Transfer to, and vesting in, the State Government of closed textile undertakings

Transfer to, and vesting in, the State Government of closed textile undertakings. —

1. (1) On the appointed day, every closed textile undertaking and the right, title and interest of the owner in relation to every such closed textile undertaking shall, by virtue of this Act, stand transferred to, and shall vest absolutely in, the State Government.
2. (2) Every closed textile undertaking which vests in the State Government under sub-section
3. (1) shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting it, and any attachment, injunction or decree or order of any court or other authority restricting the use of such closed textile undertaking in any manner or appointing any receiver in respect of the whole or any part of such closed textile undertaking shall be deemed to have been withdrawn.
4. (3) Where any licence or other instrument in relation to a closed textile undertaking had been granted at any time before the appointed day to the owner by the Central Government, the State Government or any other authority, the State Government shall, on and from the appointed day, be deemed to be substituted in such licence or other instrument in place of the owner as if such licence or other instrument had been granted to the State Government and the State Government shall hold it for the remainder of the period for which the owner would have held it.
5. (4) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any property or assets of the closed textile undertaking, which has vested in the State Government under sub-section (1), instituted or preferred by or against the owner is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the closed textile undertaking or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the State Government or, where the State Government directs, by or against the Textile Corporation.