Chapter II ACQUISITION OF THE RIGHTS OF OWNERS OF SPECIFIED TEXTILE UNDERTAKINGS

3.

1. (1) On the appointed day, every specified textile undertaking and the right, title and interest of the owner in relation to such textile undertaking shall stand transferred to, and shall vest absolutely in, the State Government.
2. (2) The specified textile undertaking which stands vested in the State Government by virtue of sub-section
3. (1) shall, immediately after it has so vested, stand transferred to, and vest in, the Corporation.

4.

1. (1) The specified textile undertaking referred to in section 3 shall be deemed to include all assets, rights, lease-holds, powers, authorities and privileges and all property, movable and immovable, including lands, buildings, workshops, stores, instruments, machinery and equipment, cash balances, cash on hand, reserve funds, investments and 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 owner of the specified textile undertaking, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto.
2. (2) All property as aforesaid which has vested in the State Government under sub-section
3. (1) of section 3 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or decree or order of any court restricting the use of such property in any manner shall be deemed to have been withdrawn.
4. (3) Where any licence or other instrument in relation to the specified textile undertaking had been granted at any time before the appointed day to an owner by [the] Central Government or the State Government or any other authority, the Corporation shall, on and from such date, be deemed to be substituted in such licence or other instrument in place of the owner referred to therein as if such licence or other instrument had been granted to the Corporation and it shall hold such licence or such other instrument for the remainder of the period for which the owner would have held such licence or such other instrument.
5. (4) 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.
6. (5) For the removal of doubt, it is hereby declared that the mortgagee of any property referred to in sub-section
7. (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 relation to such property in section 7, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the State Government.

5.

1. (1) Every liability of the owner of the specified textile undertaking in respect of any period prior to the appointed day, shall be the liability of such owner and shall be enforceable against him and not against the State Government or the Corporation.
2. (2) For the removal of doubt, it is hereby declared that,--
   • (a) save as otherwise expressly provided in this section or in any other section of this Act, no liability, in relation to the specified textile undertaking in respect of any period prior of the appointed day, shall be enforceable against the State Government or the Corporation ;
   • (b) no liability of the specified textile undertaking or any owner thereof for the contravention, before the appointed day, of any provision of law for the time being in force, shall be enforceable against the State Government or the Corporation.

6. An amount equal to the value of the assets of the specified textile undertaking transferred to and vested in, the Corporation under sub-section

1. (2) of section 3, shall be deemed to be the contribution made by the State Government to the Corporation.