telangana: state formation: legal guide: adithya krishna
TRANSCRIPT
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Understanding State Reorganisation Legislations in the Context of Statehood for Telangana
Adithya Krishna Chintapanti
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UNDERSTANDING
STATE REORGANISATION LEGISLATIONS
IN THE CONTEXT OF
STATEHOOD FOR TELANGANA
ARCHITECTURE, PRINCIPLES & PRECEDENTS
A BRIEFING PAPER
ADITHYA KRISHNA CHINTAPANTIB.A.B.L.(Hons) (NALSAR)
L.L.M (Law in Development) U.K.
Ph. D. Student (Law), University of Warwick, U.K.
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Sl.No. Title Pg.No.
1. Introduction 4
2. State Formation and Constitutional Mandate 6
a. What is the role of the State Legislature in State Reorganisation? 6
b. In the event of a imposition of Presidents Rule owing to failure
of constitutional machinery in the State, is it true that areorganisation cannot be introduced in the Parliament as theLegislature does not exist in for the President to refer the Bill ?
8
3. Certain Broad Features & Principles of State Reorganization
Acts
11
3. I. Reorganization of the existing state and the description of the
successor states.
11
II. Representation of the successor states in the Legislatures i.e.
Parliament and their respective Legislative Assembly and
Council.
11
a. The Parliament 11
b.Legislative Assembly & Council 123. III. III. Provisions pertaining to the High Courts of the Successor
States.
12
3. IV. IV. Authorization of Expenditure and the Distribution of
Revenues.
13
a. Authorization of Expenditure 13
b. Distribution of Revenues 13
3.V. Apportionment of Assets and Liabilities 14
a. Land and Goods 14
b. Treasury and Bank Balances 15
c. Arrears of Taxes 15
d. Right to recover loans and advances 15e. Investments and credits in certain funds 16
f. Assets and Liabilities of State Undertakings 17
g. Public Debt 17
h. Floating Debt/Loan 17
i. Refund of taxes collected in excess 18
j. Deposits 18
k. Provident Fund 19
l. Pensions 19
m. Contracts 19
n. Liability in respect of actionable wrong 20
o. Liability as guarantor 20
p. Items in suspense 20
q. Residuary provision 21
r. Apportionment of assets or liabilities by agreement 21
s. Power of Central Government to order allocation or adjustment in
certain cases
21
t. Certain expenditure to be charged on the Consolidated Fund 22
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3. VI. VI. Provisions pertaining to State Corporations and certain
State Institutions.
22
a. Provisions as to State Electricity Board, State Warehousing
Corporation and State Road Transport Corporation
22
b. Continuance of arrangements in regard to generation and supply
of electric power and supply of water
24
c. Provisions as to State Financial Corporation 24
d. General provisions as to statutory corporations 25
e. Provisions as to certain companies 25
f. Temporary provisions as to continuance of certain existing road
transport permits
26
g. Special provisions as to income- tax 26
h. Continuance of facilities in certain State institutions 27
3.VII VII. Provisions as to Central and State Services 27
a. Provisions relating to All- India Services 27
b. Provisions relating to services in the Successor States and Other
Services
27
c. Provisions as to continuance of officers in same post 28
d. Advisory Committees 28
e. Power of Central Government to give directions 28
f. Provisions as to State Public Service Commission 28
g. Jurisdiction of the Commissions, Authorities and Tribunals 28
3.VIII VIII. Legal and Miscellaneous Provisions.
a. Territorial extent of laws 29
b. Power to adapt laws 29
c. Power to construe laws 29
d. Power to name authorities, etc., for exercising statutory functions 30
e. Legal proceedings 30
f. Transfer of pending proceedings 30
g. Right of pleaders to practise in certain cases 31
h. Effect of provisions of the Act inconsistent with other laws 31
i. Power to remove difficulties 31
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1. Introduction
The reorganization of the internal boundaries of the Indian Union has been a routine exerciseundertaken by the Parliament as and when the need arose. Even post the major reorganization
through the States Reorganization Act, 1956 , new states continued to be carved out of existing
administrative entities so as to accommodate social, economic and political demands of citizens
of the region aspiring for statehood. The creation of Gujarat (1960), Meghalaya (1961),
Nagaland (1962), Haryana (1966) , Mizoram (1971), Goa (1987), Chattisgarh (2000),
Jharkhand (2000) and Uttarakhand (2000) are examples of the same. The enactments whose
format has been more or less standard set the precedent as to the expectation from any legislation
carving a state from a pre-existing administrative entity. It is opined that a legislative review of
select enactments would help keep expectations from the state formation process more realistic.
In course of this paper it is proposed to summarize certain common features from the
reorganization legislations creating Haryana, Gujarat, Chattisgarh and Jharkhand. The reason for
choosing these set of states is the diversity they present in terms of geography, timing of
formation and certain solutions arrived at to resolve issues pertaining to sharing of power and
water resources. Gujarat and Haryana were formed in the 60s and there is a good 35-40 year gap
between their formation and the formation of Chattisgarh and Jharkhand. The unaltered nature of
certain provisions over a period of time also crystallizes certain equitable principles followed in
course of State formation. This exercise is aimed at giving the reader an insight into the
legislations reorganizing states, it deals with the broad principles governing state reorganization.
For a more detailed reading the said legislations and insight onto the variations between the
legislations the reader is advised to consult the Annexure to this paper, wherein all the four
state reorganization legislations have been reproduced.
This paper also discusses the relevant constitutional provisions and the role of the Union
Parliament and the State Legislature in the state reorganization process. Through this chapter the
author aims to set to rest the debates surrounding the role and powers of the two institutions.
Also a clear understanding of the constitutional intent and subsequent judicial interpretations
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would help the reader better understand the legislative intent behind the provisions of the state
reorganization legislations.
This exercise is more in the nature of a Briefing Paper aimed at negotiators participating in the
reorganization exercise be it politicians, legislators, bureaucrats , constituencies like the
employee associations and the public at large. It benchmarks standard legislative principles and
procedures involved in the state reorganization process. It is opined that the same would help
keep expectations from the reorganization process more realistic and facilitate a smooth
reorganization of the State of Andhra Pradesh in to Telangana and the residuary entity more
popularly being referred to as Seemandhra.
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2. State Formation and Constitutional Mandate
The Constitution of India (hereinafter the Constitution) proclaims India to be a Union of States1.
Whereas the territorial integrity of the Union is inviolable, the Constitution makers through
Article 3 have vested the power on the Union Parliament to form a state by separation of
territory from any other state.2
The power vested in the Parliament is absolute and the
Parliament alone has the power to alter and amend the internal territorial boundaries of the
Country.
The following procedure has to be followed prior to introducing the State Reorganisation Bill in
the Parliament3
a.
That the Bill should be referred by the President to the Legislature of the State forexpressing its views thereon within such period as may be specified in such a reference
and such other period as the President may extend.
b. Post Presidential reference to the State Assembly the Bill can be introduced in eitherhouse of the Parliament upon the recommendation of the President.
a. What is the role of the State Legislature in State Reorganisation?
