(1) The Estate shall be deemed to include all assets, rights, leaseholds, powers, authorities and privileges and all property, movable and immovable, including buildings, jewellery, painting, art works 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 the owners or transferees and all books of accounts, registers and other documents of whatever nature relating thereto.
(2) All properties aforesaid, which have vested in the State Government under section 3 shall, by virtue of such vesting be freed and discharged from any trust, obligation, mortgage, lease, charge, lien and all other encumbrances affecting them and any attachment, injunction or decree or order of any court or any authority restricting the use of such property, in any manner shall be deemed to have been withdrawn.
(3) Every mortgage of any property which has vested under this Act, in the State Government and every person holding any charge, lease, 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, lease, 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 charges, lease, lien or other interest in or in relation to any such property shall be entitled to claim in accordance with his rights and interest payment of the mortgage money or other dues in whole or in part out of the amount specified in section 7 and also out of the amount determined under section 8 but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the State Government.
(5) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any property which has vested in the State Government under section 3 instituted or preferred by or against the owners or transferees is pending the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the transfer of the Estate or anything contained in this Act but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the State Government or where the Estate is directed under section 6 to vest in the Board by or against the Board.
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