Dissolution of Institution and transfer of undertaking of Institution to Society, and consequences of transfer.

(1) As from the appointed date,— (a) the said Institution shall stand dissolved; and the undertaking of the said Institution, which immediately before the appointed date belonged to or was vested therein, shall for purposes of its management and control stand transferred to the Society and shall be used or applied for the purposes for which the Society is constituted; (b) all persons in charge of the management, including persons holding office as trustees, governors, directors, council, committee or governing body to whom the management of the said Institution is entrusted immediately before the appointed date shall be deemed to have vacated their offices as such; (c) any contract of management, if any, between the said Institution and any person in relation to carrying on the affairs of the undertaking of the said Institution immediately before the appointed date shall be deemed to have terminated; (d) the Society shall take all such steps as may be necessary to take into its custody or control all the property, effects and actionable claims forming part of the undertaking to which the said Institution is or appears to be entitled and all such property and effects shall be deemed to be in the custody of the Society as from the appointed date. (2) The undertaking of the said Institution shall be deemed to include all rights, assets, lease-holds including statutory tenancies, if any, powers, authorities and privileges and all property, movable and immovable, including lands, buildings including hostels, works, library, laboratory, instruments, equipment, furniture, stationery, stores, automobiles and other vehicles, if any, and other things required for carrying on the undertaking of the said Institution, cash balances, cash on hand, reserve fund, if any, investments and book debts and all other rights and interests arising out of such property as were immediately before the appointed date in the ownership, possession, power or control of the said Institution and all books of account, registers, maps, plans and all other documents of whatever nature relating thereto, and shall also be deemed to include all borrowings, liabilities and obligations, of whatever kind, then subsisting of the said Institution. (3) All debts and liabilities of the said Institution which stand transferred and attached to the Society under this section shall, after the appointed date, be discharged and satisfied by the Society. (4) Any will, deed or other document whether made or executed before or after the commencement of this Act, which contains any bequest, gift or trust in favour of the said Institution shall, as from the appointed date, be construed as if the Society were named therein instead of the said Institution. (5) Subject to the other provisions of this Act, all contracts and working arrangements which are subsisting immediately before the appointed date and affecting the undertaking of the said Institution shall, in so far as they relate to the undertaking of the said Institution, cease to have effect or be enforceable against the said Institution or any person who was surety or had guaranteed the performance thereof, and shall be of as full force and effect against or in favour of the Society and enforceable as fully and effectually as if instead of the said Institution, the Society had been named therein, or had been a party thereto. (6) Subject to the other provisions contained in this Act, any proceeding or cause of action pending or existing immediately before the appointed date by or against the said Institution may, as from such appointed date, be continued and enforced by or against the Society as it might have been enforced by or against the said Institution if this Act had not been passed, and shall cease to be enforceable by or against the said Institution, its surety or guarantor.