The Constitutional consultative process has incorporated the procedure of referring the proposed
reorganisation Bill to the concerned State Legislature so as to elicit opinions. Given the same
there seems to be much debate on the role of the State Legislature when the Bill is referred by
the President and the meaning of the words expressing its views thereon. Courts have time and
again held that the Parliament is not obliged to accept or implement the views of the State
Legislature4. In other words though the Bill is required to be mandatorily referred to the State
Assembly , the recommendations of the State Assembly are not binding on the Parliament 5.
Similarly a fresh reference is not required to be made if post reference and introduction of the
1Article 1 of the Constitution of India.
2Article 3(a) of the Constitution of India .
3Proviso to Article 3 of the Constitution of India.
4Babulal Parate V. State of Bombay AIR 1960 SC 51
5Pradeep Chaudhary V. Union of India 2009 (12) SCC 248.
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Bill in the Parliament, the Parliament deems fit to amend the Bill which was originally referred
by the President to the State Assembly6.
Given the same, the contention that a resolution for bifurcation in the Legislative Assembly
would be defeated by majority and that such a decision would be binding on the Parliament has
no legal basis. It is only the views that are elicited as per the Constitutional process. The absence
of a vote is to negate any move by the majority to thwart the right of the minority constituents to
form a separate administrative unit as per the procedure established by the Constitution.
When faced with questions relating to the interpretation of the provisions of the Constitution, we
must look to the Constituent Assembly Debates (CAD) which preceded the formulation of the
provisions of the Constitution so as to ascertain the Constitutional intent behind the phraseologyof the provisions adopted
7.
When the Constituent Assembly was deliberating in November 1948 on the scope and content of
Article 3, there was a proposal by Prof. KT Shah that the legislation constituting a new State
from any region of a State should originate from the legislature of the State concerned. Had this
procedure been approved, the power to decide the statehood of a region seeking separation
would have been vested with the State legislature dominated by the elite of developed regions.
Opposing the same and using the then demand for an Andhra Province as an example, Shri K
Santhanam stated as under:
I wonder whether Professor Shah fully realises the implications of his amendment. If his
amendment is adopted, it would mean that no minority in any State can ask for separation of
territory, either for forming a new province or for joining an adjacent State unless it can get a
majority in that State legislature. I cannot understand what he means by Originating. Take the
case of Madras Province for instance. The Andhras want separation. They bring up a resolution
in the Madras Legislature. It is defeated by a majority. There ends the matter. The way of the
6Babulal Parate V. State of Bombay AIR 1960 SC 51.
7Adithya Krishna Chintapanti , 8
thMarch 2010, Constitutional Intent and Political Smoke Screen, The Indian
Express , can be accessed at http://newindianexpress.com/states/andhra_pradesh/article255864.ece?service=print
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Andhras is blocked altogether. They cannot take any further step to constitute an Andhra
province...8.
Thus Article 3 emerged in its current form. It is the Constitutional intent that the will of the
people of a region to form a separate State be the sole criterion for the Centre to initiate the
process of State formation. This is the Constitutional benchmark for creating a new State for a
region, as amply demonstrated in the deliberations of the Constituent Assembly and as reflected
in the current phraseology of Article 3 of the Constitution of India.
In fact owing to this provision that the Andhra State was created, however paradoxically the
Seemandhra leadership seems to be relying on a rather incorrect interpretation of the said
provision. Such an interpretation would only create a perception of injustice in the minds of
constituents of Seemandhra Region and it is this perception of injustice which is dangerous and
is bound to cause irreparable damage to the relations between the bifurcated entities.
b. In the event of a imposition of Presidents Rule owing to failure of constitutional machinery in
the State, is it true that a reorganisation cannot be introduced in the Parliament as the Legislature
does not exist in for the President to refer the Bill ?
History is witness to one such situation wherein the area and boundaries of the existing State ofPunjab were altered when it was under Presidents Rule. On 5th July 1966, the President made a
Proclamation under Article 356 of the Constitution. In pursuance of the same, the President
declared that the powers of the Legislature of the said State shall be exercisable by or under the
authority of Parliament as provided for under Article 356 (1)(b) (2) . Article 356(1) (c) also vests
with the President the power to suspend either wholly or partially any provision of the
Constitution with regard to any body or authority of the State. In pursuance of the same, the
President suspended amongst other provisions the Proviso to Article 3 and the Article 174 (1),
the latter which empowers the Governor to summon the House or Houses of the State
Legislature. Subsequent thereto, the Punjab Reorganisation Act of 1966 was passed by the
Parliament , bifurcating the State into Punjab and Haryana States.
8Pg.440, Vol. No. VII, CAD.
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In the case of Manohar Lal v. Union of India9, Mr. Manohar Lal challenged the said bifurcation
on the ground that in the absence of a Legislature led to its not expressing its views under the
Proviso to Article 3 , and, therefore, the President could not have referred the said Bill to the
Parliament and the Parliament in turn could not have legislated and bifurcated the State in the
absence of the views of the Legislature. In this context the Court observed as follows
It will thus be seen that the power to summon the Legislature, of the Governor having been
suspended no occasion could thereafter arise, during the period when such suspension was in
operation, for the Legislature to meet for the purpose of expressing its views on the Bill to be
introduced in Parliament affecting the area, boundaries or name of the concerned State
However, in order to make the matter clearer, the operation of so much of the proviso to Article
3 had also been suspended by the President. In view of the clear power conferred by Art. 356(1)
(a) & (b) to declare that the powers of the Legislature of the State shall be exercisable by or
under the authority of the Parliament, it enacted Act 31 of 1966 by which all the powers of the
Legislature of the concerned State (State of Punjab) to make laws were conferred on the
President. (Para 9)
Court observed that the application of Proviso to Article 3 was suspended and that the powers of
the Legislature of the State were exercisable by or under the authority of the Parliament, whereby
all powers of the legislature of the State of Punjab to make laws were conferred on the President.
Given the same, the Court was of the view that the Petitioners contention i.e. what wastransferred by means of Article 356 (1)(b) of the Constitution was only the legislative power of
the State Legislature but not the power to meet and express its views as contemplated by the
Proviso to Article 3 of the Constitution, was not tenable.
The Counterfactual
Article 370 of the Constitution of India is titled Temporary provisions with respect to the State
of Jammu and Kashmir. Article 370 (1)(b)(ii) limits the power of the Parliament to legislate for
the State of Jammu and Kashmir and requires the concurrence of the Government of the State of
Jammu and Kashmir on such matters which the President may by order specify. In pursuance of
the same, The Constitution (Application to Jammu and Kashmir) Order of 1954 was
promulgated by the President. The said Order notifies the exceptions and modifications to the
provisions of the Constitution, as they would apply to the State of Jammu and Kashmir.
9 AIR 1970 Delhi 178
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The Presidential Order inserts a new Proviso to Article 3 and the same reads as follows
Provided further that no Bill providing for increasing or diminishing the area of the State of
Jammu and Kashmir or altering the name of boundary of that state shall be introduced in
Parliamentwithout the consent of the Legislature of that State.
