Supreme court judgement on banks nationalisation case

The Banking Regulation Act 10 of 1949 was amended by Act 58 of 1968, to give effect to the policy of "social control over commercial banks. Act 58 of 1968 provided for reconstitution of the Boards of directors of commercial banks with a Chairman who had practical experience of the working of a Bank or financial, economic and business adminis tration.
During the last two decades the Reserve Bank reorganised the banking structure. A number of units which accounted for a small section of the banking business were amalga mated under directions of the Reserve Bank. The total number of commercial banking institutions was reduced from 566 in 1951 to 89 in 1969-73 scheduled and 16 non-scheduled.
(Para 4)
Late in the afternoon of July 19, 1969 (which was a Saturday) the Vice-President (acting as President) promulgated, in exercise of the power conferred by clause (1) of Article 123 of the Constitution, Ordinance 8 of 1969, transferring to and vesting the under taking of 14 named commercial banks in corresponding new banks set up under the Ordinance. The preamble of the Ordinance read as follows:
"An Ordinance to provide for the acquisition and transfer of the undertakings of certain banking companies in order to serve better the needs of development of the economy in conformity with national policy and objectives and for matters connected therewith or incidental thereto." Petitions challenging the competence of the President to promulgate the Ordinance

(Para 5) were lodged in this Court on July 21, 1969. But before the petitions could be heard by this O Court, a Bill to enact provisions relating to acquisition and transfer of undertakings of the existing banks was introduced in the Parliament, and was enacted on August 9, 1969, as "The Banking Companies (Acquisition and Transfer of Undertakings) Act 22 of 1969". The preamble of the Act was in terms identical with the preamble of the Ordinance.