7. Vesting of the undertaking of the Metal Corporation in the Central Government.—(1) On the
appointed day, the undertaking of the Metal Corporation, and the right, title and interest of the Metal
Corporation in relation to its undertaking, shall stand transferred to, and shall vest absolutely in, the
Central Government.
(2) Subject to the other provisions contained in this Act, all property included in the undertaking of
the Metal Corporation which has vested in the Central Government under sub-section (1) shall, by force
of such vesting, be freed and discharged from any trusts, obligations, mortgages, charges, liens and other
incumbrances affecting it, and any attachment, injunction or any decree or order of a court, tribunal or
other authority restricting the use of such property in any manner shall be deemed to have been
withdrawn.
Explanation.—For the removal of doubts, it is hereby declared that the mortgagee of any property
included in the undertaking of the Metal Corporation, 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, from the Central
6
Government but no such mortgage, charge, lien or other interest shall be enforceable against any property
which has vested in the Central Government.
(3) Subject to the other provisions contained in this Act, all contracts and working arrangements
which are subsisting immediately before the appointed day and affecting the Metal Corporation shall, in
so far as they relate to the undertaking of the Metal Corporation, cease to have effect or be enforceable
against the Metal Corporation or any person who was surety or had guaranteed the performance thereof
and shall be of as full force and effect against or in favour of the Central Government and enforceable as
fully and effectually as if, instead of the Metal Corporation, the Central Government had been named
therein or had been a party thereto.
(4) Subject to the other provisions contained in this Act, any proceeding or cause of action pending or
existing immediately before the appointed day by or against the Metal Corporation or the Central
Government or the Government company referred to in section 12 of the Metal Corporation of India
(Acquisition of Undertakings) Act, 1966 (36 of 1966), in relation to the undertaking of the Metal
Corporation may, as from that day, be continued and enforced by or against the Central Government or
the Government company referred to in section 9, as it might have been enforced by or against the Metal
Corporation, the Central Government or the Government company, as the case may be, if this Act had not
been enacted, and shall cease to be enforceable by or against the Metal Corporation, its surety or
guarantor.
8. Central Government to be the lessee of the State Government.—(1) Where the right of the
Metal Corporation under any mining lease granted, or deemed to have been granted to it by any State
Government or any other person, vest in the Central Government under section 7, the Central
Government shall, on and from the date of such vesting, be deemed to have become the lessee of such
State Government or such other person, as the case may be, in relation to such mine, as if a mining lease
in respect of such mine had been granted to the Central Government, and the period of such lease shall be
the entire period for which such lease could have been granted by the State Government or such other
person under the Mineral Concession Rules, and, thereupon all the rights under such mining lease,
including surface, underground and other rights granted to the lessee shall be deemed to have been
transferred to, and vested in, the Central Government.
(2) On the expiry of the term of any lease referred to in sub-section (1), such lease shall, if so desired
by the Central Government, be renewed by the State Government or other person on the same terms and
conditions on which such lease was held immediately before the appointed day by the Metal Corporation,
for the maximum period for which such lease could be renewed under the Mineral Concession Rules.
9. Power of Central Government to direct vesting of the undertaking of the Metal Corporation
in a Government company.—(1) Notwithstanding anything contained in section 7, 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 any order in writing,
that the undertaking of the Metal Corporation and the right, title and interest of the Metal Corporation in
relation to such undertaking shall, instead of continuing to vest in the Central Government, vest in the
Government company either on the date of publication of the direction or on such earlier or later date (not
being a date earlier than the appointed day), as may be specified in the direction.
(2) Where the right, title and interest of the Metal Corporation in relation to its undertaking 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 lessee in relation to the mines of which the Metal
Corporation was the lessee as if a mining lease in respect of such mines had been granted to the
Government company, and the period of such lease shall be the entire period for which such lease could
have been granted under the Mineral Concession Rules; and all the rights and liabilities of the Central
Government in relation to such mines shall, on and from the date of such vesting, be deemed to have
become the rights and liabilities, respectively, of the Government company.
(3) The provisions of sub-section (2) of section 8 shall apply to a lease which vests in a Government
company as they apply to a lease which has vested in the Central Government and any reference therein
to the Central Government shall be construed as a reference to the Government company.
7
(4) Any reference hereafter in this Act to the Government company shall be construed as a reference
to the Government company which is appointed as the Administrator under sub-section (1) of section 5,
or, as the case may be, the Government company referred to in the direction made under sub-section (1).