Vesting of closed textile undertakings in the State Government

Vesting of closed textile undertakings in the State Government.—

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) The 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 with 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any receiver in respect of the whole or any part of such closed textile undertaking shall be deemed to have been withdrawn.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) Every mortgagee of any property which has vested under this Act in the State 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.
5. (4) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section
6. (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 amount of compensation determined under section 7, but shall not have any right to, or in relation to, the property which has vested in the State Government.
7. (5) Any licence or easement in relation to any closed textile undertaking which has vested in the State Government under sub-section
8. (1) shall, on and from the appointed day, continue and shall have the same force and effect in favour of the State Government as it had in favour of the owner of such closed textile undertaking immediately before the appointed day.
9. (6) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any property or assets which has vested in the State Government under sub-section (1), instituted or preferred by or against the owner of a closed textile undertaking, 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 State Corporation.
10. (7) Any person who, on the appointed day, has in his possession or under his control any books, documents or other papers relating to any closed textile undertaking, which has vested in the State Government under this Act and which belongs to the owner of the said closed textile undertaking, shall be liable to account for the said books, documents or other papers to the State Government or the State Corporation and shall deliver them up to the State Government or the State Corporation or to such person as the State Government or the State Corporation may authorize in this behalf.
11. (8) The State Government may take, or cause to be taken, all necessary steps for securing the possession of all closed textile undertakings which have vested in the State Government under this Act.
12. (9) Every owner of a closed textile undertaking shall, within such time and in such manner as may be prescribed, furnish to the State Government or the State Corporation a complete inventory of all the properties and assets (including particulars of book debts, investments and belongings) forming part of the closed textile undertaking immediately before the appointed day.