(1) The undertakings of the Company shall be deemed to include General all assets, rights, leaseholds, powers, authorities and privileges, and all effect of property, movable and immovable, including lands, buildings, workshops, vesting 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 all books of account, registers and 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 vesting, 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 or other authority restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such properties shall be deemed to have been withdrawn.
(3) Every mortgagee of any property which has been 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 sub-section (3) 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 amounts! specified in section 8 and also out of the amounts determined under section 9, 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 the appointed day shall continue to be in force on and after such flay in accordance with its tenor in relation to. and for the purposes of such undertaking, and on and from the date of vesting of such undertaking, under section 5, in an existing Government company, Or under section 6, in a new Government company, the existing 210 THE GAZETTE OF INDIA EXTRAORDINARY [PART I I - or new Government company, as the case may be, shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to such existing or new Government company and such existing or new Government company shall hold it for the remainder of the period for which the Company would have held it under the terms thereof.
(6) If, on the appointed day, any suit, appeal or other proceeding, of 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 5 to vest in an existing Government company or become transferred by virtue of the provisions of section 6 to a new Government company, by or against such Government company.
Power of 5- (1) Notwithstanding anything contained in sections 3 and 4, and Central subject to the provisions of section 6, the Central Government may, if it Govern- is satisfied that an existing Government company is willing to comply, or ment to has- complied, with such terms and conditions as that Government may vesting think fit to impose, direct, by notification, that the undertakings of the of the Company, and the right, title and interest of the Company in relation to under- its undertakings which have vested in the Central Government under takings section 3, shall, instead of continuing to vest in the Central Government, of the vest in that existing, Government company either on the date of publica- Company tion of the notification or on such earlier or later date (not being a date existing earlier than the appointed day) as may be specified in the notification.
Govern (2) Where the right, title and interest of the Company in relation to company. its undertakings vest, under sub-section ( i ) , in an existing Government company, that Government company shall, on and from the date-of suchvesting be deemed to have become, and until the transfer, of the undertakings by virtue of the provisions of section 6, to a new Government company, be deemed to be, the owner in relation to such undertakings and 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, and until the date of such transfer, be deemed to be, the rights and liabilities, respectively, of that existing Government company.
Transfer 6 (l) Notwithstanding anything contained in sections 3 and 4, where of under- the undertakings of the Company, have been directed, under sub-section of the (1) of section 5, to vest in an existing Government company, the Central Company Government may, if it is satisfied that a new Government company is from an willing to comply, or has complied, with such terms and conditions, as existing that Government may think fit to impose, declare, by notification that Govern- the undertakings of the Company be transferred to. that new Governcompany ment company; and on the issue of such declaration, the right, title and to a new interest of the Company In relation to its undertakings, which had been, Govern- directed under sub-section (1) of section 5 to vest, in an existing Government ment company, shall, instead of continuing to vest in that existing company.
SEC 1] THE GAZETTE OF INDIA EXTRAORDINAKY an Government company, vest in that new Government company with effect from the dat;e on which such declaration is made.
(2) Where the right, title and interest of the existing Government company in relation to the undertakings of the Company vest under subsection (/) in a new Government company, that new Government company shall, on and from the date of such vesting, be deemed to have become the own^r in relation to such undertakings and the rights and liabilities of the existing Government company in relation to such undertakings shall, on and from the date of such vesting, be deemed to have become the .rights and liabilities, respectively, of that new Government company.