
  
  rights, powers, authorities and privileges and property, movable and immovable,
  
  cash balances and investments in any country outside India (and other rights
  
  and interests in, or arising out of, such property) and borrowings, liabilities
  
  and obligations of whatever kind subsisting at the commencement of this Act, of
  
  any existing bank operating in the country if, under the laws in force in that
  
  country, it is not permissible for a banking company, owned or controlled by
  
  Government, to carry on the business of banking there.