6. The Council and Society to vest in Board.—(1) On and from the appointed day, there shall be
transferred to, and vest in, the Board constituted under section 3, the Council and the Society.
(2) The Council and the Society which is transferred to, and which vests in, the Board under subsection (1) shall be deemed to include all assets, rights, powers, authorities and privileges and all property
movable and immovable, real or personal, corporeal or incorporeal, present or contingent, of whatever
nature and wheresoever situate, including lands, buildings, machinery, equipments, cash balances, capital,
reserves, reserve funds, investments, tenancies, leases and book debts and all other rights and interests
arising out of such property as were immediately before the appointed day in the ownership or possession
or power of the Council, or as the case may be, the Society, whether within or outside India, all books of
account and documents relating thereto and shall also be deemed to include all borrowings, liabilities and
obligations of whatever kind then subsisting of the Society, or as the case may be, the Council.
7. General effect of vesting of Council and Society in Board.—(1) All contracts, agreements and
working arrangements subsisting immediately before the appointed day and affecting the Council, or, as
the case may be, the Society shall, in so far as they relate to the Council, or, as the case may be, the
Society, cease to have effect or be enforceable against the Council, or, as the case may be, the Society and
shall be of as full force and effect against or in favour of the Board in which the Council and the Society
have vested by virtue of this Act and enforceable as fully and effectively as if, instead of the Council, or,
as the case may be, the Society, the Board had been named therein or had been a party thereto.
(2) Any proceeding, suit or cause of action pending or existing immediately before the appointed day
by or against the Council or the Society may, as from that day, be continued and enforced by or against
the Board in which it has vested by virtue of this Act, as it might have been enforced by or against the
Council or the Society if this Act had not been passed, and shall cease to be enforceable by or against the
Council or, as the case may be, the Society.
8. Licences, etc., to be deemed to have been granted to Board.—With effect from the appointed
day, all licences, permits, quotas and exemptions, granted to the Council or the Society in connection with
the affairs and business of the Council, or, as the case may be, the Society, under any law for the time
being in force, shall be deemed to have been granted to the Board in which the Council and the Society
have vested by virtue of this Act.
9. Tax exemption or benefit to continue have effect.—(1) Where any exemption from, or any
assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry
forward, as the case may be, of any unabsorbed depreciation or investment allowance or other allowance
or loss has been extended or is available to the Council or the Society, under the Income-tax Act, 1961
(43 of 1961), such exemption, assessment or benefit shall continue to have effect in relation to the Board
in which the Council and the Society have vested by virtue of this Act.
(2) Where any payment made by the Council or the Society is exempted from deduction of tax at
source under any provision of the Income-tax Act, 1961(43 of 1961) the exemption from tax will continue
to be available as if the provisions of the said Act made applicable to the Council or the Society were
operative in relation to the Board in which the Council and the Society have vested by virtue of this Act.
(3) The transfer and vesting of the Council or the Society in terms of section 6 shall not be construed
as a transfer within the meaning of the Income-tax Act, 1961(43 of 1961) for the purposes of capital
gains.
8
10. Guarantee to be operative.—Any guarantee given for or in favour of the Council or the Society
with respect to any loan or lease finance shall continue to be operative in relation to the Board in which
the Council and the Society have vested by virtue of this Act.
11. Provisions in respect of officers and other employees of Council and Society.—(1) (a) Every
officer or other employee of the Council serving in its employment immediately before the appointed day
shall, in so far as such officer or other employee is employed in connection with the Council which has
vested in the Board by virtue of this Act, becomes, as from the appointed day, an officer, or, as the case
may be, other employee of the Board.
(b) Every officer or other employee of the Society serving in its employment immediately before the
appointed day shall, in so far as such officer or other employee is employed in connection with the
Society which has vested in the Board by virtue of this Act, becomes, as from the appointed day, an
officer, or, as the case may be, other employee of the Board.
(2) Every officer or other employee of the Council or the Society who becomes an officer, or as the
case may be, other employee of the Board, as referred to in sub-section (1), shall hold his office or service
therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same
obligations and rights and privileges as to leave, insurance, superannuation scheme, provident fund, other
funds, retirement, pension, gratuity and other benefits as he would have held under the Council, or, as the
case may be, the Society, if it had not vested in the Board and shall continue to do so as an officer or other
employee, as the case may be, of the Board, or until the expiry of a period of one year from the appointed
day if such officer or other employee opts not to be the officer or other employee of the Board within such
period:
Provided that if the Board thinks it expedient to extend the period so fixed, it may extend the same up
to a maximum period of one year.
(3) Where an officer or other employee of the Council or the Society opts under sub-section (2) not to
be in the employment or service of the Board in which the Council and the Society have vested, such
officer or other employee shall be deemed to have resigned from the respective cadre.
(4) Notwithstanding anything contained in the Industrial Disputes Act, 1947(14 of 1947) or in any
other law for the time being in force, the transfer of the services of any officer or other employee of the
Council or the Society to the Board shall not entitle such officer or other employee to any compensation
under this Act or any other law for the time being in force and no such claim shall be entertained by any
court, tribunal or other authority.
(5) The officers and other employees who have retired before the appointed day from the service of
the Council or the Society and are entitled to any benefits, rights or privileges shall be entitled to receive
the same benefits, rights or privileges from the Board in which the Council and the Society have vested.
(6) The trusts of the Provident Fund and Group Insurance and Superannuation Scheme of the Council
or the Society for the welfare of officers or employees would continue to discharge their functions in the
Board as was being done hitherto in the Council or the Society and tax exemption granted to Provident
Fund or Group Insurance and Superannuation Scheme would continue to be applied to the Board.
(7) After the expiry of the period of one year, or the extended period, as referred to in sub-section (2),
all the officers and other employees transferred and appointed to the Board, other than those opting not to
be the officers or employees of the Board within such period, shall be governed by the rules and
regulations made by the Board in respect of the service conditions of the officers and other employees of
the said Board.