Section 4 in The Bharat Hydro Power Corporation Limited (Acquisition and Transfer of Undertaking) Act, 1996
4. General effect of vesting.
(1)On the appointed by 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 company and all the documents 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 ;(iii)all the rights, liabilities and obligations of the company entered into bona fide before the appointed day not being a contract relating 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 express or implied, or other arrangement, in so far it relates to the management of the affairs of the company in relation to 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 relating 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.
