(1) The Undertakings of the companies vesting in the Government under section 4 shall be deemed to consist only of property, rights, liabilities and obligations specified hereunder,-
(i) all the fixed assets of the companies and all documents relating to the undertakings;
(ii) all the rights, liabilities and obligations of the companies under hire purchase agreements, if any, for the supply of materials or equipment made bona fide before the vesting date;
(iii) all the rights, liabilities and obligations of the companies under any other contract entered into bona fide before the vesting date not being a contract relating to the borrowing or lending of money.
(2) All the assets specified in item (i) of sub-section (1) shall vest in the Government free from any debts, mortgages or similar obligations of the companies for attaching to the undertakings:
Provided that such debts, mortgages or obligations shall attach to the amount to be given under this Act for the assets.
(3) In the case of undertakings which vest in the Government under this Act, the licence granted or deemed to be granted for supplying electricity shall be deemed to have been terminated on the vesting date and all the rights, liabilities and obligations of the companies under any agreement to supply electricity entered into before that date shall devolve on the Government:
Provided that where any such agreement is not in conformity with the rates and conditions of supply approved by the Government and in force on the vesting date, the agreement shall be voidable at the option of the Government.
(4) The Government may, by notification, provide for the transfer to, and vesting in, the Board, in such manner and subject to such conditions as may be specified in the notification, of property, rights, liabilities and obligations which have vested in the Government under this Act and thereupon, such property, rights, liabilities and obligations shall stand transferred to, and vest in the Board.