Hence the Proviso to Section 3 has been modified to the extent of its application to the State of
Jammu & Kashmir , making prior consent of the legislature of that State, mandatory for the
introduction of a Bill increasing or diminishing the area of the State of Jammu and Kashmir. This
provision which requires prior Consent is certainly worded entirely differently from the way
the Proviso as applicable to the rest of the country has been worded i.e. requiring the State
Legislature to express its views. There is therefore a clear distinction made in the
Constitution between the State Legislature of Jammu and Kashmir, which has to consent to
changes in its area and boundary, and the other States of the Union where only the views of
the legislature of the affected State(s) is required to be ascertained
Hence it can be concluded beyond any reasonable doubt that all that is required under Proviso to
Article 3 is a referral to the legislature of the State concerned for expression of its views. It can
also be concluded from the case law discussed, that the views of the State Legislature are not
binding on Parliament. Further, in a case wherein the Proviso to Article 3 has been suspended
under Article 356 (1) (c) owing to imposition of Presidents Rule under Article 356, suchconsultation process can be done away with, given the fact that the legislative power of the State
Legislature are vested with the Parliament in this situation. (Manohar Lal v. Union of India &
Ors (AIR 1970 Delhi 178)) All that the Proviso requires is a referral by the President of the
proposal contained in the Bill. The proviso does not require a fresh reference if the said Bill was
amended and the said amendment was properly moved and accepted in the Parliament
subsequent to the State Legislature expressing its views. (Babulal Parate v. The State of Bombay
and Anr ( AIR 1960 SC 51))The only State Legislature whose consent as opposed to expression
ofviews is required is the State of Jammu and Kashmir as has been discussed above. It is this
phraseology of the Presidential Order of 1954 which further strengthens the view point that the
Proviso to Article 3 is a procedural mechanism to elicit the views of the Legislature of the State.
(The Constitution (Application to Jammu & Kashmir) Order, 1954)
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3. Certain Broad Features & Principles of State Reorganization Acts
Reorganization Acts Areas Covered.
The reorganization acts reviewed cover the following broad areas . This is to the exclusion of
inter-state river water sharing , in the context of the Bachawat Award and contested right
scenario it is opined that it would not be appropriate or prudent to make sweeping statements in
this respect.
I. Reorganization of the existing state and the description of the successor states.
II. Representation of the successor states in the Parliament and their respective Legislative
Assembly and Council.
III. Provisions pertaining to the High Courts of the successor states.
IV. Authorization of Expenditure and the Distribution of Revenues.
V. Apportionment of Assets and Liabilities .
VI. Provisions pertaining to State Corporations and certain State Institutions.
VII. Provisions as to Central and State Services.
VIII. Legal and Miscellaneous Provisions.
I. Reorganization of the existing state and the description of the successor states.
The sections dealing with this firstly describe the newly created State and the districtscomprising its territory
10. Thereafter they describes the territories of the re-organised state
post creation of the new State11
and amends the 1st
Schedule to the Constitution of India which
lists the States in the Indian Union.12
II. Representation of the successor states in the Legislatures i.e. Parliament and their
respective Legislative Assembly and Council.
a. The Parliament This requires the amendment of 4th Schedule of the Constitution of India ,
which delineates the number of seats allocated to the states in the Council of States or the Rajya
Sabha13 and the division of the seats allotted to the successor states proportionately, term of
10Sec. 3 MPRA, 2000, Sec.3 PRA, 1966, Sec.3 BRA, 2000 and Sec.3 BRA, 1960
1111Sec. 4 MPRA, 2000, Sec.6 PRA, 1966 and Sec.4BRA 2000.
12Sec. 5 MPRA, 2000, Sec.7 PRA, 1966, Sec.5 BRA, 2000 and Sec.4 BRA, 1960.
13Sec. 7 MPRA, 2000, Sec.9 PRA, 1966, Sec.7 BRA, 2000 and Sec.6 BRA, 1960.
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the current members however remains unaltered. The Acts ensure that the term of the elected
members of the Lok Sabha remain unaltered14
. This chapter delimits the Parliamentary and
Assembly constituencies15
and specifies the number of seats allotted to the successor states in
the Lok Sabha amending the Representation of People Act, 1950 to the said effect 16
b. Legislative Assembly & Council
It defines the number of seats available in the legislative assemblies of the successor states
amending the Schedule to the Representation of People Act, 1950 to the said effect 17 and allots
the existing members between the Assemblies of the Successor States18. The successor
Legislative Assemblies are then permitted complete the duration of 5 years for which the
members were originally chosen. It lays down the procedure for the election of the election of
the Speaker and the Deputy Speaker in the successor states19. As and where there exists a State
Legislative Council, this chapter provides for its continuation in the residuary state and the
revised membership20
. There is no division of the Legislative Council, nor creation of a new
Legislative Council for the newly created state. In fact certain members from the territories of
the newly created state cease to be members of the Legislative Council of the residuary state21
.
III. Provisions pertaining to the High Courts of the Successor States.
The MPRA 2000 , BRA 2000 and BRA 1960 establish the High Courts of Chattisgarh,Jharkhand and Gujarat respectively
22. The President would then determine as to which of the
Judges from the existing Court would become judges in the High Court of the newly formed
state23
. It also declares that the parent High Court ceases to have jurisdiction on the transferred
territory from the appointed date24
and confers jurisdiction on the territory of the newly formed
14Sec. 11 MPRA, 2000, Sec.12 PRA, 1966, Sec.11 BRA, 2000 and Sec.12 BRA, 1960.
15
Sec. 10 MPRA, 2000, Sec.14PRA, 1966, Sec.10 BRA, 2000 and Sec.14 BRA, 1960.16Sec. 9 MPRA, 2000, Sec.23 PRA, 1966, Sec.9 BRA, 2000 and Sec.10 BRA, 1960.
17Sec. 12 MPRA, 2000, Sec.13 PRA, 1966, Sec.12 BRA, 2000 and Sec.13 BRA, 1960.
18Sec. 13 MPRA, 2000, Sec.15PRA, 1966, Sec.13 BRA, 2000 and Sec.15BRA, 1960.
19Sec. 15 MPRA, 2000, Sec.18PRA, 1966, Sec.15 BRA, 2000 and Sec.17 BRA, 1960.
20Sec.20 PRA, 1966, Sec.17 BRA, 2000 and Sec.21 BRA, 1960.
21Sec.21&22 PRA, 1966, Sec.18&19 BRA, 2000 and Sec.22&23 BRA, 1960.
22Sec.21 MPRA 2000, Sec.25 of the BRA, 2000 and Sec.28 of the BRA 1960.
23Sec.22 MPRA 2000, Sec.26.BRA 2000 and Sec.29 BRA 1960.
24Sec.30 MPRA 2000, Sec.34.BRA 2000 and Sec.37 BRA 1960.
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state on the High Court of the newly formed State25
. The PRA, 1966 however establishes a
common High Court for Punjab, Haryana and Chandigarh, amongst which Chandigarh is a
Union Territory26
.
The Acts also provide for the transfer of pending proceedings pertaining to the jurisdiction of
the newly formed High Courts from the High Court of the residuary state. The Acts protect the
right of the advocate of the residuary state to appear before the High Court of the Successor
State with reference to the transferred proceedings27. With reference to the membership in the
Bar Council the recently enacted BRA 200 and MPRA 2000 give an option for the existing
members of the erstwhile Bar Council of the undivided State to exercise the option of opting for
the membership of the Bar Council of the successor state within one year of the formation of the
new state28. Since the PRA 1966 proposes a common High Court and Common Capital it has a
deeming provision which makes all advocates who were members of the Bar Council of Punjab
to be the members of the Bar Council of Punjab and Haryana29
.
