3. Transfer to, and vesting in, the Central Government of the undertakings of the
Company.—On the appointed day, the undertakings of the Company, and the right, title and interest of
the Company in relation to its undertakings, shall, by virtue of this Act, stand transferred to, and vest in,
the Central Government.
4
4. General effect of vesting.—(1) The undertakings of the Company 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
on hand, reserve funds, investments, 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 Company, 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 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 them, and any attachment, injunction, decree or order of any court
restricting the use of such properties in any manner shall be deemed to have been withdrawn.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 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 amount specified in section 7 and also out of the
amount 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.
(5) Any licence or other instrument granted to the Company in relation to any undertaking which has
vested in the Central Government under section 3, at any time before the appointed day and in force
immediately before that 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 day of vesting of such
undertaking under section 6 in the Cement Corporation, that Corporation shall be deemed to be
substituted in such licence or other instrument as if such licence or other instrument had been granted to
the Cement Corporation and that Corporation shall hold it for the remainder of the period for which that
Company would have held it under the terms thereof.
(6) If, on the appointed day, any suit, appeal or other proceeding of wherever nature in relation to
any property which has vested in the Central Government, under section 3, instituted or preferred by or
against the Company is pending, the same shall not abate, be discontinued or be, in any way,
prejudicially affected by reason of the transfer of the undertakings of the 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, where the undertakings of the Company are directed under
section 6 to vest in the Cement Corporation, by or against that Corporation.
5. Central Government or Cement Corporation not to be liable for prior liabilities.—(1) Every
liability of the Company in respect of any period prior to the appointed day, shall be the liability of the
Company and shall be enforceable against it and not against the Central Government, or, where the
undertakings of the Company are directed under section 6 to vest in the Cement Corporation, against that
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 provision of this Act, no
liability of the Company in respect of any period prior to the appointed day, shall be enforceable
against the Central Government, or where the undertakings of the Company are directed under
section 6 to vest in the Cement Corporation, against that Corporation;
(b) no award, decree or order of any court, tribunal or other authority in relation to the
undertakings of the 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, where
the undertakings of the Company are directed under section 6 to vest in the Cement Corporation,
against that Corporation;
5
(c) no liability incurred by the Company before the appointed day, for the contravention of a
provision of any law for the time being in force, shall be enforceable against the Central Government,
or, where the undertakings of the Company are directed under section 6 to vest in the Cement
Corporation, against that Corporation.
6. Power of Central Government to direct vesting of the undertakings of the Company in
Cement Corporation.—(1) Notwithstanding anything contained in sections 3 and 4, the Central
Government may, subject to such terms and conditions as it may think fit to impose, direct, by
notification, that the undertakings of the Company, and the right, title and interest of the Company in
relation to its undertakings, which have vested in the Central Government under section 3, shall, instead
of continuing to vest in the Central Government, vest in the Cement Corporation 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 of the Company, in relation to its undertakings, vest in the
Cement Corporation under sub-section (1), the Cement Corporation shall, on and from the date of such
vesting, be deemed to have become the owner in relation to such undertakings, and all the rights and
liabilities of the Central Government in relation to such undertakings shall, on and from the date of such
vesting, be deemed to have become the rights and liabilities of the Cement Corporation.