Burn Company and Indian Standard Wagon Company (Nationalisation) Act ,1976
Act No : 97
Section : GENERAL EFFECT OF VESTING
SECTION 04: GENERAL EFFECT OF VESTING
(1) The undertakings of each of the two companies referred to insection 3-shall be deemed to include all assets, rights, lease-holds, powers, authorities and privileges and all property, moveable and immovable including lands, buildings, workshops, stores, instruments, machinery and equipment, cash balances, cash on hand, 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 either of the two companies, 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 and obligations specified in subsection (2) ofsection 5-.
(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 restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such property shall be deemed to have been withdrawn.
(3) Every mortgage 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 iBtittedto 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 relation to the company owning such property, in the First Schedule, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Central Government.
(5) If on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any matter specified in sub-section (2) ofsection 5-in respect of any undertaking of either of the two companies, instituted or preferred by or against either of the two companies, 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 either of the two companies or of anything contained in this Act, but the suit, appeal brother proceeding may be continued, prosecuted or enforced by or against the Central Government, or, where the undertakings of the two companies are directed, under section 6-, to vest in a Government company, against that Government company.
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