IV. Authorization of Expenditure and the Distribution of Revenues.
a. Authorization of Expenditure30
.
This chapter begins with a transitionary provision whereby the Governor of the undivided State
is empowered to authorize such expenditure from the Consolidated Fund of the newly formedstate prior to the appointed date, pending such expenditure being sanctioned by the Legislative
Assembly of the newly formed state . However the period of authorization of such sanction
cannot exceed six months form the appointed date. It also vests a similar power on the Governor
of the newly formed State post the appointed date to sanction any further expenditure, restricting
the period of sanction to six months from the appointed date.
b. Distribution of Revenues31
:
25Sec.23 MPRA 2000, Sec. 27.BRA 2000 and Sec.30 BRA 1960.
26Sec. 20 PRA, 1966.
27Sec.31 MPRA 2000, Sec. 35.BRA 2000 and Sec.38 BRA 1960
28Sec.24 MPRA 2000 and Sec. 28 of the BRA 2000.
29Sec. 31 PRA,1966.
30Sec. 34 MPRA, 2000, Sec.42 PRA, 1966, Sec.38 BRA, 2000 and Sec.42 BRA, 1960.
31Sec. 36 MPRA, 2000, Sec.46 PRA, 1966, Sec.40BRA, 2000 and Sec.45 BRA, 1960.
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The BRA 1960 and PRA 1966 specify the necessary statutory amendments as referred to in the
corresponding schedule to the enactment so as to effect distribution of revenues. The recent
MPRA 2000 and the BRA 2000 however state that the President of India shall by order
determine the shares of the respective states in respect of total amount payable to the parent state
as per the recommendation of a Finance Commission constituted under Article 280 of the
Constitution of India.
V. Apportionment of Assets and Liabilities
This Chapter refers to the apportionment of Assets and Liabilities of the undivided state prior to
the appointed date32, these have been further categorized as land and goods , treasury and bank
balances, arrears of taxes, right to recover loans and advances, investments and credits in certain
funds, assets and liabilities of state undertakings, public debt, floating debt/loans, refund of taxes
collected in excess, deposits etc , provident fund , pensions, contracts, liability in respect of
actionable wrong, liability as guarantor, items in suspense etc
a. Land and Goods33
The primary principle in terms of distribution of land and goods remains their territorial situation
on the appointed date. Land in these enactments has been defined to include immovable property
of every kind and any rights over such property. In all four instances the principle of territorialityhas been adopted for the apportionment of land. The land within the territory of the newly
formed state remains with the newly formed state. When it comes to goods as per the PRA 1966,
BRA 200 and BRA 1960 the Central Government can step in to distribute them otherwise,
however it is mandated to undertake the same as per the principles of equitable distribution.
It is only in the case of the MPRA 2000 that a proviso culling an exception to the general rule of
principle of territoriality for land has been included. It states that land, stores, articles or other
goods may be distributed otherwise (other than on principle of territoriality) between the
successor states through mutual agreement between them. The provisio further states that failing
such agreement the Central Government upon a request from the governments of successor states
32Sec. 37 MPRA, 2000, Sec.47 PRA, 1966, Sec.41 BRA, 2000 and Sec.46 BRA, 1960.
33Sec. 38 MPRA, 2000, Sec.48 PRA, 1966, Sec.42 BRA, 2000 and Sec.47 BRA, 1960.
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and upon consulting the governments of successor states can issue directions for the distribution
of such land and goods. It is opined that since a provisio cannot negate the intent of the original
clause , this would only be applicable to individual parcels of land for the sake of administrative
convenience in course of transition. By no logic can the language of the provisio be interpreted
to mean entire tracts of land or claim to Hyderabad or areas therein.
Stores held for specific purposes , such as use or utilization in particular institutions, workshops
or undertakings or on particular works under construction shall pass to the state in whose
territories such institutions , workshops , undertakings or works are located. Similarly the
legislations provide for the methodology for the division of stores relating to the Secretariat and
offices of Heads of Departments having jurisdiction over the entire undivided state. They also
deal with unissued stores and one of the methodologies adopted is that of division as per the
population ratio.
Principles: Territoriality, Equitable Distribution and Proportionality i.e. as per population ratio.
b. Treasury and Bank Balances34
The total cash balances in all the treasuries of the undivided State and the credit balances with
the Reserve Bank of India , the State Bank of India or any other bank immediately prior to the
appointed date shall be divided between the successor states as per their population ratio.Principle : Proportionality.
c. Arrears of Taxes35
The right to recover arrears of any tax or duty on property, including arrears of land revenue,
shall belong to the successor State in which the property is situated, and the right to recover
arrears of any other tax or duty shall belong to the successor State in whose territories the place
of assessment of that tax or duty is included on the appointed day.
Principle: Territoriality.
d. Right to recover loans and advances36
34Sec. 39 MPRA, 2000, Sec.49 PRA, 1966, Sec.43 BRA, 2000 and Sec.48 BRA, 1960.
35Sec. 40 MPRA, 2000, Sec.50 PRA, 1966, Sec.44 BRA, 2000 and Sec.49 BRA, 1960.
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The right of the undivided state to recover any loans or advances made before the appointed day
to any local body, society, agriculturist or other person in an area within the undivided state
shall belong to the newly formed State in which that area is included on that day.
The right of the existing undivided state to recover any loans or advances made before the
appointed day to any person or institution outside that State shall belong to the residuary state .
Provided that any sum recovered in respect of any such loan or advance shall be divided between
the residuary state and the newly formed state as per their population ratio.
Principles.
Right of recovery Territoriality.
Distribution of recovered sums, due prior to division Proportionality.
e. Investments and credits in certain funds37
The section dealing with the same amongst others states that the securities held in respect of the
investments made from Cash Balances Investment Account or from any Fund in the Public
Account of the undivided state would be apportioned in the ratio of population of the successor
States.
The investments of the existing undivided State immediately before the appointed day in any
special fund the objects of which are confined to a local area would belong to the successor State
in which that area is included on the appointed day.The investments of the undivided stateimmediately before the appointed day in any private, commercial or industrial undertaking, in so
far as such investments have not been made or are deemed not to have been made from the Cash
Balance Investment Account, shall pass to the successor State in which the principal seat of
business of the undertaking is located.
In this context it would be interesting to note that in the context of BRA 1960 the Cash Balance
Investment Account of the said undivided state was to debited to the extent of Rs.10,000 crores
to the State of Gujarat by an order of the Central Government , and it is only thereafter that the
balance amount was divided between the successor states as per the population ratio. This
amount was earmarked for Gujarat to construct a capital for that State. It may however be noted
that in the context of Telangana and the residuary state of Andhra Pradesh the capital remains in
36Sec. 41 MPRA, 2000, Sec.51 PRA, 1966, Sec.45 BRA, 2000 and Sec.50 BRA, 1960.
