3. Vesting in the Central Government of Mokameh unit and undertakings of Arthur Butler and
Company.—On the appointed day,—
(i) the Mokameh unit and the right, title and interest of Britannia Engineering Company in
relation to the Mokameh unit; and
(ii) the undertakings owned by Arthur Butler and Company and the right, title and interest of
Arthur Butler and Company in relation to the said undertakings,
shall, by virtue of this Act, stand transferred to, and shall vest in, the Central Government.
4. General effect of vesting.—(1) The Mokameh unit, and the undertakings of Arthur Butler and
Company, 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 balances, cash in hand, reserve funds,
investments and book debts pertaining to the Mokameh unit or, as the case may be, the undertakings of
Arthur Butler and Company, 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—
(a) of Britannia Engineering Company, in relation to the Mokameh unit, or
(b) of Arthur Butler and Company, in relation to the undertakings owned by it,
whether within or outside India, and all books of account, registers and other documents of whatever
nature relating thereto.
(2) All properties as aforesaid which have vested in the Central Government under section 3 shall, by
force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all
other incumbrances affecting it, and any attachment, injunction or decree or order of any court 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whole or any part of such properties shall be deemed to have been withdrawn.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) Every mortgagee of any property which has vested under this Act in the Central 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) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in
sub-section (3) or any other person holding and 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 amounts specified in the First Schedule and also out of
the monies determined under section 8, but no such mortgage, charge, lien or other interest shall be
enforceable against any property which has vested in the Central Government or the Government
company, as the case may be.
5
(5) If, on the appointed day, any suit, appeal or other proceeding of whatever nature instituted or
preferred by or against Britannia Engineering Company in relation to the Mokameh unit, or by or against
Arthur Butler and Company in relation to any undertaking owned by it, is pending, the same shall not
abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the Mokameh
unit or, as the case may be, the undertakings of Arthur Butler and 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 Central Government or the Government company as the case may be.
5. Power of Central Government to direct vesting of Mokameh unit and the undertakings of
Arthur Butler and Company in a Government company.—(1) Notwithstanding anything contained in
section 3, the Central Government may, if it is satisfied that a Government company (whether in
existence at the commencement of this Act or incorporated thereafter) is willing to comply, or has
complied, with such terms and conditions as that Government may think fit to impose, direct, by
notification, that the Mokameh unit and the undertakings referred to in section 3, and the right, title and
interest of Britannia Engineering Company in relation to the Mokameh unit, and the right, title and
interest of Arthur Butler and Company in relation to the undertakings owned by it, which have vested in
the Central Government under section 3, shall instead of continuing to vest in the Central Government,
vest in the 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.
(2) Where the right, title and interest in relation to the Mokameh unit and in relation to the other
undertakings referred to in section 3, 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
of the Mokameh unit and of the undertakings of Arthur Butler and Company and all the rights and
liabilities of the Central Government in relation to the Mokameh unit and the undertakings of Arthur
Butler and Company shall, on and from the date of such vesting, be deemed to have been the rights and
liabilities, respectively, of the Government company.
6. Britannia Engineering Company and Arthur Butler and Company to be liable for certain
prior liabilities.—(1) Every liability of Britannia Engineering Company in relation to the Mokameh unit,
or of Arthur Butler and Company in relation to the undertakings owned by it, in respect of any period
prior to the appointed day, shall be the liability of Britannia Engineering Company, or Arthur Butler and
Company, as the case may be, and shall be enforceable against such company and not against the Central
Government or the Government company.
(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,—
(i) no liability of Britannia Engineering Company, in relation to the Mokameh unit, and
(ii) no liability of Arthur Butler and Company, in relation to the undertakings owned by it,
in respect of any period prior to the appointed day, shall be enforceable against the Central
Government or the Government company, as the case may be;
(b) no award, decree or order of any court, tribunal or other authority in relation to the Mokameh
unit, or in relation to the undertakings owned by Arthur Butler and Company, passed after the
appointed day in respect of any matter, claim or dispute, which arose before that day, shall be
enforceable against the Central Government or the Government company, as the case may be;
(c) no liability incurred before the appointed day by—
(i) Britannia Engineering Company, in relation to the Mokameh unit, or
(ii) Arthur Butler and Company, in relation to the undertakings owned by it,
for the contravention of any provision of law for the time being in force shall be enforceable against
the Central Government or the Government company as the case may be.