Section 5 in Karnataka Co-Operative Textile Mills (Acquisition and Transfer) Act, 1986
5. General effect of vesting.
(1)The mills shall be deemed to include all assets, rights, leaseholds, powers, authorities and privileges and all property, moveable and immoveable, including lands, buildings, workshops, stores, instruments, machinery and equipments, cash balance, cash on hand, reserve funds, investments and book debts and all other rights and interests, in or arising out of such property, as were immediately before appointed day, in the ownership, possession, power or control of the lessor or lessee [or owner of land] [Inserted by Act 20 of 2005 w.e.f. 30.06.1986] whether within or outside India, and all books of accounts, registers and other documents of whatever nature relating thereto.(2)All properties aforesaid, which have vested in the Government under section 4 shall, by virtue of such vesting, be freed and discharged from any trust, obligation, mortgage, lease, charge, lien and all other encumbrance affecting them and any attachment, injunction or decree or order of any court restricting the use of such property, in any manner shall be deemed to have been withdrawn.(3)Every mortgagee of any property [and every owner of land having interest in, or in relation to the property] [Inserted by Act 20 of 2005 w.e.f. 30.06.1986] which has vested under this Act in the Government and every person holding any charge, lease, lien or other interest in, or in relation to , any such property shall give, within such time and in such manner as may be prescribed, an intimation to the Commissioner of such mortgage, lease, charge, lien or other interest.(4)For the removal of doubts, it is hereby declared that the mortgagee of any property [and every owner of land having interest in, or in relation to the property] [Inserted by Act 20 of 2005 w.e.f. 30.06.1986] referred to in sub-section (3) or any other person holding any charge, lease, lien or other interest in or in relation to, any such property shall be entitled to claim in accordance with his rights and interest, payment of the mortgage money [amount or other dues] [Substituted by Act 20 of 2005 w.e.f. 30.06.1986] in whole or in part out of the amount specified in section 9 and also out of the amount determined under section 10 but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Government.(5)Any licence or other instrument granted to the lessor or lessee in relation to the mills which has vested in the Government under section 4, at any time before the appointed day and in force immediately before that day shall continue to be in force on and after such day in accordance with its tenor in relation to and for the purposes of the mills, and on and from the date of vesting of the mills under section 8 in the Company, the Company shall be deemed to be substituted in such licence or other instrument in place of the lessor or lessee referred to therein as if such licence or other instrument had been granted to the Company and the Company shall hold it for the remainder of the period for which the lessor or lessee would have held it under the terms thereof.(6)If, on the appointed day, any suit, appeal or other proceeding of whatever nature, in relation to any property which has vested in the Government under section 4, instituted or preferred by or against the mills, is pending the same shall not abate, be discontinued or be in any way, prejudicially affected by reason of the transfer of the mills or anything contained in this Act but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the Government or, where the mills is directed, under section 8 to vest in the Company, by or against the Company.
