Amendment status not verified — confirm the current text below against the official source.
On the appointed day the undertaking of the company and the~ght, title and interest of the company in relation to its undertaking shall, by virtue of this Act, be traAsferred to and vest in the State Government: Provided that nothing herein contained or contained in any other law for the time being in force or in the Memorandum or Articles of Association of the company shall preclude from transferring and vesting the undertaking of the company to the State Government. 4.(1) On the appointed day the property_, rights, liabilities and obligations specified herein below in respect of the company shall vest in the State Government :- (i) all the fixed assets of the ~omp<.tny and all the doouments relating to the company; \ (ii) all the rights, liabilities and obligations of the company under hire purchase agreement, if any, for supply of materials or equipments made before the appointed day ; • • .·.-·, 6 State . Government not liable for past liabilities. -! . THE ASSAM GAZEITE, EXTRAORDINARY, JANUARY 6, 1997 (iii) all the rights, liabilities and obligations of the company entered into bonafide before tbe appqinted day not being a contracrrelating to borrowing or lending of money or to the employment of staff. (2) All the assets specified in clause (i) of sub-section (1) shall vest in the State Government free from all debts, mortgages, or similar obligations of the company or attaching to the company : Provided that debts, mortgages or obligations shall attach to the amount payable under this Act for the assets. (3) The rights and liabilities granted to the company under the relevant Electricity Act shall be deemed to have been terminated on the appointed day and all rights, liabilities and obligations which were granted in favour of the company under any agreement to supply electricity shall be deemed to have devolved on the State Government : Provided that when any such agreement is not in conformity with the rates and terms and conditions of supply approved by the State Government and in force on the appointed day, the agreement shall be voidable at the option of the State_ Government. (4) Any contract, whether expre ~s or implied, or other arrangement, in so far it relates to the management of the affairs of the company in relation t()~ its undertaking and in force immediately before the appointed day, shall be deemed to have terminated on the appointed day ; (5) It shall be lawful for the State Government or their authorised representative on or after the appointed day to remove the· obstructions, if any, and to take possession of the entire company, or as the case may be, the fixed assets and of all documents relatiog to the company which the State Government may require· for carrying it on. (6) All the liabilities and obligations, other than those vested in the State Government under clauses (i) and (iii) of sub-section (1) shall continue to be the liabilities and obligations of the company after the appointed.day. EXPLANATION :- All the liabilities and obligations in respect of staff, taxes, provident fund, Employees' State Insurance, industrial dispute and all other matters upto the appointed day, shall continue to be liabilities and obligations of the company. 5.(1) Liabilities of the undertaking of the company incurred in any period upto the appointed day shall be the liabilities of the compari)' and shall be enforceable against it and not against the State Government or where the undertaking of the company are directed, under section 6 to vest in the Board, against. that Board : Provided that the State Government may, after observing proper fivancial formalities and by notification, declare certain liabilities or class or classes of liabilities to be the liabilities of the State Government or the Board, as the<case may be. 1, .. r THE ASSAM GAZETIE, EXTRAORDINARY, JANUARY 6, 1997 7 • Power of the State Govenunent to direct vesting of the undertaking of the company in the Board. (2) No award, decree or order of any Court, Tribunal or other'authority in relation to the undertaking of the company passed on or after the appointed day in respect of any matter, claim or dispute arising before the appointed day shall be enforceable against the State Government or against the Board where the undertaking of the company stands transferred to and vested in the Board under this Act. ' (3) No legal liability for contravention before the appointed day by the undertaking of any provision of law, for the time being inforce, shall be ·· enforceable against the St_ate Government or where the undertaking of the company are directed under section 6 to vest in the Board, against that Boarcj.