37Sec. 42 MPRA, 2000, Sec.52 PRA, 1966, Sec.46 BRA, 2000 and Sec.51 BRA, 1960.
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a territory which is bound to get lesser proportion of the divided amount owing to the principle
of proportionality. Also the Central Government has given an in principle assurance to provide
the necessary financial assistance for the construction of a new capital. In the light of this
political settlement there is no demand from the constituents of the residuary state for a
disproportionate share in the division process owing to the requirement of construction of a new
capital.
f. Assets and Liabilities of State Undertakings38
The assets and liabilities relating to any undertaking of the existing undivided state whether
directly owned or through a body corporate if exclusively located in the newly formed state, shall
pass to the newly formed State. Where a depreciation reserve is maintained by the existing
undivided state for such undertaking, the securities held in respect of investment made from that
fund shall also pass to the newly formed state.
Where any such undertaking is located in more than one successor State, the assets and liabilities
and the securities referred above shall be divided in such manner as may be agreed upon between
the successor States .In case of failure to reach or absence of an agreement, the same shall be
divided as per the directions of the Central Government.
Principles: Territoriality and Equitable Distribution with the Central Government as a animpartial arbiter of interests.
g. Public Debt39
The principle of proportionality governs the distribution of public debt. All liabilities on account
of Public Debt and Public Account of the existing undivided state outstanding immediately
before the appointed day shall be apportioned in the ratio of population of the successor States.
The MPRA 2000 and the BRA 2000 state that the individual items of liabilities to be allocated to
the successor States and the amount of contribution required to be made by one successor State
to another shall be such as may be ordered by the Central Government in consultation with the
Comptroller and Auditor- General of India. However , till such orders are issued, the liabilities
38Sec. 43 MPRA, 2000, Sec.53 PRA, 1966, Sec.47 BRA, 2000 and Sec.53 BRA, 1960
39Sec. 44 MPRA, 2000, Sec.54 PRA, 1966, Sec.48 BRA, 2000 and Sec.54 BRA, 1960
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on account of Public Debt and Public Account of the existing undivided state shall continue to
be the liabilities of the residuary successor state (residuary state of Andhra Pradesh) and not the
newly formed successor state (Telangana) .
Principle: Proportionality.
h. Floating Debt/Loan40
Acts have taken a divergent position on the same. Whereas the BRA 2000 and the BRA 1960
have adopted the principle of territoriality, the MPRA 2000 has taken a stand of division based
on mutual agreement failing which the Central Government would be the arbiter of interests.
Phraseology pertaining to Territoriality
The liability of the existing undivided state in respect of any floating loan to provide short- term
finance to any commercial undertaking shall be the liability of the successor state in whose
territories the undertaking is located.
Phraseology pertaining to mutual agreement or central arbitrage
All liabilities of the existing undivided state of any floating loan to provide short term finance to
any local body, body corporate or other institution shall be determined by mutual agreement
between the successor States, failing which the Central Government shall determine suchliability between the successor States in consultation with such States.
i. Refund of taxes collected in excess41
The liability of the existing undivided State to refund any tax or duty on property, including land
revenue, collected in excess shall be the liability of the successor State in whose territories the
property is situated. The liability of the existing undivided state to refund any other tax or duty
collected in excess shall be the liability of the successor State in whose territories the place of
assessment of that tax or duty is included.
Principle: Territoriality.
40Sec. 45 MPRA, 2000, Sec.49 BRA, 2000 and Sec.55 BRA, 1960.
41Sec. 46 MPRA, 2000, Sec.55 PRA, 1966, Sec.50 BRA, 2000 and Sec.56 BRA, 1960.
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j. Deposits42
The liability of the existing undivided state in respect of any civil deposit or local fund deposit
shall, as from the appointed day, be the liability of the successor State in whose area the deposit
has been made. The liability of the existing undivided State in respect of any charitable or other
endowment shall, as from the appointed day, be the liability of the successor State in whose area
the institution entitled to the benefit of the endowment is located or of the successor State to
which the objects of the endowment, under the terms thereof, are confined.
k. Provident Fund43
The liability of the undivided state in respect of the provident fund account of a Government
servant in service on the appointed day shall be the liability of the successor State to which that
government servant is permanently allotted. The PRA 1966 however also makes provision for
the past liabilities an issue which is bound to arise in course of the negotiation process. The PRA
1966 states that the liability of the existing undivided state in respect of the provident fund
account of a Government servant who has retired from service before the appointed day shall be
the liability of the residuary Successor state (State of Andhra Pradesh) in the first instance and
shall be adjusted between the successor States according to the population ratio. This approach
may appear problematic in the first instance given the under representation of the residents ofTelangana in the State Services . However it is being flagged as the same ought to be deliberated
further. May be a Centrally mediated solution could be arrived at. My opinion however is to stick
to the principle of proportionality and seek a one time grant from the Central Government to do
good the disproportionate financial burden. Principles are only as effective as the consistency of
their application.
Principles : Current Liability - Territoriality. Past Liability Proportionality.
42Sec. 47 MPRA, 2000, Sec.56 PRA, 1966, Sec.51 BRA, 2000 and Sec.57 BRA, 1960.
43Sec. 48 MPRA, 2000, Sec.57 PRA, 1966, Sec.52 BRA, 2000 and Sec.58 BRA, 1960
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l. Pensions44
The liability of the existing undivided state in respect of pensions would be apportioned
between the successor States in accordance with the principles of territoriality and
proportionality and have been more clearly delineated in the schedules appended to the
reorganization acts. Readers are advised to read the schedules mentioned in the relevant sections
for a more detailed understanding of the said provision.
Principles: Proportionality and Territoriality.
m. Contracts45
All contracts made by the undivided state in the exercise of its executive power for any purposes
of the State, shall be deemed to have been validly made on behalf of the successor states post the
appointed date. The rights and liabilities arising out of the said contracts shall be deemed to be
rights and liabilities of the successor states. This initial allocation of rights and liabilities shall be
subject to financial adjustment as may be agreed upon between the successor States and in the
absence of such agreement, as directed by the Central Government may.
Principle: Continuation of contractual obligations. Negotiated agreement or Centrally mediated
allocation of rights and liabilities.
n.Liability in respect of actionable wrong
46
When the undivided State is subject to any liability in respect of any actionable wrong other than
breach of contract, that liability shall be the liability of the successor state in whose territory the
cause of action arose. In any other instance it shall be firstly the liability of the residuary state
(Andhra Pradesh), however shall be subject to such financial adjustment as may be agreed
between the successor states. In the absence of such agreement the same shall be as directed by
the Central Government.
Principle: Territoriality or Negotiated Agreement or Centrally mediated allocation of rights and
liabilities.
44Sec. 49 MPRA, 2000, Sec.58 PRA, 1966, Sec.53 BRA, 2000 and Sec.59 BRA, 1960.
45Sec. 50 MPRA, 2000, Sec.59 PRA, 1966, Sec.54 BRA, 2000 and Sec.60 BRA, 1960.
46Sec. 51 MPRA, 2000, Sec. 60 PRA, 1966, Sec.55 BRA, 2000 and Sec.61 BRA, 1960.
