Section 5 of The Coal Mines Labour Welfare Fund (Repeal) Act, 1986
Power of Central Government to direct vesting of rights in a Government company.
Notwithstanding anything contained in section 4, the Central Government may, if it is satisfied that a Government company is willing to comply, or has complied, with such terms and conditions as that Government may think fit to impose, direct, by an order in writing, that the right, title and interest of the Housing Board in relation to any property shall, instead of continuing to vest in it, vest in the Government company (hereinafter referred to as the Government company) either on the date of publication of the direction or on such earlier or later date (not being a date earlier than the appointed day) as may be specified in the direction, and on such vesting, the liability or obligation, as the case may be, of the Housing Board, in relation to such property shall, instead of continuing to be the liability or obligation of the Central Government, become the liability or obligation, as the case may be, of the Government company.
Summary
- Even though Section 4 transfers everything to the Central Government, the government can choose to transfer Housing Board property to a willing Government company.
- The Government company must agree to, or have already met, the terms and conditions set by the Central Government.
- This transfer must be ordered in writing by the Central Government.
- The transfer can take effect on the date the order is published, or on an earlier or later chosen date, but never earlier than the appointed day.
- When a property is transferred, any related liabilities or obligations of the Housing Board also transfer to the Government company instead of staying with the Central Government.
Practical examples
FAQ
1. Can the Central Government transfer the dissolved Board's properties to any company?
No, it can only transfer them to a Government company that is willing to comply with the government's terms.
2. Is a written order required for this transfer?
Yes, the Central Government must direct this transfer by an order in writing.
3. What is the earliest date that a property transfer to a Government company can take effect?
The transfer cannot take effect on any date earlier than the appointed day.
4. What happens to the liabilities related to a property once it is transferred to a Government company?
The liabilities and obligations also transfer to the Government company, relieving the Central Government of them.
Test yourself
1.Which section's provisions can be overridden by the Central Government's power to vest rights in a Government company?
2.What is required for the Central Government to transfer property rights to a Government company?
3.Can the vesting date specified in the direction be earlier than the appointed day?
4.What must a Government company do to receive these property rights?
5.When property vests in a Government company, what happens to the Housing Board's liabilities in relation to that property?