Section 4 in The Basumati Private Limited (Acquisition Of Undertaking) Act, 1974
4. General effect of vesting. -
(1)The undertaking of the company shall be deemed to include all assets, rights, powers, authorities and privileges and all properties, movable and immovable, machinery including rotaries and composing machine, reserve funds, investments and all other rights and interests arising out of such properties as were immediately before the appointed day in the ownership, power or control of the company in relation to the undertaking, or in the possession of the company irrespective of the fact whether the company has any right, title or interest in such properties or not, and all documents of whatever nature relating thereto but does not include the right, title and interest of the owners of lands and buildings in possession of the company, cash balance of the company and the amounts receivable by the company from its debtors.(2)Any contract, whether express or implied, or other arrangement, whether under any statute or otherwise, in so far as it relates to the management of the business and affairs of the company in relation to its undertaking and in force immediately before the appointed day, or any order made by any court in so far as it relates to the management of the business and affairs of the company in relation to its undertaking and in force immediately before the appointed day, shall be deemed to have terminated on the appointed day.(3)All persons in charge of the management, including persons holding offices as directors, managers or any other personnel connected with the management of the company immediately before the appointed day, shall be deemed to have vacated their offices as such on the appointed day.(4)Notwithstanding any judgement, decree or order of any court, tribunal or other authority or anything contained in any law for the time being in force, every Receiver, Official Liquidator or any other person in whose possession or custody or under whose control the undertaking of the company or any part thereof may be, shall forthwith deliver possession of the said undertaking or such part thereof, as the case may be, to the State Government or to such person as the State Government may appoint in this behalf.(5)The Receiver, Official Liquidator or any other person who has, on the appointed day, in his possession or under his custody or control any books, documents or other papers relating to the undertaking of the company which has vested, under section 3, in the State Government, shall be liable to account for the said books, documents or other papers to the State Government or to such person as the State Government may appoint in this behalf.(6)All properties in the undertaking which have vested in the State Government under section 3 shall, by virtue of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting it, and any attachment, injunction or any decree or order of any court restricting the use of such property in any manner shall be deemed to have been withdrawn.(7)The State Government may take or cause to be taken all necessary steps for securing the possession of all properties of the undertaking which have vested in the State Government under section 3.
