Assumption of Liability.

Every liability including any liability arising in respect of

1. (a) loans advanced by the Central Government, or a State Government, or both, to the undertaking (together with interest due thereof) prior to the appointed day; and (b) wages, salaries and other dues of the employees of the undertaking , in respect of any period before the appointed day, shall, on and from the appointed day, be the liability of the Government and shall be discharged by the Government as and when repayment of such loans or amounts become due or as and when such wages, salaries or other dues become due and payable.