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o. Liability as guarantor47
Where the undivided state is liable as guarantor before the appointed date, in respect of any
liability of a registered co- operative society or other person, the said liability shall be divided
as per the territory of operation of such society or person in the successor states. In any other
scenario it would be initially the liability of the residuary state (Andhra Pradesh) , subject to such
financial adjustment as may be agreed upon between the States . In the absence of such
agreement the same shall be as directed by the Central Government.
Principle: Territoriality or Negotiated Agreement or Centrally mediated allocation of rights and
liabilities.
p. Items in suspense48
This is a section inserted in the enactments as a matter of abundant caution. If any item in
suspense is ultimately found to affect an asset or liability of the nature referred to in any of the
provisions discussed in the chapter pertaining to Apportionment of Assets and Liabilities then
the same shall be dealt with in accordance with that provision.
q. Residuary provision49
As in the case with the previous section this is a section inserted to cover any unforeseen
circumstance. It states that the benefit or burden of any asset or liability of the existingundivided state not dealt with in the chapter pertaining to Apportionment of Assets and
Liabilities shall pass to the residuary successor state in the first instance, subject to such
financial adjustment a may be agreed upon between both the successor . In the absence of such
agreement the same shall be as directed by the Central Government.
r. Apportionment of assets or liabilities by agreement50
This section confers a choice to the successor states to adopt a course of action other than that
provided in the foregoing provisions of this Chapter and divide assets and liabilities through
agreement to the exclusion of the methodology discussed below. However any such
47Sec. 52 MPRA, 2000, Sec. 61 PRA, 1966, Sec.56 BRA, 2000 and Sec.62 BRA, 1960.
48Sec. 53 MPRA, 2000, Sec. 62 PRA, 1966, Sec.57 BRA, 2000 and Sec.63 BRA, 1960.
49Sec. 54 MPRA, 2000, Sec. 63 PRA, 1966, Sec.58 BRA, 2000 and Sec.64 BRA, 1960.
50Sec. 55 MPRA, 2000, Sec. 64 PRA, 1966, Sec.59 BRA, 2000 and Sec.65 BRA, 1960.
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apportionment as per the relevant sections has to be done through an agreement between the
successor states.
In the authors opinion in the absence of requisite bargaining power it would be in the best
interests of the negotiators on behalf of the Telangana State to stick to the provisions of this
chapter rather than go for a negotiated agreement. The methodologies and the approach
enumerated in this chapter if adhered to in letter and spirit are all geared towards equitable
distribution.
s. Power of Central Government to order allocation or adjustment in certain cases51.
This clause deals with any subsequent claims which may be raised by the successor states to a
maximum of three years from the appointed date and broadly reads as under :
Whenever a successor State becomes entitled to any property or obtains any benefits or becomes
subject to any liability, and the Central Government is of opinion, on a reference made within a
period of three years from the appointed day by any State that it is just and equitable that that
property or those benefits should be transferred to, or shared with, one or more of the other
successor States, or that a contribution towards that liability should be made by one or more of
the other successor States, the said property or benefits shall be allocated in such manner, or theother successor State or States shall make to the State primarily subject to the liability such
contribution in respect thereof, as the Central Government may, after consultation with State
Governments concerned by order determine.
t. Certain expenditure to be charged on the Consolidated Fund52
This is a section that deals with appropriation of moneys for the purpose of giving effect to the
provisions of the Act. It states that all sums payable by either of the successor state to the other
State or by the Central Government to either of the successor states, by virtue of the provisions
of this Act, shall be charged on the Consolidated Fund of the State by which such sums are
51Sec. 56 MPRA, 2000, Sec. 65 PRA, 1966, Sec.60 BRA, 2000 and Sec.66 BRA, 1960.
52Sec. 57 MPRA, 2000, Sec. 66 PRA, 1966, Sec.61 BRA, 2000 and Sec.67 BRA, 1960.
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payable or, as the case may be, the Consolidated Fund of India in the case of the Central
Government.
VI. Provisions pertaining to State Corporations and certain State Institutions.
a. Provisions as to State Electricity Board, State Warehousing Corporation and State Road
Transport Corporation53
This section deals with continuation of existing supply of service arrangements of the statutory
corporations and boards in course of transition and the mode of division of assets post division
of the State. Not all Acts have covered the Transportation Corporation (may be the then existing
undivided state did not have one) but all three body corporate are of interest with reference to
Andhra Pradesh. Whereas the Electricity Board as per the previous enactments was performing
the generation, transmission and distribution functions, given the enactment of the Electricity Act
, 2003 (the last reorganization was in the year 2000) and with the unbundling of the functions
into companies dealing with generation, transmission and distribution, the principles extended to
the public Electricity Board need to be extended to the private generating stations alongside the
public sector ones owned by APGENCO and also the APTRANSCO and the five distribution
companies, to the extent of continuing the existing generation , distribution and transmission
commitments . Also as per the Electricity Act, 2003 the distribution companies are contractuallybound to supply the requisite power to the consumer and the generators are in turn contractually
bound to supply the agreed power to the distribution companies. However, it is opined that an
order or direction from the Central Government to maintain status quo would help protect the
legitimate interests of the Telangana consumers. The broad scope and extent of the said
provision is described below.
Continuity of functioning : That the State Electricity Board, State Warehousing Corporation and
the State Road Transport Corporation shall continue to function in those areas in respect of
which they were functioning immediately before the appointed day , subject to certain directions
issued by the Central Government .
53Sec. 58 MPRA, 2000, Sec. 67 PRA, 1966, Sec.62 BRA, 2000 and Sec.68 BRA, 1960.
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Apportionment of assets, rights and liabilities: The said Boards or Corporations shall cease to
function as from, and shall be deemed to be dissolved on such date as the Central Government
may notify. Upon such dissolution their assets, rights and liabilities shall be apportioned
between the successor States in such manner as may be agreed upon between them within one
year of the dissolution of the Board or the Corporation. In the absence of such agreement the
same shall be as directed by the Central Government.
One another aspect of importance discussed in the MPRA 2000 and the BRA 2000 is the
liability of the said existing Electricity Board relating to the unpaid dues of the coal supplied to
the Board by any public sector coal company shall be provisionally apportioned between the
State Electricity Boards constituted respectively in the successor States of the existing undivided
state or after the date appointed for the dissolution of the Board , in such manner as may be
agreed upon between the Governments of the successor States within one month of such
dissolution. If no such agreement is reached the same shall be determined by the Central
Government. The same could be applied to the existing public thermal generators and the private
generators. This provision also provides for interest payments to the public sector coal company
in case of delay in payments made, this would be important in terms of outstanding dues to
Singareni Collieries Company Ltd on the appointed date. The section also provides for the
successor new state to constitute Boards and entities on the lines of those whose assets are beingdivided so as to transfer the same to the newly constituted entities. In addition to the same the
said section also makes certain arrangements as regards present employees of these entities.
Readers are advised to take a closer look at the section across the reorganization Acts .
b. Continuance of arrangements in regard to generation and supply of electric power and supply
of water54
.
If the Central Government is of the opinion that the arrangement with regard to the generation or
supply of electric power or the supply of water for any area or in regard to the execution of any
project for such generation or supply has been or is likely to be modified to the disadvantage of
that area by reason of the fact that it is outside the State in which the power stations and other
installations for the generation and supply of such power, or the catchment area, reservoirs and
54Sec. 68 PRA, 1966, Sec.63 BRA, 2000 and Sec.69 BRA, 1960.
