- [Subject to the provisions of sub-section (2A) of section 7, with effect from the appointed day and for a period of five years thereafter, or, in the case of acquisition of the undertaking of the Company under section 7, till the date of such acquisition, whichever is earlier-] [Words substituted for the words 'With effect from the appointed day and for a period of five years thereafter - ' by W.B. Act 6 of 1970, w.e.f. 1.10.1960.](a)the undertaking of the Company shall stand transferred to the State Government for the purpose of management and control;(b)the Company and its agents, including managing agents, if any, and servants shall cease to exercise management or control in relation to the undertaking of the Company;(c)all contracts, excluding any contract or contracts in respect of agency or managing agency, subsisting immediately before the appointed day and affecting the undertaking of the Company shall cease to have effect or to be enforceable against the Company, its agents or any person who was a surety thereto or had guaranteed the performance thereof and shall be of as full force and effect against or in favour of the State of West Bengal and shall be enforceable as fully and effectively as if instead of the Company the State of West Bengal had been named therein or had been a party thereto:Provided that-(i)except where the State Government by notification in the Official Gazette otherwise directs, the provisions of this clause shall not apply to any contract which was executed after 1st day of January, 1958;(ii)any transfer by way of sale, exchange, gift, mortgage, lease or otherwise, affecting the undertaking of the Company or any part thereof, made between the date of commencement of this Act and the appointed day shall have no effect whatsoever and shall stand cancelled, so, however, that such cancellation shall not affect any rights which the transferor and the transferee may otherwise have against each other;(d)subject to the provisions of clause (c), any proceeding pending or any cause of action existing before the appointed day in relation to the undertaking of the Company may be continued or enforced by or against the State of West Bengal and shall cease to be continued or enforced by or against the Company, its agents, sureties or guarantors;(e)persons employed by the Company in connection with the undertaking of the Company and continuing in office immediately before the appointed day shall be employed by the State Government on such terms and conditions, not being less advantageous than what they were entitled to immediately before the appointed day, as may be determined by the State Government:Provided that the State Government may, if it considers any such person to be unsuitable, discharge him, so, however, that, in the case of any such person who has been in continuous service under the Company for not less than one year immediately before the appointed day, the provisions of section 25FF of the Industrial Disputes Act, 1947, shall be applicable, that is to say, such discharge shall not take effect until the State Government has-(i)given him notice of paid him wages in lieu of notice, as provided in clause (a), and(ii)paid him compensation as provided in clause (b),of section 25F of the said Act.
