1977 (4) TMI 185

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....gh Court challenging the validity of the notifications on several grounds. A single Judge of the High Court having dismissed the writ petition on August 11, 1969 the company preferred a letters patent appeal. During the pendency of the appeal, the management of the company was taken over by the Central Government on October 8, 1972 under the Industries (Development and Regulation) Act, 1951. On September 21, 1974 an Ordinance called the Sick Textile Undertakings (Nationalisation) Ordinance, 1974 was promulgated by virtue of which the textile undertaking of the company the management of which had been taken over by the Central Government, vested absolutely in the Central. Government with effect from the "appointed day", which was A....

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....all other documents of whatever nature relating thereto and shall also be deemed to include the liabilities and obligations specified in Sub-section (2) of Section 5. (2) All property as aforesaid which have vested in the Central Government under Sub-section (1) of Section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage charge, lien and all other incumbrances affecting it, and any attachment, injunction or decree or order of any court restricting the use of such property in any manner shall be deemed to have been withdrawn. The other Sub-sections of Section 4 are not relevant for the present purpose. 2. The National Textile Corporation applied to the High Court for being substituted in pla....

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....med to include all assets, rights and interests in the ownership, pos session or control of the owners of such undertakings immediately be fore the appointed day. Sub-section (2) of Section 4 provides that all property vesting in the Central Government under Section 3 shall, "by force of such vesting, be freed and discharged from any trust, obligation, mortgage. charge, lien and all other incumbrances affecting it, and any attachment, in junction or decree or order of any court restricting the use of such property in any manner shall be deemed to have been withdrawn. 4. Counsel for the appellant argues that Sub-section (2) of Section 4 is intended to vest the sick textile undertakings in the Central Government free from all fetters, a....

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....the respondent. State of Maharashtra, submits that the term incumbrance should take colour from the different kinds of burden on the land specified in Section 4(2) preceding the words 'all other incumbrances"; it is argued that incumbrance in the context means some burden or liability that is attached to the property, like mortgage, charge, lien etc. That this is so would also appear from what follows the words "all other incumbrances affecting it." Having said that the vesting will be free from trust, obligation. mortgage. charge, lien and all other incumbrances affecting it, Sub-section (2) goes on to add that "any attachment, injunction or decree or order of any court restricting the use of such property in any ma....