Amendment status not verified — confirm the current text below against the official source.
When an order under sub-section (1) of section 4 is made in respect of an undertaking of a licensee, all property belonging to such undertaking including assets, cash securities, investments, documents and the like and all its rights, liabilities and obligations as on the vesting date shall vest or shall be deemed have vested in the State Government, free from any debt, mortgage or similar obligations of the licensee or attaching to the undertaking : Provided that any such debt, mortgage or similar obligations shall attach to the amount of compensation payable to the license under section 6 in substitution for the undertaking : Provided further that liabilities and obligations not incurred in a bona-fide manner shall not vest in the State Government- (i) in so far as they are in excess of the value on the vesting date of the corresponding assets, if any, vesting or deemed to have vested in the State Government ; or (ii) where there are no corresponding assets which vest or are deemed to have vested in the State Government. Explanation.-For the purposes of this section, “undertaking” includes every business carried on by the licensee, the funds of which form part of the funds of the licensee.