(1) The undertakings of each of the two companies shall be deemed General to include all assets, rights, lease-holds, powers, authorities and privi- vesting leges, and all property, movable and immovable, including lands, buildings, workshops, stores, instruments, machinery and equipment, cash balances, cash on hand, cheques, demand drafts, reserve funds, investments, book debts and all other rights and interests in, or arising out of, such property as were immediately before the appointed day in the ownership, possession, power or control of either of the two companies, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto, and shall also be deemed to include the liabilities specified in sub-section (2) of section 5,
(2) All properties as aforesaid which have vested in the Central Government under section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting them, and any attachment, injunction, decree or order of any court restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such properties shall be deemed to have been withdrawn.
(3) Every mortgagee of any property which has vested under this Ordinance in the Central Government and every person holding any charge, lien or other interest in, or in relation to, any such property shall give, within such time and in such manner as may be prescribed, an intimation to the Commissioner of such mortgage, charge, lien or other interest.
(4) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (3) or any other person holding any charge, lien or other interest in, or in relation to, any such property shall be entitled to claim, in accordance with his rights and interests, payment of the mortgage money or other dues, in whole or in part, out of the amount specified, in relation to the company owning such property, in the First Schedule, and also out of the amounts determined under section 8, but no such mortgage, charge, lien or other interest shall be enforceable against any property which hag vested in the Central Government.
(5) Any licence or other instrument granted to either of the two companies in relation to any undertaking which has vested in the Central Government under section 3 at any time before the appointed day and in force immediately before that day shall continue to be in force on and after such day in accordance with its tenor in relation to and for the purposes of such undertaking, and, on and from the date of vesting of such undertaking under section 6 in a Government company, the concerned Government company shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to such Government company and such Government company shall hold it for the remainder of the period for which the concerned company would have held it under the terms thereof.
504 THE GAZETTE OF INDIA EXTRAORDINARY [PART ll—
(6) If, on the appointed day, any suit, appeal or other proceeding of whatever nature, in relation to any matter specified in sun-section (2) of section 5, in respect of any undertaking of either of the two companies, instituted or preferred by or against either of the two companies, is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason oi the transfer of the undertakings of either of the two companies, or of anything contained in this Ordinance, but the suit, appeal or other proceeding may be continued, prosecuted or enforced by or against the Central Government, or, where the undertakings of the two companies are directed, under section 6, to veal in Government companies, by or against the concerned Government company.
Owners of 5- (^) Every liability, other than the liability specified in sub-section the two (2), of each of the two companies in respect of any period prior to the companies appointed day, shall be the liability of the concerned company and shall 1° bf f ^ e en^orcea 'Dte against it and not against the Central Government, or, certain r wnere the undertakings of the two companies are directed, under section prior iia- 6» t o vest in Government companies, against the concerned Government bilities. company.
(2) Any liability arising in respect of materials supplied to either of the two companies after th.e management of the undertaKings of the concerned company had been taken over by the Central Government shall, on and from the appointed day, be the liability of the Central Government or of the concerned Government company aforesaid and shall be discharged by that Government or Government company, as and when repayment for such supplies becomes due and payable.
(3) For the removal of doubts, it is hereby declared that—
(a) save as otherwise expressly provided in this section or In any other provision of this Ordinance, no liability, other than the liability specified in sub-section (2), of either of the two companies in relation to its undertakings in respect of any period prior to the appointed day, shall be enforceable against the Central Government, or, where the undertakings of the two companies are directed, under section 6, to vest in Government companies, against the concerned Government company;
(b) no award, decree or order of any court, tribunal or other authority in relation to the undertakings of either of the two companies, passed on or after the appointed day, in respect of any matter, claim or dispute, not being a matter, claim or dispute in relation to any matter referred to in sub-section (2), which arose before that day, shall be enforceable against the Central Government, or, where the undertakings of the two companies are directed, under section 6, to vest in Government companies, against the concerned Government company;
(c) no liability incurred by either of the two companies before the appointed day, for the contravention of any provision of law for the time being in force, shall be enforceable against the Central Government, or, where the undertakings of the two companies are directed, under section 6", to vest in Government companies, against the concerned Government company.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3.15
6. (I) Notwithstanding anything contained in sections 3 and 4, the Power of Central Government may, subject to such terms and conditions as it may Central think fit to impose, direct, by notification, that each of the undertakings m e n t t0~ of the two companies and the right, title and interest of each of the two direct companies in relation to their respective undertakings which have vested vesting of in that Government under section 3, and such of the liabilities of each of the under - tne two companies as are specified in sub-section (2) of section 5, shall, <? 1fgs ° III 6 TWO instead of continuing to vest in the Central Government, vest in two companies Government companies either on the date of the notification or on such in two earlier or later date (not being a date earlier than the appointed day) as Governmay be specified in the notification. m e m c o m ' parries.
(2) Where the right, title and interest, and the liabilities referred to in sub-section (2) of section 5, of each of ihe two companies, in relation to its undertakings, vest in two Government companies under sub-section
(1), the Government companies shall, on and from the date of such vesting, be deemed to have become the owners in relation to such undertakings, and all the rights and liabilities of the Central Government in relation to such undertakings shall, on and from the date of such vesting, be deemed to have become the rights andi liabilities, respectively, of the Government companies.
CHAPTER III PAYMENT OF AMOUNTS
7. For the transfer to, and vesting in, the Central Government, under Payment section 3, of the undertakings of each of the two companies and the right, of title and interest of each of the two companies in relation ito such undertakings, there shall be given by the Central Government to each of the companies, in cash and in the manner specified in Chapter VI, an amount equal to the amount specified against the name of each such company in the First Schedule.