64. Provisions as to Bi har State Financial Corporation .
(1)The Bihar State Financial
Corporation established under the State Financial Corporation Act, 1951 (63 of 1951) shall, on and from
the appointed day, continue to function in those areas in respect of which it was functioning immediately
before that day, subject to the provisions of this section and to such directions as may, from time to time,
be issued by the Central Government.
(2)Any directions issued by the Central Government under sub -section ( 1) in respect of the
Corporation may include a direction that the said Act, in its application to the Corporation, shall have
effect subject to such exceptions and modifications as ma y be speci fied in the direction.
(3)Notwithstanding anything contained in sub -section ( 1) or sub -section ( 2), the Board of Directors
of the Corporation may, with the previous approval of the Central Government and shall, if so required by
the Central Gove rnment, co nvene at any time afte r the appointed day a meeting for the consideration of a
scheme for the reconstitution or reorganisation or dissolution, as the case may be, of the Corporation,
including proposals regarding the formation of new Corporation , and the t ransfer thereto of th e assets,
rights and liabilities of the existing Corporation, and if such a scheme is approved at the general meeting
by a resolution passed by a majority of the shareholders present and voting, the scheme shall be submitted
to the Cen tral Government for its sanct ion.
(4)If the scheme is sanctioned by the Central Government either without modifications or with
modifications which are approved at a general meeting, the Central Government shall certify the scheme,
and upon such certifica tion, the scheme shall, notwi thstanding anything to the contrary contained in any
law for the time being in force, be binding on the corporations affected by the scheme as well as the
shareholders and creditors thereof.
(5)If the scheme is not so approved or sanctioned, the Central Government may refer the scheme to
such Judge of the High Court at Patna and Jharkhand as may be nominated in this behalf by the Chief
Justice thereof, and the decision of the Judge in regar d to the scheme shall be final and shall be binding on
the corporations affected by the scheme as well as the shar eholders and creditors thereof.
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(6)Nothing in the preceding provisions of this section shall be construed as preventing the
Government of the States of Bihar and Jharkhand from constituting, at any time on or after the appointed
day, a State Financial Corporation for that State under the State Financial Corporations
Act, 1951 (63 of 1951).