Section 4 in The Indore Textiles Limited (Upkram Ka Arjan Aur Antaran) Adhiniyam, 1986
4. General effect of vesting.
(1)The undertaking of the Company shall be deemed to include all assets, rights, leaseholds, powers, authorities and privileges, and all properties movable and immovable, including lands, buildings, workshops, stores, instruments, plant and machinery and equipments, cash balances, cash on hand, cheques, demand drafts, reserve funds, investments, book debts and all other rights, title and interests in, or arising out of such properties as were immediately before the appointed day in the ownership, possession, power or control of the Company, whether within or outside India, and all books of accounts, registers and all other documents of whatever nature relating thereto.(2)All properties aforesaid which have vested in the State Government under Section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting them, and any attachment, injunction, decree or order of any Court, tribunal or other authority restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such properties, shall be deemed to have been withdrawn.(3)Every mortgagee of any property which has vested under this Act, in the State Government and every person holding any charge, lien or other interest in, or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, charge, lien or other interest.(4)For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (3) or any other person holding any charge, lien or other interest, in, or in relation to, any such property shall be entitled to claim, in accordance with his rights and interests, payment of the mortgage money or other dues, in whole or in part, out of the amount determined under Section 7 but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the State Government.(5)Any licence or other instrument granted to the Company in relation to the undertaking which has vested in the State Government under Section 3 at any time before the appointed day and in force immediately before that day shall continue to be in force on or after such day in accordance with its tenor in relation to and for the purposes of such undertaking, and on and from the date of vesting of such undertaking under Section 6 in a Government Company, such Government Company shall be deemed to be substituted in place of company referred to therein in such licence or other instrument as if such licence or other instrument had been granted to such Government Company and that Government Company shall hold it for the remainder of the period for which the company would have held it under the terms thereof.(6)If, on the appointed day, any suit, appeal or other legal proceedings of whatever nature in relation to any property which has vested in the State Government, under Section 3, instituted or preferred by or against the company is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the undertaking of the company of or anything contained in this Act, but the suit, appeal or other legal proceedings may be continued, prosecuted or enforced by or against the State Government, or, where the undertaking of the company is directed, under Section 6, to vest in a Government Company, by or against such Government Company.
