Chapter II ACQUISITION AND TRANSFER OF THE UNDERTAKINGS OF THE

COMPANY

Company.—On the appointed day, the undertakings of the Company, the right, title and interest of the Company in relation to its undertakings and, save as otherwise expressly provided in this Act, the liabilities of the Company in relation to its undertakings, shall, by virtue of this Act, stand transferred to, and shall vest, in the Government.

1. (1) The undertakings of the Company shall be deemed to include—
   • (a) 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, cheques, demand drafts, reserve funds, investments, 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 Company.
   • (b) all properties, rights and interests of the Hindustan China Clay Works purported to have been transferred to the Company by the Memorandum of

Agreement made on the 2nd day of January, 1973, between the Hindustan

China Clay Works and the Company; and

1. (c) all books of account, registers and all other documents of whatever nature relating to the undertakings mentioned in clauses (a) and (b).

1. (2) Every mortgagee of any property which has vested under this Act in the 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.
2. (3) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (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, from the Government or, where the undertakings of the Company are directed under section 6 to vest in a Government Company, from that Government Company.
3. (4) Any licence or other instrument granted to the Company in relation to any undertaking which has vested in the Government under section 3 at any time before the appointed day and in force immediately before that day shall continue to be in force on and after such day in accordance with its tenor in relation to and for the purposes of such undertaking, and, on and from the date of vesting of such undertaking under section 6 in a Government Company, such Government Company shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to such Government Company and that Government Company shall hold it for the remainder of the period for which the Company would have held it under the terms thereof.
4. (5) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any property which has vested in the Government under section 3, instituted or preferred by or against the Company, is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of transfer of the undertakings of the Company or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted, or enforced by or against the Government, or where the undertakings of the Company are directed, under section 6, to vest in a Government Company, by or against that Government Company.

No liability incurred by the Company before the appointed day, for the contravention of any provision of law for the time being in force, shall be enforceable against the Government, or, where the undertakings of the Company are directed under section 6, to vest in a Government Company, against that Government

Power of Government to direct vesting of the undertakings of the Company in a Government Company.—(1) Notwithstanding anything contained in sections 3 and 4, the Government may, subject to such terms and conditions as they may think fit to impose, direct, by notification in the Gazette, that all the undertakings of the Company and the right, title, interest and liabilities of the Company in relation to its undertakings which have vested in the Government under section 3, except any undertaking or undertakings specified in the notification and the right, title, interest and liabilities in relation to the undertaking or undertakings so specified, shall, instead of continuing to vest in the Government, vest in a Government Company either on the date of the 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, interest and liabilities of the Company in relation to all or any of its undertakings vest in a Government Company under sub-section (1), the Government Company shall, on and from the date of such vesting, be deemed to have become the owner in relation to the undertaking so vested, and all the rights and liabilities of the Government in relation to such undertaking, shall, on and from the date of such vesting, be deemed to have become the rights and liabilities of the Government Company.