Section 424D(7) in The Companies (Second Amendment) Act, 2002
(7)Where a sanctioned scheme provides for the transfer of any property or liability of the sick industrial company in favour of any other company or person or where such scheme provides for the transfer of any property or liability of any other company r person in favour of the sick industrial company, then, by virtue of, and to the extent provided in, the scheme, on and from the date of coming into operation of the sanctioned scheme or any provision thereof, the property shall be transferred to, and v st in, and the liability shall become the liability of, such other company or person or, as the case may be, the sick industrial company.