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other works for the supply of water, as the case may be, are located, the Central Government
may give such directions as it deems proper to the State Government or other authority
concerned for the maintenance, so far as practicable, of the previous arrangement. Given the post
Electricity Act , 2003 and the privatization of power generation , any new clause must also cover
the private sector within the said obligations to continue supply (not withstanding the adequacy
of the provisions of the Electricity Act, 2003 protecting the continuity of supply)
c. Provisions as to State Financial Corporation55
Transitionary Provision : The State Financial Corporation of the undivided State continue to
function in the areas in respect of which it was functioning immediately before the appointed
date , subject to t to such directions as may from time to time, be issued by the Central
Government after consultation with the Governments of the successor States.
Scheme for reconstitution, reorganization or distribution:
The Board of Directors of the Corporation may, with the previous approval of the Central
Government or if so required by the Central Government may convene a meeting for the
consideration of a scheme for the reconstitution or reorganisation or dissolution, as the case may
be, of the Corporation, including proposals regarding the formation of new Corporations, and the
transfer thereto of the assets, rights and liabilities of the existing Corporation. If such a scheme isapproved at the general meeting by a resolution passed by a majority of the shareholders present
and voting, the scheme shall be submitted to the Central Government for its sanction.
If the scheme is sanctioned by the Central Government either without modifications or with
modifications which are approved at a general meeting, the Central Government shall certify the
scheme and would be binding on the corporations affected by the scheme as well as the
shareholders and creditors .
If the scheme is not so approved at the general meeting or sanctioned by the Central
Government , the Central Government may refer the scheme to such Judge of the High Court of
the residuary successor state (Andhra Pradesh) and the decision of the Judge in regard to he
55Sec. 59 MPRA, 2000, Sec. 69 PRA, 1966, Sec.64 BRA, 2000 and Sec.70 BRA, 1960
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scheme shall be final and shall be binding on the corporations affected by the scheme as well as
the shareholders and creditors .
However, the aforesaid provisions do not prevent the Government of the successor States from
constituting, at any time on or after the appointed day, a State Financial Corporation for that
State under the State Financial Corporation Act, 1951 (63 of 1951 ).
d. General provisions as to statutory corporations56
Where any body corporate constituted under a Central Act, State Act or Provincial Act for the
existing undivided State , becomes an inter-State body corporate. Such body corporate shall, on
and from the appointed day, continue to function and operate in those areas in respect of which t
was functioning and operating immediately before the appointed day. It shall be subject to such
directions as may be issued by the Central Government, after consultation with the Governments
of the successor States, until other arrangements are made by law with respect of the said body
corporate.
e. Provisions as to certain companies57
This section deals with certain state owned corporations or companies enumerated in the
corresponding schedule or as reproduced in the section. It clarifies that not withstanding anythingcontained in the chapter, the scheduled companies shall function in the successor States even
post the appointed date, until otherwise required as per law or as agreed between the successor
states or direction issued by the Central Government .
f. Temporary provisions as to continuance of certain existing road transport permits58
A permit granted immediately before the appointed day by the State Transport Authority of the
undivided State or any Regional Transport Authority in that State and if such permit was , valid
and effective in any area in the newly formed successor State, then such permit shall be deemed
to continue to be valid and effective in that area. It shall not be necessary for any such permit to
be countersigned by the State Transport Authority of the newly formed successor state or any
56Sec. 62 MPRA, 2000, Sec. 72 PRA, 1966, Sec.66 BRA, 2000 and Sec.74 BRA, 1960
57Sec. 60 MPRA, 2000, Sec. 73 PRA, 1966 and Sec.65 BRA, 2000
58Sec. 63 MPRA, 2000, Sec. 74 PRA, 1966, Sec.67 BRA, 2000 and Sec.76 BRA, 1960
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Regional Transport Authority therein for the purpose of validating it for use in such area.
However if required the Central Government may, after consultation with the successor State
Government or Governments concerned add to, amend or vary the conditions attached to the
permit by the Authority by which the permit was granted.
No tolls, entrance fees or other charges shall be levied after the appointed day in respect of any
transport vehicle for its operations in any of the successor States under such permit, if such
vehicle was, immediately before that day, exempt from the payment of any such toll, entrance
fees or other charges for its operations in the territory of the newly formed state . However if
required the Central Government may, after consultation with the successor State Government
or Governments concerned authorise the levy of any such toll, entrance fees or other charges.
g. Special provisions as to income- tax59
Where the assets, rights and liabilities of any body corporate carrying on any business are
transferred to any other bodies corporate which after the transfer carry on the same business, the
losses or profits or gains sustained by the body corporate first mentioned which, but for such
transfer, would have been allowed to be carried forward and set off in accordance with the
provisions of Chapter VI of the Income- tax Act, 1961 (4 of 1961 ), shall be apportioned
amongst the transferee bodies corporate in accordance with the rules to be made by the CentralGovernment in this behalf and, upon such apportionment, the share of loss allotted to each
transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of
the said Act, as if the transferee body corporate had itself sustained such loss in a business
carried on by it in the years in which these losses were sustained.
h. Continuance of facilities in certain State institutions60
The Government of residuary successor State or the newly created successor State, shall continue
to provide facilities to the people of the other State in the institutions contained in the schedule
to the Act located in their respective States . The said provision of services shall not be less
favorable than what were being provided to them before the appointed day, for such period and
59Sec. 65 MPRA, 2000, Sec. 76 PRA, 1966, Sec.69 BRA, 2000 and Sec.78 BRA, 1960
60Sec. 66 MPRA, 2000, Sec.77 PRA, 1966, Sec.70 BRA, 2000 and Sec.79 BRA, 1960.
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upon such terms and conditions as may be agreed upon between the two State Governments
within a period of one year from the appointed day . If no agreement is reached within the said
period of one year, then, as may be fixed by the Central Government.
VII. Provisions as to Central and State Services
a. Provisions relating to All- India Services61
The statute creates two cadres for the successor States in place of the single cadre of the
undivided State for the Indian Administrative Service, Indian Police Service and Indian Forest
Service. The initial strength and composition of the State cadres shall be such as may be
determined by the Central Government before the appointed date.
b. Provisions relating to services in the Successor States and Other Services62
Every employee who immediately before the appointed day is serving in connection with the
affairs of the undivided State, shall provisionally continue to serve in connection with the affairs
of the undivided State unless he is required by order of the Central Government to serve
provisionally in connection with the affairs of the newly formed State.
Post the appointed day, the Central Government shall by order, determine the successor State towhich every person in the services of the undivided State be finally allotted for service and the
date such allotment shall take effect or be deemed to have taken effect. Every employee who is
finally allotted to a successor State shall, if he is not already serving therein be made available
for serving in the successor State from such date as may be agreed upon between the
Governments concerned . In the absence of such agreement as per the order of the Central
Government.
c. Provisions as to continuance of officers in same post63
Every employee who, immediately before the appointed day is holding or discharging duties in
the undivided State and on the appointed day falls within any of the successor States shall
61Sec. 67 MPRA, 2000, Sec.81 PRA, 1966, Sec.71 BRA, 2000 and Sec.80 BRA, 1960.
