Chapter II ACQUISITION OF RIGHTS OF THE OWNER OF THE TEXTILE UNDERTAKING

(1) On the appointed day, the textile undertaking and the right, title and interest of the owner in relation to the said textile undertaking shall stand transferred to and shall vest absolutely in the State Government. (2) The textile undertaking which stands vested in the State Government by virtue of sub-section (I) shall immediately after it has so vested, stand transferred to and vested in the Corporation.

(1) The textile undertaking referred to in section 3 shall be deemed to include 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 balance, cash in hand, reserve funds, investments and all other rights and interest 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 textile undertaking, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto. (2) All properties as aforesaid which have vested in the State Government under sub-section (1) of section 3 shall, by force of such vesting, be freed, dischar ged from any trust, obligation, mortgage, hypothecation, charge, lien and all other encumbrances affecting it; and any attachment/injunction or decree or order, of any court restricting the use of such property in any manner shall be deemed to have been withdrawn. (3) Where any licence or other instrument in relation to the textile undertaking had been granted at any time before the appointed day to the owner by the Central Government or a State Government or any other authority, the Corporation shall, on and from such date, be deemed to be substituted in such licence or other; instrument in place of the owner referred to therein as if such licence or other instrument had been granted to the Corporation and shall hold such licence or such other instru ment for the remainder of the period for which the owner would, have held such licence or such other instrument: (4) Every holder of mortgage or hypothecation of any property which has vested under this Act in the State Government and every person holding any charge, lieu 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 payments of such mortgage, hypothecation, charge, lien or other interest. (5) For removal of doubt it is hereby declared that the holder of mort gage or hypothecation -property referred to in sub-section (2) or, any other person holding any charge. Hen 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 mortgaged or hypothecated money or other dues, in whole or in part, out of the amount determined in relation to such property under section 7, but no such mortagage hypothecation, charge, lien, or other interest shall be enforceable against any property which has vested in the State Government.

(i) Every liability of the owner of the textile undertaking in respect of any period prior to the appointed day shall be the liability of such owner and shall be enforceable against it and not against the State Government or the Corporation. (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 in relation to the textile undertaking in respect of any period prior to the appointed day, shall be enforceable against the State Government of the Corporation; (b) no liability of the owner incurred before the appointed day, for the contravention of any provision of law for the time being in force, shall be enforceable against the' State Government or the Corporation.

An amount equal to the value of the assets of the textile undertaking transferred to and vested in the Corporation under sub-section (2) of section 3 shall be deemed to be the contribution made by the State Government to the Corporation to Corporation.