Amendment status not verified — confirm the current text below against the official source.
(I) The :-lroperty, rights, liabilities and obliga- uii.dcr• ·k· tions specified below in respect of the undertaking mir. shall vest in the Government on the vesting date:- (i) all the fixed assets of the licensee and all the document• xelating to the undertaking ; - I 5 (ii) all the rights, liabilities and obligations o( · the licensee under hire-purchase agree· ments, if any, for the supply of materials or equipment made bona.fide before the vesting date; ·• (iii) all the rights, liabilities and obligations of the licensee under any other contract entered into bona.fide before the vesting date, not being a contract relating to the borrow- ing or lending of money, or to the employ· ment of staff. (2) All the assets specified in su b-section (I) (i) shall vest in the Government free from any debts, mortgages or similar obligations of the licensee or attaching to the undertaking : Provided that such debts, mortgages or obligations shall attach to the amount payable under this Act for the assets. / (3) In the case of an undertaking which vests in the Government under this Act, the licence granted to it under Part II of the Electricity Act shall be deemed to have been terminated on the vesting date and all the rights, liabilities and obligations of the licensee under any agreement to supply eletricity entered into before that date shall devolve or shall be deemed to have devolved on the Government: Provided that where any such agreement is not in conformity with the rates and conditions of s!!pply approved by the Government and in force on the vesting date, the agreement shall be voidable at the option of the Government. (4) In respect of any undertaking to which section 4 applies, it shall be lawfol for the Govern• mentor their authorised representative on and after the vesting date, after removing any obstruction that may be or might have been offered, to take posses- "lion of the entire undertaking, or as the case may be, the fixed assets and of all documents relating to the undertaking which the Government may require for carrying it on. (5) All the liabilities and obligations, other than those vesting in the Government under sub-sections {l) and (3), shall continue to be the liabilities and obligations of the licensee, after the vesting date. Explanation : All liabilities and obligations in respe~J of staff, taxes, provident fund, employees' I 6 state Insurance , industrial disputes and all other matters, upto and including the vesting date, shall continue to be the liabilities and obligations of the licensee, after the vesting date. ~~· •f