Section 7 in The Tinsukia and Dibrugarh Electric Supply Undertakings (Acquisition) Act, 1973
7. Vesting of undertakings.
(1)The property, rights, liabilities and obligations specified below in respect of the undertaking shall vest in the Government on the vesting date :(i)all the fixed assets of the licensee and all the documents relating to the undertaking ;(ii)all the rights, liabilities and obligations of the licensee under hire-purchase agreements, if any, for the supply of materials or equipment made bona fide before the vesting date ;(iii)all the rights, liabilities and obligations of the licensee under any other contract entered into bona fide before the vesting date, not being a contract relating to the borrowing or lending of money, or to the employment of staff.(2)All the assets specified in sub-section (1)(i) shall vest in the Government free from any debts, mortgages or similar obligations of the licensee or attaching to the undertaking :Provided that such debts, mortgages or obligations shall attach to the amount payable under this Act for the assets.(3)In the case of an undertaking which vests in the Government under this Act, the licensee granted to it under Part II of the Electricity Act shall be deemed to have been terminated on the vesting date and all the rights, liabilities and obligations of the licensee under any agreement to supply electricity entered into before that date shall devolve or shall be deemed to have been devolved on the Government:Provided that where any such agreement is not in conformity with the rates and conditions of supply approved by the Government and in force on the vesting date, the agreement shall be voidable at the option of the Government.(4)In respect of any undertaking to which Section 4 applies, it shall be lawful for the Government or their authorised representative on and after the vesting date, after removing any obstruction that may be or might have been offered, to take possession of the entire undertaking, or as the case may be, the fixed assets and of all documents relating to the undertaking which the Government may require for carrying it on.(5)All the liabilities and obligations, other than those vesting in the Government under sub-sections (1) and (3), shall continue to be the liabilities and obligations of the licensee, after the vesting date.Explanation. - All liabilities and obligations in respect of staff, taxes, provident fund, employees' state insurance, industrial disputes and all other matters, up to and including the vesting dale, shall continue to be the liabilities and obligations of the licensee, after the vesting date.
