(1) Notwithstanding anything contained in sections 3 and 4, where the undertaking vests, under sub-section (2) of section 3, in the Corporation, the State Government may, subject to such terms and conditions as it may think fit to impose, direct, by notification in the Official Gazette, that the undertaking and the right title and interest of the proprietors in relation to the undertaking, which had vested in the State Government and which on its transfer vest in the Corporation under section 3, shall instead of continuing to vest in the Corporation, vest in a new Government company with effect from the date specified in the notification.
(2) Where the right, title and interest of the proprietors in relation to their undertaking vest, under sub-section (1), in the new Government company, such Government company shall, on and from the date of such vesting, be deemed to have become the owner in relation to such undertaking, and all the rights and liabilities of the State Government and the Corporation in relation to the undertaking shall, on and from the date of such vesting, be deemed to have become the rights and liabilities of such Government company.
CHAPTER III PAYMENT OF AMOUNTS
7. For the transfer to, and vesting in, the State Government under section 3, of the undertaking and the right, title and interest of the proprietors in relation to the undertaking, there shall be paid by the State Government to the proprietors, in cash, and in the manner specified in Chapter VI, an amount of rupees six crores and ten lakhs :
Provided that, where any liability of the proprietors specified in the Schedule is discharged by the State Government or the Corporation according to the order of the priorities mentioned in the Schedule, the amount to be paid to the proprietors under this section shall stand reduced to that extent.