Acquisition of rights of owners in respect of sick textile undertakings

Acquisition of rights of owners in respect of sick textile undertakings

1. (1) On the appointed day, every sick textile undertaking and the right, title and interest of the owner in relation to every such sick textile undertaking shall, by virtue of this Act, stand transferred to, and shall vest absolutely in the State Government.
2. (2) Every sick textile undertaking which vests in the State Government under sub-section
3. (1) shall be deemed to have become vested with all 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 sick textile undertaking, whether within or outside the sick textile undertaking, and all books of account, registers and all other documents of whatever nature relating thereto.
4. (3) All property as aforesaid which have vested in the State Government under sub-section
5. (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order of any court or other authority restricting the use of such property in any manner shall be deemed to have been withdrawn.
6. (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 the claims in respect of such mortgage, charge, lien or other interest.
7. (5) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section
8. (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 6, but shall not be entitled to enforce any claim against any property so vested.
9. (6) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any property or liability which has vested in the State Government under section 3, instituted or preferred by or against the sick 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 sick 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 the State Textile Corporation, as the case may be.