3. Transfer of 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 shall vest in, the
Central Government.
4. General effect of vesting.—(1) The undertakings of the Company shall be deemed to include all
assets, rights, lease-holds, powers, authorised 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 encumbrances affecting them, and any attachment, injunction or decree or order of any court
restricting the use of such property 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any part of such properties shall be deemed to have been withdrawn.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) 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 8, and also out of the
monies determined under section 9, 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
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 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 the Braithwaite and Company Limited, or, where the undertakings of the
Company are directed, under section 7, to vest in a Government company, against that Government
company.
5. Central Government or the Braithwaite and Company Limited or the Government company
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 the Braithwaite and Company Limited, or, where the undertakings of the
Company are directed, under section 7, to vest in a Government company, against that Government
company.
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(2) For the removal of doubts, it is hereby declared that,—
(a) save as otherwise expressly provided in 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 the
Braithwaite and Company Limited, or, where the undertakings of the Company are directed, under
section 7, to vest in a Government company, against that Government company;
(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 the
Braithwaite and Company Limited, or, where the undertakings of the Company are directed, under
section 7, to vest in a Government company, against that Government company;
(c) no liability incurred by the 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, or
the Braithwaite and Company Limited, or, where the undertakings of the Company are directed,
under section 7, to vest in a Government company, against that Government company.
6. Vesting of the undertakings of the Company in the Braithwaite and Company Limited.—(1)
Notwithstanding anything contained in sections 3 and 4, the Central Government shall, as soon as may be,
after the promulgation of the Ordinance, 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 Braithwaite and Company Limited 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
Braithwaite and Company Limited under sub-section (1), the Braithwaite and Company Limited 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, respectively, of the
Braithwaite and Company Limited.
7. Power of Central Government to direct vesting of the undertakings of the Company in a
Government company.—(1) Notwithstanding anything contained in sections 3, 4 and 6, the Central
Government may, if it is satisfied that a Government company is willing to comply, or has complied, with
such terms and conditions as that Government 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 and thereafter in the
Braithwaite and Company Limited, under section 6, shall, instead of continuing to vest in the Braithwaite
and Company Limited, vest in the Government company 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 a
Government company under sub-section (1), the Government company 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 or the Braithwaite and Company Limited in relation to such
undertakings shall, on and from the date of such vesting, be deemed to have become the rights and
liabilities, respectively, of the Government company.