Section 5 in The Bharat Hydro Power Corporation Limited (Acquisition and Transfer of Undertaking) Act, 1996
5. State Government not liable for past liabilities.
(1)Liabilities of the undertaking of the company incurred in any period upto the appointed day shall be the liabilities of the company and shall be enforceable against it and not against the State Government or where the undertaking of the company are directed, under Section 6 to vest in the Board, against that Board :Provided that the State Government may, after observing proper financial formalities and by notification, declare certain liabilities or class or classes of liabilities to be the liabilities of the State Government or the Board, as the case may be.(2)No award, decree or order of any Court, Tribunal or other authority in relation to the undertaking of the company passed on or after the appointed day in respect of any matter, claim or dispute arising before the appointed day shall be enforceable against the State Government or against the Board where the undertaking of the company stands transferred to and vested in the Board under this Act.(3)No legal liability for contravention before the appointed day by the undertaking of any provision of law, for the time being inforce, shall be enforceable against the State Government or where the undertaking of the company are directed under Section 6 to vest in the Board, against that Board.
