Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act,1986
Act No : 30
Section : GENERAL EFFECT OF VESTING
SECTION 04: GENERAL EFFECT OF VESTING
(1) The textile undertakings 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 on hand, reserve funds, investments and book debts pertaining to the textile undertakings 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 in relation to the said undertakings, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto.
(2) All property as aforesaid winch have vested in the Central Government under sub-section (1) of Section 3-shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other in cumbrances affecting it, and any attachment, injunction or decree or order of any court or other authority restricting the use of such property in any manner shall be deemed to have been withdrawn.
(3) Where any licence or other instrument had been granted at any time before the appointed day to the Company in relation to the textile undertakings by the Central Government or a State Government or any local authority, the National Textile Corporation shall, on and from such day, be deemed to be substituted in such licence or other instrument in place of the Company as if such licence or other instrument had been granted to the National Textile Corporation and that Corporation shall hold it for the remainder of the period for which the Company to which it was granted would have held it under the terms thereof.
(4) 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.
(5) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (2) or any other person holding any charge, lien or other interest in, or in relating to, any such property shall be entitled to claim, in accordance with his rights and interests, payment of
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