Amendment status not verified — confirm the current text below against the official source.
(1) If compensation is payable in respect of an under- undertaking assets. Or taking under Baris A or Basis B, all property belonging to the undertaking including fixed 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 to have vested in the Governnlent: Provided that liabilities arvd obligations not illcurred in a bonafide manner shzll not vest or be deorned to have vested in the Governine~~t- (i) in so far as they are in excess of the vnluc on the vesting date of t ' l ~ corresponding assels, if ;rnv, vesting or deemed to hcve vested in tlte Goveri~rncrzt ; or (ii) where there ,Ire, no corresponding assals which vest or are deennod to Zra.ve .~ested in tlxs C~>vl;ri~lnanr. Expla~rutic/i.z.----For- the purposes o f this sub-section, "undertaking" incltlctcls evcjey b 3 * ~ : - . - ~ ~ ~.l~,rrie~~ or1 by the licensee, the fuizcis o ~ " \v hie11 form part c.rt' thw frtnds of ttle licensee. 1954 : T.N. Act XXIX] Electr ici . y Sicpply 31 5 Underrak ings (A cquisit ion) (2) (a) If compensation is payable in respect of an undcrtaicing under Basis C, only the property, rights, liabilities arid obligations specified herein shall vest or be deemed ro have vested in the Government on the vesting date-- (i) al! the fixed assets of the licensee and all the documents relating to the undertaking '; (ii) all the rights, liabilities and obligations of the licensre under hire-purchase agreements, if any, for the supply of mattrials or equipment made bonafide before the vesting date ; (iii) all the rights, liablities and obligations of the licensee under any other contract enle~ed into bonafde before the vesting date not being a contract relating to the borrowing or lending of money. (b) All the asscts specified in clause (a) (i) shall vest or shall be deemed to have vested in the Government free from any debts,mortgages or similar obligations of the , licensee or attaching to the undrrtalang : Provided. that such dcbts, mortgages or obligations shall attach or shall be deemed to have attached to the compensation payable under this Act for the assets. (3) In the case of all undertakings which vest or are deemed to have vested in the Government under this Act, the licence granted or the sa ncticn given for the supply of et-icity shall be deemed to have baen termin. tee, on the vesting ckte and all the rights , liabilitic and obligatio- of . the licensee under any agreement to supply electricity ontered into before that date shall devolve or shall be deemed to have dolvolved on the Goverr?.ment: Provided that where any such agreement is not in conformity with the rates and conditions of supply appro- ved by the Government and in force on the vesting date, the agreement shall be voidable or shall be deemed to have been voidable at the option of the Government. (4) In respect of any undertaking to whichsection 4 applies or any undertaking takenover, it shall be, and shall be deemed always to have beeln aw ul t i r the GLVL A - ment, after removing any obstruction that may bb L- might have been offarod, to take possession of the entire under- taking or, as the case may be, of the fixed assats and of all documents relating to the undertsking which the Government may require, br required for cmying it on, 316 Electricity S,rppt~ [I934 : T.N. Act XXIX Undertukitzgs (Arqrrisit ion) Appoint men t