(1) The undertakings of the Company shall be deemed to include General all assets, rights, lease-holds, powers, authorities and privileges, and all effect of property, movable and immovable, including lands, buildings, workshops, Ves t i nS- stores, instruments, machinery and equipment, cash balances, cash on hand, 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 the Company, whether within or outside India, and ail books of account, registers and all other documents of whatever nature relating thereto.
(2) All properties as aforesaid which have vested in the Central Government under section 3 shall, by force of such vssting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other incumbrances affecting them, and any attachment, injunction, decree or order of any court restricting the use of such properties in any manner shall be deemed to have been withdrawn.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 subr-section (2) 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 section T, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Central Government.
(5) Any licence or other instrument granted to the Company 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 day of vesting of such undertaking under section 6 in a Government company, that company shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to that Government company and 484 THE GAZE7TTE OF INDIA EXTRAORDINARY [PART It— that Government company shall hold it for the remainder of the period for which that company would have held it under the terms thereof.
(6) If, on the appointed day, any suit, appeal or other proceeding oi whatever nature in relation to any property which has vested in the Central Government, under section 3, instituted or (preferred by or against the Company is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the undertakings of the Company 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 Company are directed under section 6, to vest in a Government company, by or against that Government company.
Central 5. (1) Every liability of the Company in respect of any period prior Govern- to the appointed day, shall be the liability of the Company and shall be men or enforceable against it and not against the Central Government, or, where ment com- ^ i e undertakings of the Company are directed under section 6, to vest in panynot a Government company, against that Government company.
to be liable for prior liabilities. (2) 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 of the Company in respect of any period prior to the appointed day, shall be enforceable against the Central Government, or where the undertakings of the Company are directed under section 6 to vest in a Government company, against that Government company;
(b) no award, decree or order of any court, tribunal or other authority in relation to the undertakings of the Company, passed after the appointed day, in respect of any matter, claim or dispute which arose before that day, shall be enforceable against the Central Government, or, where the undertakings of the Company are directed under section 6 to vest in a Government company, against that Government company;
(c) no liability incurred by the Company before the appointed day, for the contravention of y provision of any law for the time being in force, shall be enforceable against the Central Government, or, where the undertakings of the Company are directed under section 6, to vest in a Government company, against that Government company. I Power of ' 6- (•*) Notwithstanding anything contained in sections 3 and 4, the Central Central Government may, subject to such terms and conditions as it may Govern- think fit to impose, direct, by notification, that the undertakings of the ment to Company, and the right, title and interest of the Company in relation to vesting of ^ undertakings, which have vested in the Central Government under the under- section 3, shall, instead of continuing to vest in the Central Government, takings of vest in the Government company either on the date of the notification or the Com- o n sUch earlier or later date (not being a date earlier than the appointed G^e n a day) as may be specified in the notification.
m e n t (2) Where the right, title and interest of the Company in relation to company. ,^ uncjertakings, vest in a Government company under sub-section (2), SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 485 the Government company shall, on and from the date of such vesting, be deemed to have become the owner 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 and liabilities of the Government company.
CHAPTER III PAYMENT OF AMOUNTS
7. For the transfer to, and vesting in, the Central Government, p a y m e n t under section 3, of the undertakings of the Company and the right, title of and interest of the Company in relation to its undertakings, there shall amount.
be paid by the Central Government to the Company, in cash, and in the manner specified in Chapter VI, an amount of rupees four hundred and thirty-four lakhs.