Section 21 — Vesting of utility in purchaser.

21. Vesting of utility in purchaser.–Where a utility is sold under section 20 or section 24, then, upon 
completion of the sale or on the date on which the utility is delivered to the intending purchaser, as the 
case may be, whichever is earlier– 

(a) the utility shall vest in the purchaser or the intending purchaser, as the case may be, free from 
any debt, mortgage or similar obligation of the licensee or attaching to the utility: 

Provided that any such debt, mortgage or similar obligation shall attach to the purchase money in 
substitution for the utility; and 



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(b) the rights, powers, authorities, duties and obligations of the licensee under his licence shall 
stand transferred to the purchaser and such purchaser shall be deemed to be the licensee.