Section 1 in The Air Corporations (Transfer of Undertakings and Repeal) Act, 1994
Title: Short title and commencement
(1) This Act may be called the Air Corporations (Transfer of Undertakings and Repeal) Act, 1994.
(2) It shall be deemed to have come into force on the 29th day of January,1994.
In this Act, unless the context otherwise requires,--
(a) "appointed day" means such date as the Central Government may, by notification in the Official Gazette, appoint under section 3;
(b) "company" means "Indian Airlines Limited" or "Air India Limited" formed and registered under the Companies Act, 1956 ( 1 of 1956);
(c) "corporations" means Indian Airlines and "Air India" established under section 3 of the Air Corporations Act, 1953 (27 of 1953), and "corporation" means either of the corporations.
Title: Undertakings of corporations to vest in companies
On such date as the Central Government may, by notification in the Official Gazette, appoint, there shall be transferred to, and vest in,--
(a) Indian Airlines Limited, the undertaking of Indian Airlines; and
(b) Air India Limited, the undertaking of Air India.
Title: General effect of vesting of undertakings in the companies
(1) The undertaking of a corporation which is transferred to, and which vests in, a company under section 3 shall be deemed to include all assets, rights, powers, authorities and privileges and all properties, movable and immovable, real or personal, corporeal or incorporeal, in possession or reservation, present or contingent, of whatever nature and wheresoever situate, including lands, works, workshops, aircrafts, cash balances, capital reserves, reserve funds, investments, tenancies, leases and book debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership, possession or power of that corporation in relation to its undertaking, whether within or outside India, all books of account and documents relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of that corporation in relation to its undertaking.
(2) All contracts and working arrangements subsisting immediately before the appointed day and affecting a corporation shall, in so far as they relate to the undertaking of that corporation, cease to have effect or to be enforceable against that corporation and shall be of as full force and effect against or in favour of the company in which the undertaking has vested by virtue of this Act and enforceable as fully and effectually as if, instead of the corporation, the company had been named therein or had been a party thereto.
(3) Any proceeding or cause of action pending or existing immediately before the appointed day by or against a corporation in relation to its undertaking may, as from that day, be continued and enforced by or against the company in which it has vested by virtue of this Act, as it might have been enforced by or against that corporation if this Act had not been passed, and shall cease to be enforceable by or against that corporation.
Title: Licences, etc., to be deemed to have been granted to companies
With effect from the appointed day, all licences, permits, quotas and exemptions granted to a corporation in connection with the affairs and business of that corporation under any law for the time being in force, shall be deemed to have been granted to the company in which the undertaking of that corporation has vested.