Section 6(2) in Tamil Nadu Electricity Supply Undertakings (Acquisition) Act, 1954
(2)(a)If compensation is payable in respect of an undertaking under Basis C, only the property, rights, liabilities and obligations specified herein shall vest or be deemed to have vested 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 bonafide before the vesting date;(iii)all the rights, liabilities and obligations of the licensee under any other contract entered into bonafide before the vesting date not being a contract relating to the borrowing or lending of money.(b)All the assets specified in clause (a)(i) shall vest or shall be deemed to have vested, 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 or shall be deemed to have attached to the compensation payable under this Act for the assets.
