(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 vests 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 a 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.