Section 6(1) in Tamil Nadu Electricity Supply Undertakings (Acquisition) Act, 1954
(1)If compensation is payable in respect of an undertaking under Basis 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 Government:Provided that liabilities and obligations not incurred in a bona fide manner shall not vest or be deemed to have vested in the 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 Government; or(ii)where there are no corresponding assets which vest or are deemed to have vested in the Government.Explanation. - For the purposes of this sub-section, "undertaking" includes every business carried on by the licensee, the funds of which form part of the funds of the licensee.
