Section 5 in Madura Sugars Limited (Acquisition and Transfer of Undertaking) Act, 1984
5. General effect of vesting.
(1)The undertaking shall be deemed to include all assets, rights, powers, authorities and privileges, in relation to the said undertaking and all property, movable and immovable, including lands, buildings, workshops, stores, instruments, machinery, automobiles and other vehicles and goods under production or in transit, cash balances, reserve hinds, I investments and all other rights and interests in, or arising out of, such property as were immediately before the appointed day in the ownership, possession, power or control of that undertaking, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto.(2)All properties as aforesaid which have vested in the Government under section 4 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting them, and any attachment, injunction, decree or order of any Court or other authority restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such properties shall be deemed to have been withdrawn.(3)Every mortgagee of any property which has vested under this Act in the Government and every person holding any charge, lien or other interest in or in relation to, any such property shall give, within such time and in such manner as maybe prescribed, an intimation to the Commissioner of such mortgage, charge, lien or other interest.(4)For the removal doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (3) or any other person holding any charge, lien or other interest in, or in relation to any such property shall be entitled to claim, in accordance with his rights and interests, payment of the mortgage money or other dues, in whole or in part, out of the amounts! specified in section 9, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Government.(5)Any licence or other instrument granted to the Company in relation to its undertaking which has vested in the Government under section 4 at any time before the appointed day and in force immediately before the appointed day shall continue to be in force on and after such day in accordance with its tenor in relation to and for the purposes of such undertaking, and on and from the date of vesting of such undertaking under section 6, in an existing Government company, or under section 7, in a new Government company, the existing, or new, Government company, as the case may be, shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to such existing, or new, Government company shall hold it for the remainder of the period for which the Company would have held it under the terms thereof.(6)If, on the appointed day, any suit, appeal or other proceeding of whatever nature, in relation to any property which has vested in the Government under section 4, instituted or preferred by or against the Company, is pending, the same shall not abate, be discontinued, or be, in any way, prejudicially affected by reason of the transfer of the undertaking, or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted or enforced by or against the Government, or where the undertaking is directed under section 6, to vest in an existing Government company or become transferred by virtue of the provisions of section 7 to a new Government company, by or against such Government company.
