Chapter II TRANSFER AND VESTING OF THE BANGALORE PALACE

On the appointed day, the Bangalore Palace (hereinafter referred to as the “Palace”) and the right, title and interest of the legal representatives or heirs or other persons in relation to the Palace, shall, by virtue of this Act stand transferred to, and shall vest absolutely in the State

General effect of vesting.- (1) The Palace shall be deemed to include all assets, rights, leaseholds, powers, authorities and privileges and all property, moveable and immovable, including, buildings, regalia, painting, art works, sculptures 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 legal representatives or heirs or other interested persons and all books of accounts, registers and other documents of whatever nature relating thereto.

1. (2) All properties aforesaid, which have vested in the State Government under section 4 shall, by virtue of such vesting be freed and discharged from any trust, obligation, mortgage, lease, charge, lien and all other encumbrances affecting them and attachment, injunction or decree or order of any court or authority restricting the use of such property in any manner shall be deemed to have been withdrawn.
2. (3) Every legal representative, heir or other person who has, on the appointed day, any right, title or interest in relation to the Palace shall have the right to prefer his claim in the prescribed manner before the Commissioner for payment of amount out of the amount specified in section 8 and also out of the amount determined under section 9.
3. (4) Every mortgagee of any property which has vested under this Act in the State Government and every person holding any charge, lease, 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, lease, lien or other interest.
4. (5) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (4) or other person holding any charge, lease, lien or other interest in or in relation, to any such property shall be entitled to claim in accordance with his rights or interest, payment of the mortgage money or other dues in whole or in part out of the amount specified in section 8 and also out of the amount determined under section 9, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the State Government.
5. (6) If, as on the appointed day, any suit, appeal or other proceeding of whatever nature, in relation to any property which has vested in the State Government under section 4, instituted or preferred by or against the legal representatives or heirs or other

interested persons, is pending, the same shall not abate, be discontinued, or in any way prejudiciously affected by reason of the transfer of the Palace or 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 Palace is directed under section 7 to vest in the Board by or against the Board.

(1) Every liability of the legal representatives or heirs or other persons in relation to the Palace in respect of any period, prior to the appointed day, shall be the liability of such legal representatives or heirs or others, as the case may be, and shall be enforceable against them and not against the State Government or where the Palace is directed under section 7 to vest in the Board, against the Board.

1. (2) For the removal of doubts, it is hereby declared that,-
   • (a) save as otherwise expressly provided in this section or in any other section of

this Act, no liability of legal representatives or heirs or others in relation to the Palace in respect of any period prior to the appointed day shall be enforceable against the State Government, or where the Palace is directed under section 7 to vest in the Board against the Board;

1. (b) no award , decree or other order of any court, tribunal or other authority in

relation to the Palace passed after the appointed day in respect of any matter, claim, or dispute in relation to any matter which arose before that day, shall be enforceable against the State Government or where the Palace is directed under section 7 to vest in the Board, against the Board;

1. (c) no liability incurred by the legal representatives or heirs or other persons before the appointed day, for the contravention of any provision of any law for the time being in force shall be enforceable against the State Government or where the Palace is directed under section 7 to vest in the Board,against the Board.

Notwithstanding anything contained in sections 4 and 5, the State Government shall subject to such terms and conditions as it may think fit to impose direct by notification, that the Palace which has vested in the State Government under section 4 shall instead of continuing to vest in the State Government vest in the Board either on the date of notification or on such earlier or later date (not being a date earlier than the appointed day) as may be specified in the notification.

1. (2) Where the right, title and interest in relation to the Palace vest in the Board under sub-section (1), the Board shall, on and from the date of such vesting be deemed to have become the owner in relation to such Palace and all the rights and liabilities of the

Amount to be given to legal representatives or heirs or other interested persons .- For the transfer to and vesting in the State Government of the Palace under section 4 and the right, title and interest in relation to the Palace, the State Government shall pay an amount of rupees eleven crores by depositing the same with the Commissioner and the said amount shall be paid to the legal representatives or heirs or such other persons entitled thereto in the manner specified in

Payment of further amount.- (1) The amount specified in section 8 shall carry simple interest at the rate of four per cent per annum for the period commencing on the appointed day and ending on the date on which payment of such amount is made by the State Government to the Commissioner.

1. (2) The amount determined in accordance with the provisions of sub-section (1) shall be given by the State Government to the legal representatives or heirs or such other persons entitled thereto, as the case may be, in addition to the amount specified in section 8.
2. (3) For the removal of doubts, it is hereby declared that the liability of the legal representatives or heirs in relation to the Palace which has vested in the State Government under section 4 shall be discharged from the amount referred to in section 8, and also from the amounts determined under sub-section (1), in accordance with the rights and interests of the creditors of the legal representatives or heirs, or other persons, as the case may be.