(1) The undertaking of the institution shall be deemed to include all rights, powers, authorities and privileges of the institution and properties movable or immovable, cash balances, reserve funds and other assets of the institution including lands, buildings, works, machinery, furniture, stores, equipments, plants, laboratories, libraries, dispensaries, apparatus, tools, instruments, implements and all other properties which may be in the ownership, possession, custody or control of the institution in relation to its undertaking immediately before the appointed day and all books of account, registers and all other documents of whatever nature relating thereto.
(2) All properties included as aforesaid in the undertaking of the institution which has vested in the State Government under section 3 shall, by virtue of such vesting, be freed and discharged from any trusts, obligations, mortgages, charges and other encumbrances affecting them, and any attachment, injunction or any decree or order of any court restricting the use of any such property in any manner sjall be deemed to have been withdrawn.
(3) Any contract, whether express or implied, or other arrangement, whether under any statute or otherwise, in so far as it relates to the affairs of the institution in relation to its undertaking and in force immediately before the appointed day shall be deemed to have terminated on the appointed day.
(4) Subject to the provisions of sub-section (3),—
(a) if on the appointed day any suit, appeal or other proceeding, of whatever nature, in ralation to the undertaking of the institution is pending by or against the institution, the same shall be continued, proceeded with and enforced by or against the institution;
(b) it is hereby declared that the liabilities of the institution in relation to its undertaking which has vested in the State Government under section 3 shall be met by the State Government in such manner as may be prescribed.
(5) Every person in whose possession or custody or under whose control the undertaking of the institution or any part of it may be immediately before the appointed day shall, on the appointed day, deliver possession of the said undertaking or part therof to the State Government or to such person or authority as may be specified by the State Government in this behalf.
(6) The State Government may take, or cause to be taken, all necessary steps for securing the possession of the undertaking of the institution which has vested in it under section 3.
196 The S. B. Dey Sanatorium Acquisition Act, 1979.
XVI of 1979.]
(Sections 5-8.)
5. The undertaking of the institution which has vested in the State Government under section 3 shall be managed on bahalf of the State Government by such person or authority as may be appointed by the State Govenment in this behalf in accordance with such rules as may be prescribed.
Management of the institution.
6. The State Government shall deposit, in cash, in the Court of the Payment of District Judge, Darjeeling, to the credit of the Calcutta Medical Aid and amount.
Research Society, an amount equal to the sum of rupees five thousand for the transfer to, and vesting in, the State Government under section 3, of the undertaking of the institution.