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THE BANKING COMPANIES (LEGAL PRACTITIONERS' CLIENTS' ACCOUNT) ACT, 1949
(ACT NO.46 OF
1949)
[AS ON 1995]
{Extended to Dadra and Nagar Haveli by
Reg. 6 of 1963, s. 2 and Sch. I; Pondicherry by Reg. 7 of 1963, s. 3
and Sch. I; Goa, Daman and Diu by Reg. 11 of 1963 s. 3 and Sch; and
Lakshadweep by Reg. 8 of 1965, s. 3 and Sch.}
[8th December,
1949.]
An Act to restrict the liability of banking companies
in connection with certain transaction by legal
practitioners;
WHEREAS it is expedient to restrict the
liability of banking companies in connection with certain
transactions by legal practitioners;
Comment: The aim of the Act is to
restrict the liability of banking companies in connection with
certain transactions by legal practitioners .
It is hereby enacted as
follows :-
1.Short
title, extent and commencement.-(1) This Act may be called the
banking companies (Legal Practitioners' Clients' Accounts) Act,
1949.
{Subs. by the A.O. 1950, for the former sub-section.}
[(2) It extends to the whole of India {The words "except the State
of Jammu Kashmir" omitted by Act 62 of 1956, s. 2 and Sch.} * *
*.]
(3) It shall come into force in the Presidency-town of
Bombay at once, and in the rest of the {Subs. by the Bombay
Reorganisation (Adaptation of Laws on Union Subjects) Order, 1961,
for "State of Bombay" (w.e.f. 1-5-1960).} [State of Maharashtra] or
any part thereof or {Subs. by the A.O. 1950, for "in any other
Province or any Acceding State or any Part of such Province or
State".} [ in any other State or in any part of such State] on such
date or dates {The Act was brought into force in Orissa on 1st
August, 1950, vide Notifn. No. S.R.O. 270, dated the 12th July,
1950, Gazette of Indian, Pt. II, Sec. 3, p. 278 and in the State of
Punjab on the 1st October, 1951, vide Notifn. No. S.R.O. 1431, dated
18th September, 1951, Gazette of India, Pt. II, Sec. 3, p. 1597.} as
the Central Government may, by notification in the Official Gazette,
appoint.
2.Definitions.-In this Act,
unless there is anything repugnant in the subject or
context,-
{Subs. by Act 38 of 1959, s. 64 and Sch. III, for
cl. (a) (w.e.f. 10-9-1959).} [(a) "banking company" means any
banking company as defined in section 5 of the Banking Companies
Act, 1949 (1 of 1949), and includes the State Bank of India {Subs.
by Act 5 of 1970, s. 20, for "and any subsidiary bank" (w.e.f.
19-7-1969).} [a corresponding new bank constituted under section 3
of the Banking Companies (Acquisition and Transfer of Undertaking
Act, 1970 ( 5 of 1970), {Subs. by Act 21 of 1976, s. 33, for certain
words (w.e.f. 26-9-1975).} [ a Regional Rural Bank established under
section 3 of the Regional Rural Banks Act, 1976 (21 of 1976), {Subs.
by Act 40 of 1980, s. 20 (a) (w.e.f. 15-4-1980).} [ a corresponding
new bank constituted under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980)
and any subsidiary bank]]] as defined in the State Bank of India
(Subsidiary Banks ) Act, (38 of 1959);]
(b) " legal
practitioner " has the same meaning as in the legal Practitioners
Act, 1879 (18 of 1879).
3.Restriction of liability of
banking companies in certain cases.-(1) Where, under any law or
rules having the force of law, a legal practitioner keeping an
account in banking company for clients,' moneys may only
operateonsuch account for specified purposes, then, neither the
banking company with which such an account is kept nor any other
banking company shall, in connection with any transaction relating
to such account, incur any liability, or be under nay obligation to
make any enquiry, or be deemed to have nay