3. Transfer to, and vesting in the Central Government of the undertakings of the two specified
companies.—On the appointed day, the undertakings of each of the two specified companies and the
right, title and interest of each of the two specified companies in relation to such undertakings shall, by
virtue of this Act, stand transferred to, and vest in, the Central Government.
4. General effect of vesting.—(1) The undertakings of each specified 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, cheques, demand drafts, 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 specified 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 encumbrances affecting them, and any attachment, injunction, 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any part of such properties shall be deemed to have been withdrawn.
(3) 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 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 amounts payable under sections 6 and 7 to the
specified company owning such property, but no such mortgage, charge, lien or other interest shall be
enforceable against any property which has vested in the Central Government.
(4) Any licence or other instrument granted to a specified 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 date of vesting of
such undertaking under section 3 in the Central Government, that Government shall be deemed to be
substituted in such licence or other instrument as if such licence or other instrument had been granted to
that Government and that Government shall hold it for the remainder of the period for which the specified
company would have held it under the terms thereof.
5. Owners of the two specified companies to be liable for certain prior liabilities.—(1) Every
liability of a specified company in respect of any period prior to the appointed day, shall be the liability of
the specified company and shall be enforceable against it and not against the Central Government.
(2) For the removal of doubts, it is hereby declared that,—
(a) no liability of either of the two specified companies in relation to its undertakings in respect of
any period prior to the appointed day, shall be enforceable against the Central Government;
(b) no award, decree or order of any court, tribunal or other authority in relation to the
undertakings of either of the two specified companies passed on or after the appointed day, in respect
of any matter, claim or dispute, which arose before that day, shall be enforceable against the Central
Government;
(c) no liability incurred by a specified company before the appointed day, for the contravention of
any provision of law for the time being in force, shall be enforceable against the Central Government.