Chapter II ACQUISITION AND TRANSFER OF THE UNDERTAKING

Transfer to, and vesting in, the Government of the undertaking of the club.—On the appointed day, the undertaking of the club and the right, title and interest of the club in relation to its undertaking shall, by virtue of this Act, stand transferred to, and vest in, the Government.

General effect of vesting.-(1) The undertaking of the club shall be deemed to include the business in the running of horse races at Madras and at Uthagamandalam (including inter-venue betting on horse races) and the business in relation to the other objects of the club and shall include all assets, rights, leaseholds, powers, authorities and privileges and all property, movable and immovable, including automobiles and other vehicles, bank balances, reserve funds, investments and 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 club in relation to the undertaking whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto and shall also be deemed to include, the liabilities specified in sub-section

1. (1) of section 25.
2. (2) All properties as aforesaid which have vested in the Government under section 4, shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting them, and any attachment, injunction, decree or order of any court, tribunal or other authority restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such properties shall be deemed to have been withdrawn.
3. (3) 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.
4. (4) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section
5. (3) 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, out of the amounts specified in section 8, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Government.
6. (5) Any licence, permission, sanction, approval, order or other instrument whatsoever granted to the club in relation to the undertaking which has vested in the Government under section 4, at any time before the appointed day and in force immediately before the appointed 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 4, in the Government, or under section 6, in a Government company, the Government, or the Government company, as the case may be, shall be deemed to be substituted in such licence, permission, sanction, approval, order or other instrument whatsoever as if such licence, permission, sanction, approval, order or other instrument whatsoever had been granted to the Government or such Government company and the Government or such Government company shall hold it for the remainder of the period for which the club would have held it under the terms thereof.
7. (6) If, on the appointed day, any suit, appeal or other proceeding of whatever nature, in relation to any matter specified in sub-section
8. (1) of section 25 in respect of the undertaking of the club which has vested in the Government under section 4, instituted or preferred by or against the club, is pending, the same shall not abate, be discontinued, or be, in any way, prejudicially affected by reason of the transfer of the undertaking, 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 undertaking is directed under section 6 to vest in a Government company, by or against such Government company.

Power of Government to direct vesting of the undertaking in a Government company.-(1) Notwithstanding anything contained in sections 4 and 5, the Government may, if they are satisfied that a Government company is willing to comply or has complied, with such terms and conditions as the Government may think fit to impose, direct, by notification, that the undertaking and the right, title and interest of the club in relation to the undertaking which has vested in the Government under section 4, shall, instead of continuing to vest in the Government, vest in that Government company either on the date of publication 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 and interest of the club in relation to the undertaking vest, under sub-section (1), in a Government company, that Government company shall, on and from the date of such vesting, be deemed to have become the owner in relation to such undertaking 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 that Government company.

Government or Government company not to be liable for prior liabilities.—(1) Every liability of the club, other than the liability specified in sub-section

1. (1) of section 25, in respect of any period prior to the appointed day, shall be the liability of the club and shall be enforceable against it, and not against the Government or, where the undertaking of the club vests in a Government company, against such Government company.
2. (2) For the removal of doubts, it is hereby declared that—
   • (a) save as otherwise expressly provided in this Act, no liability of the club in relation to its undertaking, in respect of any period prior to the appointed day, shall be enforceable against the Government; or where the undertaking vests in a Government company, against such Government company ;
   • (b) no award, decree or order of any court, tribunal or other authority in relation to the undertaking, passed after the appointed day in respect of any matter, claim or dispute, which arose before that day, shall be enforceable against the Government, or where the undertaking vests in a Government company, against such Government company.