62Sec. 68 & 69 MPRA, 2000, Sec.82 PRA, 1966, Sec.72&73 BRA, 2000 and Sec.81 BRA, 1960.
63Sec. 70 MPRA, 2000, Sec.83 PRA, 1966, Sec.74 BRA, 2000 and Sec.82 BRA, 1960.
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continue to hold the same post or office in that successor State, and shall be deemed to have been
duly appointed to the post or office by the Government of or any other appropriate authority in,
that successor State.
d. Advisory Committees64
The Central Government may establish one or more Advisory Committees for the purpose of
assisting it with regard to the discharge of any of its functions under this chapter i.e. Provisions
as to Services. Such committee (s) would be expected to ensure fair and equitable treatment to
all persons affected by the provisions of the present Chapter and the proper consideration of any
representations made by such persons.
e. Power of Central Government to give directions65
The Central Government may, give such directions to the State Governments of the successor
States as may appear to it to be necessary for the purpose of giving effect to the provisions of the
chapter and the successor State governments shall be required to comply with the same.
f. Provisions as to State Public Service Commission66
g. Jurisdiction of the Commissions, Authorities and Tribunals
67
This provision is unique to the MPRA 2000, however I found it of extreme utility, given its
sweep and coverage of institutions not discussed in other enactments. This section amongst
others, states that every Commission, Authority, Tribunal, University, Board or any other body
constituted under a Central Act, State Act or Provincial Act and having jurisdiction over the
existing undivided State shall on and from the appointed day continue to function in the
successor residuary State and also exercise jurisdiction as existed before the appointed date over
the newly formed successor State for a maximum period of two years from the appointed day or
till such period as is decided by mutual agreement between the successor States. The successor
State may during the said period may
64Sec. 71 MPRA, 2000, Sec.82(4) PRA, 1966, Sec.75 BRA, 2000 and Sec.81 (4) BRA, 1960.
65Sec. 72 MPRA, 2000, Sec.84 PRA, 1966, Sec.76 BRA, 2000 and Sec.83 BRA, 1960.
66Sec. 73 MPRA, 2000, Sec.85 PRA, 1966, Sec.77 BRA, 2000 and Sec.84 BRA, 1960.
67Sec. 74 MPRA, 2000.
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(i) continue such body as a joint body for the successor States; or
(ii) to abolish it, on the expiry of that period, for either of the successor States; or
(iii) constitute a separate commission, Authority, Tribunal, University, Board or any other body,
as the case may be, for the newly formed successor State , whichever is earlier.
VIII. Legal and Miscellaneous Provisions.
a. Territorial extent of laws68
This provision has been inserted to avoid a legal vacuum and the need to re-legislate all the acts
prevalent in the undivided State for the newly formed successor State. The Section states that
there would be no change in the territories to which any law in force immediately before the
appointed day extends or applies, and territorial references in any such law to the undivided State
shall, until otherwise provided by a competent Legislature or other competent authority be
constituted as meaning the territories within the then existing undivided State before the
appointed day.
b. Power to adapt laws69
This again is a facilitative provision. It confers the power to adapt laws on the Central (UnionList) and State Governments made before the appointed date in relation to the successor States
before the expiry of two years of the appointed date by order . Such an adaptation of the law
could be either by way of repeal or amendment, as may be necessary or expedient. Thereafter
every such law shall have effect subject to the adaptations and modifications so made until
altered, repealed or amended by a competent legislature or other competent authority.
c. Power to construe laws70
This section states that any court, tribunal or authority, required or empowered to enforce such
law may, for the purpose of facilitating its application in relation to the successor States, construe
68Sec. 78 MPRA, 2000, Sec.88 PRA, 1966, Sec.84 BRA, 2000 and Sec.87 BRA, 1960.
69Sec. 79 MPRA, 2000, Sec.89 PRA, 1966, Sec.85 BRA, 2000 and Sec.88 BRA, 1960.
70Sec. 80 MPRA, 2000, Sec.90 PRA, 1966, Sec.86 BRA, 2000 and Sec.89 BRA, 1960.
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the law in such manner, without affecting the substance, as may be necessary or proper in regard
to the matter before it.
d. Power to name authorities, etc., for exercising statutory functions71
The Government of the newly formed successor State, as respects the transferred territory from
the undivided State may, by notification in the Official Gazette, specify the authority, officer or
person who, on or after the appointed day, be competent to exercise such functions exercisable
under any law in force on that day as may be mentioned in that notification and such law shall
have effect accordingly.
e. Legal proceedings72
Where immediately before the appointed day, the existing undivided State is a party to any legal
proceedings with respect to any property, rights or liabilities subject to apportionment between
the successor States under this Act, the State which succeeds to, or acquires a share in, that
property or those rights or liabilities shall be deemed to be substituted for the existing undivided
State or added as a part to those proceedings, and the proceedings may continue accordingly.
f. Transfer of pending proceedings73
Every proceeding pending immediately before the appointed day before a court (other than theHigh Court), tribunal, authority or officer in any area which on that day falls within the
undivided State, shall if it is a proceeding relating exclusively to the territory, which is the
territory of the newly formed successor State, stand transferred to the corresponding court,
tribunal, authority or officer of that State.
If any question arises as to whether any proceeding should stand transferred as per this procedure
, it shall be referred to the High Court of the residuary successor State and the decision of that
High Court shall be final.
71Sec. 81 MPRA, 2000, Sec.91 PRA, 1966, Sec.87 BRA, 2000 and Sec.90 BRA, 1960.
72Sec. 82 MPRA, 2000, Sec.92 PRA, 1966, Sec.88 BRA, 2000 and Sec.91 BRA, 1960.
73Sec. 83 MPRA, 2000, Sec.93 PRA, 1966, Sec.89 BRA, 2000 and Sec.92 BRA, 1960.
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g. Right of pleaders to practise in certain cases74
Any person who, immediately before the appointed day, is enrolled as a pleader entitled to
practice in any subordinate courts in the undivided State shall, for a period of one year from that
day continue to be entitled to practice in those courts, notwithstanding that the whole or any part
of the territories within the jurisdiction of those courts has been transferred to the newly formed
successor State .
h. Effect of provisions of the Act inconsistent with other laws75.
This section asserts the overriding nature of the reorganization Act. It says that the provisions of
the Act shall have effect notwithstanding anything inconsistent contained in any other law.
i. Power to remove difficulties76
If any difficulty arises in giving effect to the provisions of this Act, the President may, by order,
do anything not inconsistent with such provisions which appears to him to be necessary or
expedient for the purpose of removing the difficulty.
74Sec. 84 MPRA, 2000, Sec.94 PRA, 1966, Sec.90 BRA, 2000 and Sec.93 BRA, 1960.
75Sec. 85 MPRA, 2000, Sec.95 PRA, 1966, Sec.91 BRA, 2000 and Sec.94 BRA, 1960.
76Sec. 86 MPRA, 2000, Sec.96 PRA, 1966, Sec.92 BRA, 2000 and Sec.95 BRA, 1960.
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