Section 7
Transfer of the undertakings of the two companies from an existing Government company to a new Government company
The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984
About this Act
An Act to provide for the acquisition and transfer of the undertakings of the Inchek Tyres Limited and the National Rubber Manufacturers Limited, with a view to securing the proper management of such undertakings so as to subserve the interests of the general public by ensuring the continued manufacture, production and distribution of tyres, tubes and other rubber goods which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto.
(1) Notwithstanding anything contained in sections 3 and 4, where the
undertakings of each of the two companies have been directed, under sub-section (1) of section 6, to vestin an existing Government company, the Central Government may, if it is satisfied that a new
Government company is willing to comply, or has complied, with such terms and conditions as that
Government may think fit to impose, declare, by notification, that the undertakings of each of the two
companies and the right, title and interest of each of the two companies in relation to its undertakings be
transferred to that new Government company, and on the issue of such declaration, the right, title and
interest of each of the two companies in relation to its undertakings which had been directed under subsection (1) of section 6 vest in an existing Government company, shall, instead of continuing to vest in
that existing Government Company, vest in that new Government company with effect from the date on
which such declaration is made.
(2) Where the right, title and interest of the existing Government company in relation to the undertakings of the two companies vest, under sub-section (1), in a new Government company, that Government company shall, on and from the date of such vesting, be deemed to have become the owner in relation to such undertakings and the rights and liabilities of the existing Government company in relation to such undertakings, shall, on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of that new Government company
(2) Where the right, title and interest of the existing Government company in relation to the undertakings of the two companies vest, under sub-section (1), in a new Government company, that Government company shall, on and from the date of such vesting, be deemed to have become the owner in relation to such undertakings and the rights and liabilities of the existing Government company in relation to such undertakings, shall, on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of that new Government company