law: Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970  
  19.Power to make regulations.- 
  (1) The Board of Directors of a corresponding new bank may,
  
  after consultation with the Reserve Bank and with the previous sanction of the
  
  Central Government, make regulations, not inconsistent with the previsions of
  
  this Act or any scheme 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, the regulations may provide for all or any of the
  
  following matters, namely :-
  (a) the powers, functions and duties of local
  
  boards and restrictions, conditions or limitations, if any, subject to which
  
  they may be exercised or performed, the formation and constitution of local
  
  committees and committees of local board (including the number of members of
  
  any such committee), the powers, functions and duties of such committees, the
  
  holding of meetings of local committees and committees of local boards and the
  
  conduct the business thereat;
  (b) the manner in which the business of the
  
  local boards shall be transacted and the procedure in connection therewith;
  (c) the delegation of powers and functions of
  
  the board of directors of a corresponding new bank to the general manager,
  
  director, officer or other employee of that bank;
  (d) the conditions or limitation subject to
  
  which the corresponding new bank may appoint advisers, officers or other
  
  employees and fix their remuneration and other terms and conditions of service;
  (e) the duties and conduct of advisers,
  
  officers or other employees of the corresponding new bank;
  (f) the establishment and maintenance of
  
  superannuation, pension, provident or other funds for the benefit of officers
  
  or other employees of the corresponding new bank or of the dependants of such
  
  officers or other employees and the granting of superannuation allowances,
  
  annuities and pensions payable out of such funds;
  (g) the conduct and defense of legal
  
  proceedings by or against the corresponding new bank and the manner of signing
  
  pleadings;
  (h) the provision of a seal for the
  
  corresponding new bank and the manner and effect of its use;
  (i) the form and manner in which contracts
  
  binding on the corresponding new bank may be executed;
  (j) the conditions and the requirements
  
  subject to which loans or advances may be made or bills may be discounted or
  
  purchased by the corresponding new bank;
  (k) the persons or authorities who shall
  
  administer any pension, provident or other fund constituted for the benefit of
  
  officers or other employees of the corresponding new bank or their dependants;
  (l) the preparation and submission of
  
  statements of programmes of activities and financial statements of the
  
  corresponding new bank and the period for which and the time within which such
  
  statements and estimates are to be prepared and submitted; and
  (m) generally for the efficient conduct of the
  
  affairs of the corresponding new bank.
  (3) Until any regulation is made under sub-section (1), the
  
  articles of association of the existing bank and every regulation, rule,
  
  bye-law or order made by the existing bank shall, if in force at the
  
  commencement of this Act, be deemed to be the regulations made under
  
  sub-section (1) and shall have effect accordingly and any reference therein to
  
  any authority of the existing bank shall be deemed to be a reference to the
  
  corresponding authority of the corresponding new bank and until any such
  
  corresponding authority is constituted under this Act, shall be deemed to refer
  
  to the Custodian. 
  Comment  : But mere reference to the rule, even if
  
  it mentions grounds for compulsory retirement, cannot be regarded as sufficient
  
  for treating the order of compulsory retirement as an order of punishment. In
  
  such a case, the order can be said to have been passed in terms of the rule
  
  and, therefore, a different intention cannot be inferred. So also, if the
  
  statement in the order refers only to the assessment of his work and does not
  
  at the same time cast an aspersion on the conduct or character of the
  
  Government servant, then it will not be proper to hold that the order of
  
  compulsory retirement is in reality an order of punishment. Whether the
  
  statement in the order is stigmatic or not will have to be judged by adopting
  
  the test of how a reasonable person would  read or understand it.
  
  Allahabad Bank Officers Association v. Allahabad Bank. AIR 1996 SUPREME COURT 2030