Chapter III VESTING AND TRANSFER OF UNDERTAKINGS

Undertakings to vest in Government.—(1) Notwithstanding anything contained in any other law for the time being in force or in any contract or other document, with effect on and from the appointed day, the undertakings, namely, the Kerala State Maritime Development Corporation registered under the Companies Act, 1956 (Central Act 1 of 1956) and the Kerala State Maritime Society registered under the Travancore Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 (Act 12 of 1955) shall by virtue of this Act, stand transferred to and vest in the Government.

1. (2) The undertakings vested in the Government shall include the properties, rights, liabilities and obligations specified below, namely:—
   • (i) all the assets in relation to the undertakings and all the documents relating to the undertakings;
   • (ii) all the rights, liabilities and obligations in relation to the undertakings under any agreement entered into before the appointed day.
2. (3) If, on the appointed day, any suit, appeal or other proceeding of whatever nature instituted or preferred by or against the undertakings, is pending, the same shall not abate, shall not be discontinued or be, in any way, prejudicially affect by reason of such transfer or of anything contained in this Act, but the suit, appeal or other proceedings may be continued, prosecuted or enforced by or against the State Government or the Board.

Transfer of undertakings to the Board.—The Government may, by order, transfer the undertakings vested in them under section 10 to the Board on such terms and conditions as may be specified in the order and on such transfer, the undertaking together with all assets, liabilities, rights and obligations vested in or devolved on the Government under sub-section (1) of section 10, shall vest in or devolve on the Board.

Transfer of existing employees, Provident Fund etc.—

1. (1) Every officer or other employee who was immediately before the appointed day employed in connection with the undertakings, shall, on the appointed day become an officer or an employee, of the Government and on transfer of undertakings under section 11, they shall become an officer or employee of the Board and shall hold his office by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, gratuity and other matters as would have been admissible to him if the undertakings had not been transferred to and vested in the Government or the Board, as the case may be, and shall continue to do so unless and until his employment under the Government or the Board, as the case may be, is duly terminated or until his remuneration or terms and conditions of service are duly altered by the Government or the Board, as the case may be.
2. (2) The transfer of the services of any officer or other person employed in the undertakings shall not entitle such officer or other employee to any compensation under this Act and no such claim shall be entertained by any court, tribunal or other authority.
3. (3) Where the undertakings have established a provident fund, superannuation fund or any other fund for the benefits of the persons employed in such undertakings, the amounts in respect of the officer or other employees whose services have become transferred, by or under this Act to the Government or to the Board, shall, out of the amounts standing as on the appointed day to the credit of such provident fund, superannuation fund or other fund, stand transferred to and vest in the Government or the Board, as the case may be.
4. (4) The amounts which stand transferred under sub-section (1) to the Government or the Board, as the case may be, shall be dealt with by the Government or the Board, as the case may be in such manner as may be prescribed.